File Remittance Transfer Tax (IRS Tax No: 155)
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What is the Remittance Transfer Tax?
The Remittance Transfer Tax is a federal excise tax imposed on certain money transfers made from the United States to foreign countries. This tax applies to remittance transfers processed by U.S. financial institutions and other remittance service providers, as per Internal Revenue Code (IRC) Section 4475. It is categorized under “other excise category”, in Part I of Form 720.
Key Points to remember for all first time filers!
Tax rate: The remittance transfer tax is 1% of the total value of the transfer, as listed under IRS No. 155 on Form 720.
When tax applies:
- The tax applies to remittance transfers made by U.S. financial institutions and money transmitters.
- The tax is imposed when a remittance is transferred using covered services, including wire transfers, money orders, and similar methods.
Qualification requirements:
- The tax is applicable on all remittance transfers that meet the above criteria.
- Certain exemptions may apply depending on the nature of the transfer or the recipient's country of residence.
Who Is Responsible for Paying the Remittance Transfer Tax?
The financial institution or remittance transfer provider is responsible for paying the tax. This includes:
-
Money transmitters: These include businesses or individuals providing services to transfer money internationally.
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Banks and financial institutions These entities handle wire transfers, money orders, and similar payment methods.
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The liable party must report and remit the tax by filing Form 720 for the applicable quarter in which the transfer occurs.
Why Choose Electronic Filing for Your Remittance Transfer Tax (IRS No. 155)?
Increased Compliance and Accuracy
E-filing ensures that all tax obligations for remittance transfers are met accurately by automatically integrating the latest IRS rules and regulations into the filing process. This minimizes the risk of non-compliance or missing vital information.
Improved Record Keeping and Tracking
With electronic filing, all your submissions are stored securely in the system, allowing easy access for future reference. You can track your filing history and ensure all remittance transfers are reported correctly without worrying about losing physical records.
Time-Saving and Convenient
Electronic filing eliminates the need for outdated paper forms, mailing, and manual data entry, saving you time. You can file and make necessary amendments at your convenience, ensuring a smoother, hassle-free process for handling multiple remittance transfers in one go.
Steps to Complete Your Remittance Transfer Tax
(IRS No. 155) Filing with Simple720
STEP 1
Enter Business Details
Provide your business name, address, EIN, and contact information.
STEP 2
Tax Information
Select “Remittance Transfer Tax (155)” under the Other Excise Taxes category.
Enter
- Amount of transfer
STEP 3
Payment Information
Review the auto calculated tax amount and select your preferred payment method to finalize the filing.
Why Choose Simple720 for Filing Your Remittance Transfer Tax (IRS No. 155)?
IRS Authorized E-Filing Provider
Simple720 is an IRS-autho rized 720 e-file provider, ensuring your Remittance Transfer Tax is filed securely and in full compliance with IRS regulations. Your Form 720 filing is transmitted directly to the IRS for fast, reliable, and accurate processing.
AICPA SOC Certified for Maximum Security
Our platform adheres to AICPA SOC-certified security practices, employing advanced encryption and rigorous data protection measures. Your sensitive remittance transfer data is safeguarded throughout the entire filing process, ensuring your information remains secure.
The #1 Portal for Corporate Filings
Simple720 is the top choice for corporations handling their Remittance Transfer Tax filings. Trusted by businesses across industries, our platform simplifies the process and ensures accurate quarterly tax reporting with no hassle. Pay only for what you need, with transparent and affordable pricing.
Simple720 Vs Others
| IRS Authorized e-Filer |  |
Brand X | Brand Y | Brand Z |
|---|---|---|---|---|
| Cloud-Based | Yes | No | No | No |
| Software Download | None | Yes-PC Only | Yes | Yes |
| License | None | Required | Required | Required |
| Annual Contract | No | Required | Required | Required |
| All Excise Taxes | Yes | Fuel Taxes Only | No | No |
| Cost | $50/return | $1,000+/yr. | $1,500+/yr. | $5,000+/yr. |
What Clients Are Saying
— John D., California
Effortless Filing Process!
Simple720 made filing Remittance Transfer Tax a breeze. The platform is easy to use and ensures quick, accurate submissions.
— Sarah M., New York
Secure and Fast!
I was impressed with how secure and fast the filing process was. Simple720 made sure my remittance transfer tax was filed without any issues.
— Michael T., Texas
Highly Recommended for Corporates
Simple720 made the entire filing process seamless and efficient for our company. We trust them for all our tax reporting needs.
Frequently Asked Questions
The remittance excise tax became effective for transfers on or after January 1, 2026, and providers must report and pay it using Form 720 on a quarterly basis.
Remittance providers must collect the tax from the sender, make semimonthly deposits if liabilities exceed certain thresholds, and then file Form 720 quarterly to report and remit the excise tax to the IRS.
Yes. The IRS, through Notice 2025‑55, provided >limited penalty relief for remittance transfer providers during the first three quarters of 2026 if they make timely deposits and eventually pay the full tax due.
The Remittance Transfer Tax is calculated as 1% of the total value of the remittance transfer. This includes the entire amount sent, and the tax is paid by the transfer provider on behalf of the sender.
Apart from the Remittance Transfer Tax, there is another tax that falls under the Other Excise Tax category: Obligations Not in Registered Form (31).
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