Tax Planning
Advanced Tax Planning Strategies with the ‘One, Big, Beautiful Bill’
Learn how new U.S. legislation—especially the remittance transfer tax and excise duty changes—affects cross-border remitters and international income.
By NomadicTax Research Team • 5-8 min read • May 28, 2026
## What’s in the One, Big, Beautiful Bill (OBBB)
Over 2025-2026, the U.S. government passed sweeping changes under the OBBB that affect many taxpayers globally, particularly for remittances, foreign income, and excise taxes. Two policies stand out:
- **Remittance Transfer Tax**: Starting January 1, 2026, a 1% excise tax applies when cash-like instruments are used to send remittances abroad. Remittance providers may have to collect and remit tax. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
- **Excise Tax on Dyed Fuel & Environmental Taxes**: New rules allow recovery of certain excise taxes and introduce requirements under the remittance tax and other issuer obligations. ([irs.gov](https://www.irs.gov/newsroom?utm_source=openai))
## Planning for Cross-Border Transactions & Remittances
| Scenario | Potential Liability | Strategies to Reduce Cost |
|----------|--------------------|----------------------------|
| Individuals sending remittances via cash or cashier’s check | May incur **1% remittance transfer tax** and possible collection and reporting burdens | Use wire transfers or fees by banks; choose instruments that are *not* defined as “physical” instruments under OBBB. Work with remittance providers early. |
| Businesses or NGOs receiving or transmitting large remittances | Providers may be fined unless they collect tax; quarterly excise reporting needed | Build compliance process: ensure provider delivers required information; maintain records to avoid liability. |
## Use of Excise and Fuel-Related Relief
The OBBB also expands excise tax relief options:
- If you purchase dyed fuel or are involved with emissions-taxable fuel, you might qualify for **temporary regulations or notice relief**. ([irs.gov](https://www.irs.gov/newsroom?utm_source=openai))
- Farmers and fishermen can have waivers on underpayment penalties of estimated tax, particularly when paying full tax due by April 15. ([irs.gov](https://www.irs.gov/irb/2026-17_IRB?utm_source=openai))
## Actionable Insights
1. **Audit your payment channels**: Identify how your remittance or transaction instruments are defined. This can determine who bears the tax (sender vs. provider).
2. **Review internal control systems**: Tracking excise tax deposits, remittance amounts, and due dates (semimonthly/quarterly) is crucial.
3. **Stay ahead of proposed regulations**: Public comments often affect outcomes (e.g. Treasury/IRS requested comments by June 12, 2026 for remittance tax rules). Participate if applicable. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
4. **Seek relief in disaster zones**: If you're operating or living in areas hit by natural disasters, deadline extensions and penalty abatements may be available. ([irs.gov](https://www.irs.gov/newsroom/irs-announces-tax-relief-for-taxpayers-impacted-by-wildfires-in-southeast-georgia-various-deadlines-postponed-to-aug-20?utm_source=openai))