Excise Tax on Remittance Transfers

INFiN, a national trade association representing financial services providers, supports the federal goal of improving tax compliance but urges the IRS to modify the proposed rule to be more equitable for unbanked and underbanked consumers. They specifically request modifications to the refund process for canceled transfers, a shift to quarterly tax reporting, and a more nuanced "intent" test for the "principal purpose" rule regarding prepaid cards.

U.S. Money Express Co., a state-regulated money transmitter, supports the proposed excise tax but requests a provider-level adjustment mechanism for uncompleted transfers. They argue that allowing providers to refund the tax directly to customers and claim corresponding credits would improve the consumer experience, simplify compliance for various business sizes, and reduce the administrative burden on the IRS.