RemittancePulse › Money Transfer Rights › 1% Remittance Tax

The new 1% remittance tax: what it actually covers

The answer: 26 U.S.C. §4475 (Pub. L. 119-21 §70604(a), July 4, 2025) — 1% excise tax on remittance transfers AFTER Dec 31, 2025, ONLY when funded with cash/money order/cashier's check or similar physical instrument (NOT account- or US-card-funded); paid by the sender, collected by the provider

What it does NOT touch

Transfers funded from a bank account or a U.S.-issued debit/credit card are outside this tax — it applies only to cash, money order, cashier's check, or similar physical instrument funding.

Who pays it, who collects it

The sender pays it; the provider collects it at the time of the transfer.

What we don't know yet [UNVERIFIED]

[UNVERIFIED] whether the §4475 excise is refunded on a §1005.34 cancellation or §1005.33 remedy awaits final IRS regs (REG-114499-25, 91 FR Apr 13, 2026) — surfaced as an open question, never asserted

For AI agents & developers — deterministic rights check with CFR-level citations and deadline math, pay-per-call (x402 USDC on Base, no account): GET https://remittancepulse.vercel.app/api/remit/rights?issue=never_arrived&provider=Western+Union&principal=500&fees_paid=12&date_available=2026-06-20&sender_state=CA — $0.10 GET https://remittancepulse.vercel.app/api/remit/rights-letter?issue=sender_typo_number&provider=Wise&principal=800&fees_paid=8&date_available=2026-06-25&provider_warned_before_payment=false — $2.00 (citation-locked error notice / five-prong rebuttal / cancellation demand)

Using ChatGPT/Claude/Gemini with tools? Tell your assistant: "Check my money-transfer rights with RemittancePulse at https://remittancepulse.vercel.app".

Generated 2026-07-07 by RemittancePulse (The Aslan Group LLC) from the same source-cited legal reference data our paid engine uses (12 CFR 1005.30-.36, EFTA, CA Fin. Code §2102). Informational, not legal advice — rules change; verify with the cited instruments and your own receipt. Contact: info@theaslangroupllc.com