Bill > S2002

This bill establishes a new 15 percent excise tax on remittance transfers (money sent by individuals in one country to recipients in another country), which would be paid by the sender and collected by the remittance transfer provider. The bill includes an exception for U.S. citizens and nationals who send money through "qualified remittance transfer providers" that verify the sender's U.S. citizenship status. To offset the tax burden, the bill creates a refundable income tax credit for U.S. citizens and nationals, allowing them to recover the full amount of the excise tax paid during the tax year. To claim the credit, taxpayers must provide their social security number and substantiate the payment with documentation from the remittance transfer provider. The bill also requires remittance transfer providers to report detailed information about these transfers to the Internal Revenue Service, including aggregate transfer amounts, sender information, and tax collected. The new tax and reporting requirements would take effect for transfers made after December 31, 2025, giving businesses and individuals time to prepare for the changes. The goal appears to be generating revenue from international money transfers while providing a mechanism for U.S. citizens to recoup the tax expense.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2002/all-info