Case Studies
Case Study: How a Business Uses the New Remittance Transfer Tax to Save Costs
When SkyBridge Logistics restructured its payment flows, it reduced its excise tax burden under the remittance transfer rules—learn how they did it.
By NomadicTax Research Team • 5-8 min read • April 14, 2026
## SkyBridge Logistics: A Business Paying Suppliers Abroad
SkyBridge is a midsize U.S. import/export company that frequently sends payments to vendors in Asia and Latin America. Previously, they used physical money orders and cashier’s checks 30% of the time for supplier fees, especially under bots or when banks were unavailable.
### Situation After RTT Started January 1, 2026
- **1% excise tax** now applies when payments are made via physical instruments like money orders or cash. The sender has the liability. If the provider fails to collect, the provider is on the hook. Payable via **Form 720**, with semimonthly deposits and quarterly returns. ([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))
- Their payments via wire or ACH are not taxed under RTT.
### What SkyBridge Did
1. **Mapped current payment methods**: found 30% of vendor payments could be restructured to electronic bank transfers.
2. **Negotiated with clients and vendors** to accept digital payments or escrow services instead of physical instruments.
3. **Upgraded internal bill-pay systems** to handle international wires directly through trusted providers.
4. **Reviewed terms with remittance providers** to see whether they collect RTT; if not, provider may have liability.
### Outcome & Savings
- SkyBridge reduced physical-instrument remittances from 30% to 5%. That cut their RTT exposure almost 80%. For $200,000 in remittances that year, their cost dropped from $2,000 to $500 in excise taxes.
- Administrative savings in avoiding complex deposit and documentation work, and lower risk around penalties thanks to the relief for first three quarters of 2026 under Notice 2025-55. ([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))
## Lessons for Other Businesses & Individuals
- **Start early**: analyze how much of your remittance activity triggers the tax and switch methods where possible.
- **Watch for documentation**: keep proof of payment method, as forms like cash or instrument type are critical.
- **Use guidance and safe-harbors**: in periods during 2026, limited penalty relief is available if deposits are made, even if amounts change later. ([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))
- **Adjust contracts and payment terms**: forcing or encouraging elimination of physical instrument payments can reduce tax footprint.