Compliance

Compliance Checklist for U.S. Businesses: New Remittance Transfer Tax and Depreciation Rules

Businesses need to be aware of two new regulatory developments: a 1% remittance transfer tax starting in 2026 and permanent changes to first-year bonus depreciation under Section 168(k).

By NomadicTax Research Team • 5-8 min read • June 24, 2026

## 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](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)) ### 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](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)) ### 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](https://www.irs.gov/irb/2026-06_IRB?utm_source=openai)) ### 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](https://www.irs.gov/irb/2026-06_IRB?utm_source=openai)) - 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.