IRS Grants Temporary Penalty Relief for New 1% Remittance Transfer Tax Starting in 2026！

The IRS is providing penalty relief during the first three quarters of 2026 for banks and money transfer companies (so called “remittance transfer providers”) that fail to deposit a new 1% federal remittance transfer tax on international money transfers. Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from certain senders, make semimonthly deposits and file quarterly returns with the IRS. The first semimonthly deposit is due Jan. 29, 2026. The remittance tax will apply to certain transfers when the sender makes the transaction with cash, a money order or a cashier’s check. For more information from the IRS: https://bit.ly/4q2uOjU