H.R. 5595

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5595 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5595

To amend the Internal Revenue Code of 1986 to modify the tax on 
remittance transfers.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 26, 2025

Mr. McGuire introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to modify the 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. MODIFICATION OF TAX ON REMITTANCE TRANSFERS.

(a) Increase in Rate of Tax.--Section 4475(a) of the Internal 
Revenue Code of 1986 is amended by striking ``1 percent'' and inserting 
``15 percent''.
(b) Exception for Remittance Transfers Sent by Citizens and 
Nationals of the United States Through Certain Providers.--Section 4475 
of such Code is amended by redesignating subsections (d) through (f) as 
subsections (e) through (g), respectively, and by inserting after 
subsection (b) the following new subsection:
``(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).''.
(c) Refundable Income Tax Credit Allowed to Citizens and Nationals 
of the United States for Excise Tax on Remittance Transfers.--
(1) In general.--Subpart C of part IV of subchapter A of 
chapter 1 of such Code 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(g).''.
(2) Conforming amendments.--
(A) Section 6211(b)(4)(A) of such Code is amended 
by inserting ``36C,'' after ``36B,''.
(B) Section 6213(g)(2) of such Code is amended by 
striking ``and'' at the end of subparagraph (Z), by 
striking the period at the end of subparagraph (AA) and 
inserting ``, and'', and by inserting after 
subparagraph (AA) the following new subparagraph:
``(BB) an omission of a correct social security 
number under section 36C(b) to be included on a 
return.''.
(C) Section 1324(b)(2) of title 31, United States 
Code, is amended by inserting ``36C,'' after ``36B,''.
(D) 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.''.
(d) Reporting by Remittance Transfer Providers.--
(1) In general.--Subpart B of part III of subchapter A of 
chapter 61 of such Code is amended by adding at the end the 
following new section:

``SEC. 6050BB. 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 such Code is amended--
(A) in paragraph (1)(B), by striking ``or'' at the 
end of clause (xxviii), by striking ``and'' at the end 
of clause (xxix) and inserting ``or'', and by adding at 
the end the following new clause:
``(xxx) section 6050BB(a) (relating to 
returns relating to remittance transfers),'', 
and
(B) in paragraph (2), by striking ``or'' at the end 
of subparagraph (LL), by striking the period at the end 
of subparagraph (MM) and inserting ``, or'', and by 
inserting after subparagraph (MM) the following new 
subparagraph:
``(NN) section 6050BB(b) (relating to statements 
relating to remittance transfers).''.
(3) Clerical amendment.--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.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this 
subsection, the amendments made by this section shall take 
effect as if included in section 70604 of Public Law 119-21.
(2) Tax credit.--The amendments made by subsection (c) 
shall apply to taxable years ending after December 31, 2025.
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