Overview
- The levy applies to international transfers of $15 or more sent in cash, by check or via postal money order through money transfer companies.
- Electronic channels such as bank transfers, debit or credit cards, digital wallets and prepaid cards are exempt under Section 4475.
- Providers like Western Union and MoneyGram must collect the 1% at the point of transfer and report amounts to the IRS quarterly.
- Full enforcement is scheduled to begin in the fourth quarter after the penalty relief period ends.
- The policy affects an estimated 49 million people regardless of immigration status and is projected to raise about $10 billion over the next decade.