“To amend the Internal Revenue Code of 1986 to modify the tax on remittance transfers.”
No CRS summary available for this bill.
This section increases the excise tax rate on remittance transfers to 15% (from 1%). It establishes an exception from the tax for transfers sent by verified U.S. citizens or nationals through qualified remittance transfer providers (i.e., providers that enter a written agreement with the Secretary to verify sender citizenship or nationality status). It creates a new refundable income tax credit under §36C for eligible U.S. citizens and nationals equal to the aggregate §4475 taxes they paid during the taxable year, requiring their Social Security number (and spouse's, if married) on the return, substantiation of payment and sender certification to the provider, and application of certain married-filing-separately restrictions and anti-conduit rules. It also requires remittance transfer providers to report to the IRS on exempt transfers (aggregate number and value), transfers where senders certify intent to claim the §36C credit (sender name, address, SSN, and tax amounts), and other transfers (aggregate tax paid and remitted), with statements furnished to named senders.