Overview
- IRS guidance confirms the levy starts January 1, 2026, on remittances funded with cash, money orders, cashier’s checks or similar physical instruments.
- Remittance firms must collect the tax, make semi‑monthly deposits, and file quarterly Form 720 returns, with the first deposit due January 29, 2026.
- Notice 2025-55 offers limited penalty relief for underpaid deposits in the first three quarters of 2026 when providers can show reasonable cause.
- Transfers funded from U.S. bank accounts or U.S.-issued debit or credit cards are exempt, and analysts expect shifts toward cards, digital wallets and even stablecoins.
- Estimates point to less than $10 billion in U.S. revenue over a decade and suggest about 60% of Mexico-bound transfers could be taxed (~$360 million in 2026), though electronic routing classifications have sown confusion over what counts as cash‑originated.