Federal Register #REG-114499-25

Proposed Rulemaking: Excise Tax on Remittance Transfers by Treasury and IRS

This notice announces a proposed rulemaking by the Treasury Department and Internal Revenue Service (IRS) regarding a new excise tax on remittance transfers: - Government Buyer: - Department of the Treasury - Internal Revenue Service (IRS) - Purpose and Scope: - Proposes regulations to implement a 1% excise tax on certain remittance transfers occurring after December 31, 2025 - Defines taxable remittance transfers and specifies when the tax applies - Clarifies which payment instruments are subject to the tax, including cash, money orders, cashier's checks, and traveler's checks - Aligns definitions with the Electronic Fund Transfer Act (EFTA) to reduce compliance burdens - Affected Parties: - Remittance transfer providers - Individuals sending remittances - Notable Requirements: - Details reporting and recordkeeping obligations for affected parties - Invites public comments and requests for a hearing - No procurement of products or services is involved; this is a regulatory action - No OEMs or vendors are mentioned, as this is not a procurement opportunity

Description

This notice of proposed rulemaking by the Treasury Department and the Internal Revenue Service outlines proposed regulations implementing a 1% excise tax on certain remittance transfers occurring after December 31, 2025. The regulations define taxable remittance transfers, specify the timing of tax attachment, and clarify which payment instruments trigger the tax, including cash, money orders, cashier's checks, and traveler's checks. The proposal affects remittance transfer providers and individuals sending remittances, aiming to align with existing definitions under the Electronic Fund Transfer Act while minimizing compliance burdens. Comments on the proposed regulations are due by June 12, 2026.

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