Katie BaileyThe Internal Revenue Service (IRS) has issued proposed regulations introducing a 1% excise tax on certain remittance transfers sent from the United States to recipients abroad, which began January 1, 2026.
The tax applies to transfers funded with cash or similar instruments, such as money orders and cashier’s checks. While the sender is responsible for the tax, credit unions facilitating these transactions would be required to collect, deposit, and report it, creating new operational and compliance considerations.
Transfers funded directly from member accounts or through debit or credit cards are not included, highlighting an important distinction in how different transaction types are treated.
Electronic or written comments and requests for a public hearing must be received by Friday, June 12.
