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United States Code Title 26 — Internal Revenue Code

§ 4475. Imposition of tax

§ 4475.

Imposition of tax

(a)

In general

There is hereby imposed on any remittance transfer 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 shall be paid by the sender with respect to such transfer.

(2)
Collection of tax

The remittance transfer provider with respect to any remittance transfer shall collect the amount of the tax imposed under subsection (a) with respect to such transfer from the sender and remit such tax quarterly to the Secretary at such time and in such manner as provided by the Secretary,11  So in original. The comma probably should be a period. So in original. The comma probably should be a period.

(3)
Secondary liability

Where any tax imposed by subsection (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.

(c)

Tax limited to cash and similar instruments

The tax imposed under subsection (a) shall apply only to any remittance transfer for which the sender provides cash, a money order, a cashier’s check, or any other similar physical instrument (as determined by the Secretary) to the remittance transfer provider.

(d)

Nonapplication to certain noncash remittance transfers

Subsection (a) shall not apply to any remittance transfer 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withdrawn from an account held in or by a financial institution—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, United States Code, and

(B)

that is subject to the requirements under subchapter II of chapter 53 of such title, or

(2)

funded with a debit card or a credit card which is issued in the United States.

(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–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–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–2(c)(2)), without regard to subparagraph (B) of such section.

(f)

Application of anti-conduit rules

For purposes of section 7701(l), with respect to any multiple-party arrangements involving the sender, a remittance transfer shall be treated as a financing transaction.