Non-Cash Remittance Tax Exclusion

§ 4475. Imposition of tax(a) In generalThere is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer. (b) Payment of tax(1) In generalThe tax imposed by this section with respect to any remittance transfer shall be paid by the sender with respect to such transfer. (2) Collection of taxThe remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary,11 So in original. The comma probably should be a period. (3) Secondary liabilityWhere any tax imposed by subsection (a) is not paid at the time the transfer is made, then to the extent that such tax is not collected, such tax shall be paid by the remittance transfer provider. (c) Tax limited to cash and similar instrumentsThe tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier’s check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider. (d) Nonapplication to certain noncash remittance transfersSubsection (a) shall not apply to any remittance transfer for which the funds being transferred are—(1) withdrawn from an account held in or by a financial institution—(A) which is described in subparagraphs (A) through (H) of section 5312(a)(2) of title 31, United States Code, and (B) that is subject to the requirements under subchapter II of chapter 53 of such title, or (2) funded with a debit card or a credit card which is issued in the United States. (e) DefinitionsFor purposes of this section—(1) In generalThe terms “remittance transfer”, “remittance transfer provider”, and “sender” shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–1(g)). (2) Credit cardThe term “credit card” has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(3)). (3) Debit cardThe term “debit card” has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act (15 U.S.C. 1693o–2(c)(2)), without regard to subparagraph (B) of such section. (f) Application of anti-conduit rulesFor purposes of section 7701(l), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction. (Added Pub. L. 119–21, title VII, § 70604(a), July 4, 2025, 139 Stat. 285.) Statutory Notes and Related Subsidiaries Effective DatePub. L. 119–21, title VII, § 70604(c), July 4, 2025, 139 Stat. 286, provided that: “The amendments made by this section [enacting this subchapter] shall apply to transfers made after December 31, 2025.”