Remittance Transfer Tax 2026 — Form 720, IRS No. 155
The One Big Beautiful Bill Act of 2025 created a new 1% federal excise tax on certain remittance transfers under IRC §4475. Effective for transfers after December 31, 2025, remittance providers must collect, deposit, and report the tax quarterly on Form 720, Part I, line 155.
- 1% tax on remittance transfers funded with cash, money order, or cashier's check
- Effective for transfers after December 31, 2025
- Quarterly filing on Form 720 with semimonthly EFTPS deposits
- Limited penalty relief for Q1–Q3 2026 deposits (per IRS guidance)
What is the Remittance Transfer Tax?
Section 4475 of the Internal Revenue Code, added by the One Big Beautiful Bill Act of 2025, imposes a 1% federal excise tax on the gross amount of certain remittance transfers occurring after December 31, 2025. The tax is reported on Form 720, Part I, under the new IRS No. 155 line item — added to the form by the IRS in its June 2026 revision.
What triggers the tax
A remittance transfer where the sender funds the transaction with cash, a money order, a cashier's check, or a similar physical instrument. Bank-account-funded and card-funded transfers are generally outside scope, though the precise contours are set by Section 4475 and IRS guidance.
Who pays the tax
The remittance transfer provider — money transfer operators, MSBs, and other licensed providers. The provider collects the tax from the sender at the time of the transfer, deposits it, and files quarterly on Form 720.
When it took effect
The tax applies to remittance transfers occurring on or after January 1, 2026. The first semimonthly deposit was due January 29, 2026. Q1 2026 Form 720 filings are due April 30, 2026.
Penalty relief
The IRS has provided limited penalty relief for remittance transfer tax deposits during Q1, Q2, and Q3 of 2026. This recognizes the operational complexity of standing up new tax-collection infrastructure mid-year.
Who Files IRS No. 155?
Remittance transfer providers — companies that for compensation transmit money on behalf of consumers to recipients located outside the United States — are responsible for collecting, depositing, and reporting the 1% tax.
Money transfer operators
Licensed remittance providers (e.g., Western Union, MoneyGram, Ria, Remitly cash counters) that accept cash funding for cross-border transfers must collect and remit the 1% tax.
Retail money services businesses (MSBs)
Convenience stores, supermarkets, and check-cashing locations that act as agents for remittance services and accept cash, money orders, or cashier's checks for cross-border transfers.
Banks offering counter-funded remittances
Bank branches that accept walk-in cash to send international wires on behalf of non-customers may fall within scope. Consult counsel for the precise determination on your products.
Filing IRS No. 155 on Form 720
The remittance transfer tax follows the standard Form 720 Part I quarterly cadence — same deposit rules, same Schedule A liability tracking, same e-file submission flow.
Track taxable remittances each semimonthly period
Identify remittance transfers funded with cash, money order, cashier's check, or similar physical instruments. Sum the gross amounts per semimonthly period (1st–15th and 16th–end of month).
Deposit 1% via EFTPS by the 14th day after each period
For each semimonthly period, deposit 1% of the taxable remittance amount via EFTPS by the 14th day of the following period. Penalty relief applies for Q1–Q3 2026 — see IRS.gov/RemittanceTaxPenaltyRelief.
Report on Form 720 quarterly
On the quarterly Form 720, enter the taxable amount on the IRS No. 155 line. The form computes 1% automatically. Schedule A captures your semimonthly liability profile.
E-file via EasyFile720
EasyFile720 transmits your completed Form 720 (including IRS No. 155, Schedule A, and any other Part I/II liabilities) directly to the IRS.
Remittance transfer tax — common questions
What is the remittance transfer tax (IRS No. 155)?▼
IRS No. 155 is a new line item on the IRS Form 720 June 2026 revision. It corresponds to a 1% federal excise tax on certain remittance transfers, created by Section 4475 of the Internal Revenue Code under the One Big Beautiful Bill Act of 2025. The tax applies to remittance transfers occurring on or after January 1, 2026.
Which remittance transfers are taxed?▼
The 1% tax applies when the sender funds the transfer using cash, a money order, a cashier's check, or a similar physical instrument. Transfers funded directly from a U.S. bank account or U.S.-issued debit/credit card are generally outside the scope of the tax. The exact contours are set by Section 4475; consult IRS guidance for edge cases.
Who must file IRS No. 155 on Form 720?▼
Remittance transfer providers — companies that for compensation transmit money on behalf of consumers to recipients located outside the United States. This includes money transfer operators, retail money services businesses (MSBs), and other licensed remittance providers that accept cash or other physical-instrument funding.
How often does IRS No. 155 need to be filed?▼
Quarterly, on Form 720. You report the total amount of taxable remittance transfers in the calendar quarter and remit 1% as the tax. Like other Part I taxes, semimonthly EFTPS deposits are required if your net liability exceeds $2,500 for the quarter.
How much is the remittance transfer tax and how is it calculated?▼
The tax is 1% of the gross amount of each taxable remittance transfer — for example, $5 on a $500 cash-funded transfer. The provider calculates 1% of the total taxable transfers in each semimonthly period, deposits that amount via EFTPS, and reports the quarterly total on Form 720 under IRS No. 155. There is no minimum or threshold transfer amount.
Is there penalty relief for early 2026 filings?▼
Yes. The IRS has provided limited penalty relief related to remittance transfer tax deposits for the first, second, and third calendar quarters of 2026 — recognizing that providers need time to update systems for the new tax. See IRS.gov/RemittanceTaxPenaltyRelief for the official guidance.
How does EasyFile720 handle IRS No. 155?▼
EasyFile720 includes IRS No. 155 in our Form 720 e-filing workflow with auto-calculation (1% × taxable amount), Schedule A integration for semimonthly liability tracking, and direct e-filing as an IRS-authorized e-file provider. We are tracking IRS guidance updates and will reflect any rule changes as guidance is published.
Need to file IRS No. 155 this quarter?
EasyFile720 supports IRS No. 155 with auto-calculation, Schedule A integration, and IRS-authorized e-file submission — all in one workflow alongside your other Form 720 tax categories.