The IRS has issued new guidance offering deposit penalty relief to remittance transfer providers adjusting to a recently introduced excise tax. The relief, outlined in Notice 2025-55, applies to the first three quarters of 2026 and aims to ease compliance challenges tied to the One Big Beautiful Bill Act. 

Accounting Today reports that the 1% remittance transfer tax, effective Jan. 1, 2026, applied to certain transactions made with cash, money orders, cashier’s checks or similar instruments. Providers re required to collect the tax, make semi-monthly deposits, and file quarterly returns using Form 720. The first deposit will be due Jan. 29. 

The IRS acknowledged that many providers are still working to understand and implement the new requirements. To avoid penalties, providers must make deposits on time, even if the amounts are incorrect, and pay any remaining balance by. The due date of the applicable quarterly return. The notice also allows the use of existing deposit safe harbor rules under the Excise Tax Procedural Regulations, as long as the provider meets the reasonable cause standard for any underpayment. 

By providing temporary relief, the IRS is giving remittance transfer providers more time to adapt their systems and procedures before full enforcement begins later in the year.