[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2002 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 2002
To amend the Internal Revenue Code of 1986 to establish a tax on
remittance transfers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 10, 2025
Mr. Schmitt introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax on
remittance transfers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Requiring Excise for Migrant Income
Transfers Act'' or the ``REMIT Act''.
SEC. 2. EXCISE TAX ON REMITTANCE TRANSFERS.
(a) In General.--Chapter 36 of the Internal Revenue Code of 1986 is
amended by inserting after subchapter B the following new subchapter:
``Subchapter C--Remittance Transfers
``Sec. 4475. Imposition of tax.
``SEC. 4475. IMPOSITION OF TAX.
``(a) In General.--There is hereby imposed on any remittance
transfer a tax equal to 15 percent of the amount of such transfer.
``(b) Payment of Tax.--
``(1) In general.--The tax imposed by this section with
respect to any remittance transfer shall be paid by the sender
with respect to such transfer.
``(2) Collection.--The remittance transfer provider with
respect to any remittance transfer shall collect the amount of
the tax imposed under subsection (a) with respect to such
transfer from the sender and remit such tax quarterly to the
Secretary at such time and in such manner as provided by the
Secretary.
``(3) Secondary liability.--Where any tax imposed by
subsection (a) is not paid at the time the transfer is made,
then to the extent that such tax is not collected, such tax
shall be paid by the remittance transfer provider.
``(c) Exception for Remittance Transfers Sent by Citizens and
Nationals of the United States Through Certain Providers.--
``(1) In general.--Subsection (a) shall not apply to any
remittance transfer with respect to which the remittance
transfer provider is a qualified remittance transfer provider
and the sender is a verified United States sender.
``(2) Qualified remittance transfer provider.--For purposes
of this subsection, the term `qualified remittance transfer
provider' means any remittance transfer provider which enters
into a written agreement with the Secretary pursuant to which
such provider agrees to verify the status of senders as
citizens or nationals of the United States in such manner, and
in accordance with such procedures, as the Secretary may
specify.
``(3) Verified united states sender.--For purposes of this
subsection, the term `verified United States sender' means any
sender who is verified by a qualified remittance transfer
provider as being a citizen or national of the United States
pursuant to an agreement described in paragraph (2).
``(d) Definitions.--For purposes of this section, the terms
`remittance transfer', `remittance transfer provider', `designated
recipient', and `sender' shall each have the respective meanings given
such terms by section 920(g) of the Electronic Fund Transfer Act (15
U.S.C. 1693o-1; relating to `Remittance Transfers').
``(e) Application of Anti-Conduit Rules.--For purposes of section
7701(l) with respect to any multiple-party arrangements involving the
sender, a remittance transfer shall be treated as a financing
transaction.''.
(b) Refundable Income Tax Credit Allowed to Citizens and Nationals
of the United States for Excise Tax on Remittance Transfers.--Subpart C
of part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 36B the following new
section:
``SEC. 36C. CREDIT FOR EXCISE TAX ON REMITTANCE TRANSFERS OF CITIZENS
AND NATIONALS OF THE UNITED STATES.
``(a) In General.--In the case of any individual, there shall be
allowed as a credit against the tax imposed by this subtitle for any
taxable year an amount equal to the aggregate amount of taxes paid by
such individual under section 4475 during such taxable year.
``(b) Social Security Number Requirement.--
``(1) In general.--No credit shall be allowed under this
section unless the taxpayer includes on the return of tax for
the taxable year--
``(A) the individual's social security number, and
``(B) if the individual is married, the social
security number of such individuals's spouse.
``(2) Social security number.--For purposes of this
subsection, the term `social security number' has the meaning
given such term in section 24(h)(7).
``(3) Married individuals.--Rules similar to the rules of
section 32(d) shall apply to this section.
