---
kind: "section"
citation: "26 U.S.C. § 4475"
title: "26"
title_heading: "Internal Revenue Code"
number: "4475"
heading: "Imposition of tax"
release: "119-102"
url: "https://uscodex.org/usc/26/4475"
units:
  - "Subtitle D — Miscellaneous Excise Taxes"
  - "Chapter 36 — Certain Other Excise Taxes"
  - "Subchapter C — Remittance Transfers"
---

# §4475. Imposition of tax

- (a) **In general—** There is hereby imposed on any [remittance transfer](#e-1) a tax equal to 1 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](#e-1) shall be paid by the [sender](#e-1) with respect to such transfer.
  - (2) **Collection of tax—** The [remittance transfer provider](#e-1) with respect to any [remittance transfer](#e-1) shall collect the amount of the tax imposed under [subsection (a)](#a) with respect to such transfer from the [sender](#e-1) and remit such tax quarterly to the [Secretary](/usc/26/7701.md?p=a-11-B) at such time and in such manner as provided by the [Secretary](/usc/26/7701.md?p=a-11-B),[^1]
  - (3) **Secondary liability—** Where any tax imposed by [subsection (a)](#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](#e-1).
- (c) **Tax limited to cash and similar instruments—** The tax imposed under [subsection (a)](#a) shall apply only to any [remittance transfer](#e-1) for which the [sender](#e-1) provides cash, a money order, a cashier’s check, or any other similar physical instrument (as determined by the [Secretary](/usc/26/7701.md?p=a-11-B)) to the [remittance transfer provider](#e-1).
- (d) **Nonapplication to certain noncash remittance transfers—** [Subsection (a)](#a) shall not apply to any [remittance transfer](#e-1) for which the funds being transferred are—
  - (1) withdrawn from an account held in or by a financial institution—
    - (A) which is described in subparagraphs (A) through (H) of [section 5312(a)(2) of title 31](/usc/31/5312.md?p=a-2), United States Code, and
    - (B) that is subject to the requirements under subchapter II of [chapter 53](/usc/26/chstE-ch53.md) of such title, or
  - (2) funded with a [debit card](#e-3) or a [credit card](#e-2) which is issued in the [United States](/usc/26/7651.md?p=1).
- (e) **Definitions—** For purposes of this section—
  - (1) **In general—** The terms “remittance transfer”, “remittance transfer provider”, and “sender” shall each have the respective meanings given such terms by section 919(g) of the Electronic Fund Transfer Act ([15 U.S.C. 1693o](/usc/15/1693o.md)–1(g)).
  - (2) **Credit card—** The term “credit card” has the same meaning given such term under section 920(c)(3) of the Electronic Fund Transfer Act ([15 U.S.C. 1693o](/usc/15/1693o.md)–2(c)(3)).
  - (3) **Debit card—** The term “debit card” has the same meaning given such term under section 920(c)(2) of the Electronic Fund Transfer Act ([15 U.S.C. 1693o](/usc/15/1693o.md)–2(c)(2)), without regard to [subparagraph (B)](/usc/15/1693o.md) of such section.
- (f) **Application of anti-conduit rules—** For purposes of [section 7701(l)](/usc/26/7701.md?p=l), with respect to any multiple-party arrangements involving the [sender](#e-1), a [remittance transfer](#e-1) shall be treated as a financing transaction.

## Footnotes

[^1]: So in original. The comma probably should be a period.

## Source credit

(Added Pub. L. 119–21, title VII, § 70604(a), July 4, 2025, 139 Stat. 285.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 119–21, title VII, § 70604(c), July 4, 2025, 139 Stat. 286, provided that: “The amendments made by this section [enacting this subchapter] shall apply to transfers made after December 31, 2025.”