This part puts a 1 percent tax on money sent abroad. It bites only where the sender hands over cash or a money order. Transfers from a bank account or by card are left out. It starts with transfers made after December 31, 2025.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70604 in the PDF
What the document says
“There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer.”
The section adds a new subchapter C and section 4475 to chapter 36 of the Internal Revenue Code of 1986 imposing a tax of 1 percent of the amount on any remittance transfer.
What the document actually says
“There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer.”
That sentence, in plain words
A tax is laid on money sent abroad. It comes to 1 percent of the sum sent.
What this is about
A remittance transfer is money sent to someone in another country. The rate is flat. The next rules say who pays it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: remittance transfer providersHow: statuteSec. 70604 in the PDF
What the document says
“The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary”
The section requires the sender to pay the tax, requires the remittance transfer provider to collect it from the sender and hand it to the Secretary quarterly at the time and in the manner the Secretary provides, and makes the provider liable for any tax not collected when the transfer is made.
What the document actually says
“The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary”
That sentence, in plain words
The firm sending the money must collect the tax. It takes it from the sender. It must hand it over every three months.
What this is about
The sender owes the tax in the first place. If the firm fails to collect it, the firm owes it. That is a backstop, not a choice.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70604 in the PDF
What the document says
“The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider.”
The section limits the tax to transfers where the sender hands the provider cash, a money order, a cashier's check or another similar physical instrument as the Secretary determines.
What the document actually says
“The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier's check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider.”
That sentence, in plain words
The tax reaches only some transfers. The sender must hand over cash or a money order. A cashier's check counts too.
What this is about
Any similar paper item may count. The Secretary decides which. Other ways of paying fall outside the tax.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70604 in the PDF
What the document says
“Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are--”
The section provides that the tax does not apply where the funds are drawn from an account at a financial institution described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code that is subject to the requirements of subchapter II of chapter 53 of that title, or are funded with a debit card or a credit card issued in the United States. The terms remittance transfer, remittance transfer provider and sender take their meanings from section 919(g) of the Electronic Fund Transfer Act, and credit card and debit card from section 920(c) of that Act. For the anti-conduit rules in section 7701(l), a remittance transfer is treated as a financing transaction.
What the document actually says
“Subsection (a) shall not apply to any remittance transfer for which the funds being transferred are--”
That sentence, in plain words
The tax does not reach some transfers. Those are ones where the money comes from the two sources below.
What this is about
One is an account at a covered bank. The other is a debit or credit card issued here. Both fall outside the tax.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70604 in the PDF
What the document says
“The amendments made by this section shall apply to transfers made after December 31, 2025.”
The section applies its amendments to transfers made after December 31, 2025.
What the document actually says
“The amendments made by this section shall apply to transfers made after December 31, 2025.”
That sentence, in plain words
The tax reaches transfers made after December 31, 2025. Older ones are left out.
What this is about
The old rules still hold for them. The date is fixed in the law. It turns on when the transfer is made.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the new subchapter does: impose the tax, fix who pays and who collects it, limit it to cash and similar instruments, carve out bank account and card funded transfers, define the terms, apply the anti-conduit rules, and set the effective date.
The conforming amendment adding an item to a table of subchapters.
The section adds a subchapter to the Internal Revenue Code of 1986 and takes its terms from the Electronic Fund Transfer Act and title 31 of the United States Code, neither of which is indexed here.
