Remittance Transfer Tax (IRS No. 155): The Complete 2026 Filing Guide
What the tax is — and why it exists
The One Big Beautiful Bill Act of 2025 added Section 4475 to the Internal Revenue Code, creating a 1% excise tax on the gross amount of certain remittance transfers. To collect it, the IRS introduced a brand-new line — IRS No. 155 — on the June 2026 revision of Form 720. It is the headline addition to the form this year.
Which transfers are taxed
The trigger is how the sender pays, not where the money goes. The 1% applies when a transfer is funded with:
- Cash
- A money order
- A cashier's check
- A similar physical instrument
Transfers funded directly from a U.S. bank account or a U.S.-issued debit/credit card are generally outside scope. The precise boundaries are set by §4475 and IRS guidance, so get counsel review on edge cases for your specific products.
Who collects and files it
The obligation falls on remittance transfer providers — businesses that, for compensation, transmit money on behalf of consumers to recipients outside the United States:
- Money transfer operators accepting cash for cross-border transfers.
- Retail money services businesses (MSBs) — stores and check-cashing locations acting as remittance agents.
- Banks that accept walk-in cash to send international wires for non-customers.
How to deposit and file
IRS No. 155 is a Part I item, so it follows the standard semimonthly deposit cadence plus quarterly reporting:
- Track taxable transfers by semimonthly period (the 1st–15th and the 16th–end of each month).
- Deposit 1% of the period's taxable amount via EFTPS by the 14th day after the period closes (deposits are required when net Part I liability exceeds $2,500 for the quarter).
- Report quarterly on Form 720 — enter the taxable amount on the IRS No. 155 line; the 1% computes automatically, and Schedule A captures your semimonthly liability.
- E-file the return directly to the IRS.
Key dates: the first semimonthly deposit was due January 29, 2026; the Q1 2026 return was due April 30, 2026. The IRS granted limited penalty relief for Q1–Q3 2026 deposits — but it covers penalties, not the tax itself, so don't skip the deposits.
A quick example
For the full breakdown — quick-reference facts, who-files detail, and step-by-step filing — see our Remittance Transfer Tax filing guide.
FAQ
What is the remittance transfer tax (IRS No. 155)?▼
It is a new 1% federal excise tax on certain remittance transfers, created by IRC §4475 under the One Big Beautiful Bill Act of 2025. It applies to transfers occurring after December 31, 2025 and is reported on Form 720, Part I, under the new IRS No. 155 line added in the June 2026 revision.
How much is the remittance transfer tax?▼
It is 1% of the gross amount of each taxable remittance transfer — for example, $5 on a $500 cash-funded transfer. There is no minimum or threshold transfer amount.
Which transfers are taxed?▼
The 1% tax applies when the sender funds the transfer with cash, a money order, a cashier's check, or a similar physical instrument. Transfers funded from a U.S. bank account or a U.S.-issued debit/credit card are generally outside scope, though the precise contours are set by §4475 and IRS guidance.
Who has to file IRS No. 155?▼
Remittance transfer providers — money transfer operators, retail money services businesses (MSBs), and other licensed providers that accept cash or other physical-instrument funding for cross-border transfers. The provider collects the tax from the sender, deposits it, and files quarterly on Form 720.
Is there penalty relief for 2026?▼
Yes. The IRS provided limited penalty relief for remittance transfer tax deposits in the first, second, and third calendar quarters of 2026, recognizing that providers need time to update systems. Relief covers penalties, not the underlying tax.
File IRS No. 155 with EasyFile720
Auto-calculation of the 1% tax, Schedule A liability tracking, and IRS-authorized e-file — all in one workflow alongside your other Form 720 taxes.
This article reflects IRC §4475 (One Big Beautiful Bill Act of 2025) and the Instructions for Form 720 (Rev. June 2026). The scope of taxable transfers is set by statute and IRS guidance; consult a qualified tax professional for your specific products. General information, not tax advice.
