Remittance Transfer Tax: What Businesses Should Know
What Is It?
Under the One, Big, Beautiful Bill, as of January 1, 2026, a 1% excise tax on remittance transfers applies when a sender uses cash, money order, cashier’s check, or similar physical instruments to send money overseas. The sender is liable; remittance transfer providers are tasked with collecting the tax, making semimonthly deposits, and filing quarterly returns on Form 720.(irs.gov)
Regulatory Guidance & Compliance
The IRS/Treasury issued proposed regulations clarifying definitions, thresholds, and examples around the remittance transfer tax. Key areas under consideration include what counts as a “physical instrument” and which transfers are exempt. Comments were due by June 12, 2026.(irs.gov)
Action Steps for Businesses
- Review your remittance products and contracting to determine if you're a provider or sender.
- Update system software to track, collect, and remit the correct amount.
- Understand reporting requirements under Form 720.
- Monitor final regulation publication to adjust compliance practices accordingly.
Permanent 100% Bonus Depreciation under Section 168(k)
What Changed?
The OBBB made the 100% additional first-year depreciation deduction under IRC § 168(k) permanent for qualified property and specified plants acquired after January 19, 2025. It removes the previous phase-out deadlines.(irs.gov)
What Businesses Should Do Now
- If you're acquiring or is constructing property after that date, evaluate whether those assets qualify for 168(k).
- For sound recording productions, amended definitions now treat their placement in service as the date of initial broadcast or release.(irs.gov)
- Structuring capital expenditures: acquiring earlier or later than certain dates no longer changes 168(k) eligibility, simplifying planning.
Examples
A manufacturing business placing new machinery in service in 2026 can immediately deduct 100% of the cost. A small audio recording label releasing new sound recordings after July 4, 2025, may claim bonus depreciation starting upon release—something that was previously unavailable."
Compliance Calendar & Internal Audit
- Update accounting and tax calendars so the remittance tax starts being collected as required, and depreciation rules accounted for.
- Perform internal compliance reviews or consult CPA to confirm tax treatment.
- Keep full documentation of asset acquisition dates and usage, and contracts for remittance services.
Summary
These two businesses changes—the remittance transfer tax and permanent bonus depreciation—are significant shifts. They simplify depreciation planning but also add a new compliance burden. Ensuring readiness now can avoid penalties, audits, and missed tax savings.