Requiring Excise for Migrant Income Transfers Act” or the “REMIT Act.

The "Requiring Excise for Migrant Income Transfers Act" (REMIT Act) significantly amends the Internal Revenue Code of 1986 by increasing the excise tax on remittance transfers. Specifically, it raises the tax rate from the current 1 percent to a substantial 15 percent of the transfer amount. This change aims to generate increased revenue from these financial transactions. To mitigate the impact on U.S. citizens and nationals, the bill introduces two key provisions. First, it creates an exception for transfers made by verified U.S. citizens or nationals through qualified remittance transfer providers who agree to verify sender status. Second, it establishes a new refundable income tax credit allowing U.S. citizens and nationals to reclaim the excise tax paid on their remittance transfers, provided they meet specific substantiation and Social Security Number requirements. Furthermore, the legislation mandates new reporting requirements for all remittance transfer providers. These providers must report aggregate data for exempt transfers and detailed information, including sender names, addresses, and Social Security Numbers, for transfers where senders intend to claim the tax credit. This comprehensive reporting aims to ensure compliance and facilitate the administration of the new tax and credit provisions.