The IRS and Treasury issued guidance on Tuesday, Oct. 7, that provides deposit penalty relief for the first three quarters of 2026 to remittance transfer providers.
Notice 2025-55 provides relief in connection with the new 1% excise tax imposed on certain remittance transfers under the One Big Beautiful Bill Act. The tax applies to remittance transfers made after Dec. 31, 2025.
The notice provides limited penalty relief for remittance transfer providers who fail to deposit the correct amount of remittance transfer tax as required during the first three quarters of 2026.
The guidance also states that remittance transfer providers can use the deposit safe harbor rules under the excise tax procedural regulations even if there was an underpayment of required deposits of the remittance transfer tax for the first three quarters of 2026. Read more.