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22 May 2025

House-passed tax bill changes proposed excise tax for remittance transfers to 3.5%

On May 22, 2025, the House approved H.R. 1, which consists of the underlying budget reconciliation bill and the manager's amendment. The bill would create a new IRC Section 4475 imposing an excise tax on remittance transfers from an individual to a foreign recipient. The manager's amendment changed the excise tax from 5% to 3.5%. Nothing else in the proposed excise tax was changed (see Tax Alert 2025-1108).

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Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

Document ID: 2025-1116

 

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