``(c) Substantiation Requirements.--No credit shall be allowed
under this section unless the taxpayer demonstrates to the satisfaction
of the Secretary that the tax under section 4475 with respect to which
such credit is determined--
``(1) was paid by the taxpayer, and
``(2) is with respect to a remittance transfer with respect
to which the taxpayer provided to the remittance transfer
provider the certification and information referred to in
section 6050BB(a)(2).
``(d) Definitions.--Any term used in this section which is also
used in section 4475 shall have the meaning given such term in section
4475.
``(e) Application of Anti-Conduit Rules.--For rules providing for
the application of the anti-conduit rules of section 7701(l) to
remittance transfers, see section 4475(e).''.
(c) Reporting by Remittance Transfer Providers.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 6050AA. RETURNS RELATING TO REMITTANCE TRANSFERS.
``(a) In General.--Each remittance transfer provider shall make a
return at such time as the Secretary may provide setting forth--
``(1) in the case of a qualified remittance transfer
provider with respect to remittance transfers to which section
4475(a) does not apply by reason of section 4475(c), the
aggregate number and value of such transfers,
``(2) in the case of any remittance transfer not described
in paragraph (1) and with respect to which the sender certifies
to the remittance transfer provider an intent to claim the
credit under section 36C and provides the information described
in paragraph (1)--
``(A) the name, address, and social security number
of the sender,
``(B) the amount of tax paid by the sender under
section 4475(b)(1), and
``(C) the amount of tax remitted by the remittance
transfer provider under section 4475(b)(2), and
``(3) in the case of any remittance transfer not included
under paragraph (1) or (2)--
``(A) the aggregate amount of tax paid under
section 4475(b)(1) with respect to such transfers, and
``(B) the aggregate amount of tax remitted under
section 4475(b)(2) with respect to such transfers.
``(b) Statement To Be Furnished to Named Persons.--Every person
required to make a return under subsection (a) shall furnish, at such
time as the Secretary may provide, to each person whose name is
required to be set forth in such return a written statement showing--
``(1) the name and address of the information contact of
the required reporting person, and
``(2) the information described in subsection (a)(2) which
relates to such person.
``(c) Definitions.--Any term used in this section which is also
used in section 4475 shall have the meaning given such term in such
section.''.
(2) Penalties.--Section 6724(d) of the Internal Revenue
Code of 1986 is amended--
(A) in paragraph (1)(B), by striking ``or'' at the
end of clause (xxvii), by striking ``and'' at the end
of clause (xxviii) and inserting ``or'', and by adding
at the end the following new clause:
``(xxix) section 6050BB(a) (relating to
returns relating to remittance transfers),'',
and
(B) in paragraph (2), by striking ``or'' at the end
of subparagraph (KK), by striking the period at the end
of subparagraph (LL) and inserting ``, or'', and by
inserting after subparagraph (LL) the following new
subparagraph:
``(MM) section 6050BB(b) (relating to statements
relating to remittance transfers).''.
(d) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``36C,'' after ``36B,''.
(2) Section 6213(g)(2) of such Code is amended by striking
``and'' at the end of subparagraph (U), by striking the period
at the end of subparagraph (V) and inserting ``, and'', and by
inserting after subparagraph (V) the following new
subparagraph:
``(W) an omission of a correct social security
number under section 36C(b) to be included on a
return.''.
(3) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36C,'' after ``36B,''.
(4) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36B
the following new item:
``Sec. 36C. Credit for excise tax on remittance transfers of citizens
and nationals of the United States.''.
(5) The table of sections for subpart B of part III of
subchapter A of chapter 61 of such Code is amended by adding at
the end the following new item:
``Sec. 6050AA. Returns relating to remittance transfers.''.
(6) The table of subchapters for chapter 36 of such Code is
amended by inserting after the item relating to subchapter B
the following new item:
``subchapter c--remittance transfers''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
transfers made after December 31, 2025.
(2) Tax credit.--The amendments made by subsection (b), and
paragraphs (1) through (4) of subsection (d), shall apply to
taxable years ending after December 31, 2025.
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