The IRS has announced penalty relief for remittance transfer providers responsible for collecting a new 1% excise tax. These providers must collect the tax from senders and deposit it with the IRS. Specifically, the tax is levied when remittances are sent from the U.S. to recipients in foreign countries if the sender provides cash, a money order, a cashier’s check or another similar physical instrument to the remittance transfer provider. Under Notice 2026-52, providers may avoid certain deposit penalties before final regulations take effect if they make timely deposits, even if the amounts are calculated incorrectly, and pay any quarterly underpayment in full by the Form 720 filing deadline.
