The One Big Beautiful Bill Act (OBBBA), enacted in 2025, introduced a new 1 percent excise tax on certain remittance transfers effective January 1, 2026. In conjunction with this change, the Internal Revenue Service updated Form 8849 in May 2026 by adding Schedule 6 to allow claims for refunds of the excise tax paid on cancelled or expired remittance transfers. This publication reflects tax law and regulations applicable as of May 2026 and is subject to change without notice.
This article examines the procedures for claiming refunds of OBBBA remittance excise taxes using new Schedule 6 (Form 8849) for cancelled or expired transfers, the 1 percent excise tax rules, eligibility criteria, documentation requirements, and procedural deadlines.
Claiming Refunds with Schedule 6 (Form 8849)
Taxpayers who paid the OBBBA 1 percent remittance excise tax on a transfer that was subsequently cancelled or expired may claim a refund by completing and filing Schedule 6 (Form 8849), Claim for Refund of Excise Taxes (accessed May 25, 2026). The schedule requires the taxpayer to report the amount of tax paid, the date of the original transfer, the reason for cancellation or expiration, and supporting documentation from the remittance provider.
OBBBA 1% Excise Tax on Remittance Transactions
Under OBBBA, a 1 percent excise tax applies to certain remittance transfers made in cash, by money order, or by cashier's check. The tax is imposed on the provider of the remittance service and is collected from the sender at the time of the transaction. The tax applies to transfers sent from the United States to recipients outside the United States. Providers are responsible for remitting the collected tax to the IRS, generally on Form 720, Quarterly Federal Excise Tax Return (accessed May 25, 2026). The tax does not apply to electronic funds transfers, wire transfers through established financial institutions, or certain exempt transactions.
Refund claims using Schedule 6 (Form 8849) must generally be filed within the applicable statute of limitations, typically three years from the date the tax was paid. Remittance providers are required to furnish documentation confirming the original payment and the cancellation or expiration of the transfer. Failure to retain or provide required documentation may result in disallowance of the refund claim.
Compliance Resources and Tools
Official IRS forms and instructions, including Form 8849 with Schedule 6, Form 720, and IRS Publication 510 (all accessed May 25, 2026), are available on IRS.gov.
- Schedule 6 (Form 8849) allows taxpayers to claim refunds of the OBBBA 1 percent remittance excise tax paid on cancelled or expired transfers.
- The 1 percent excise tax applies to certain cash, money order, and cashier's check remittance transfers sent from the United States to foreign recipients.
- Remittance service providers are responsible for collecting and remitting the excise tax to the IRS.
- Refund claims require documentation from the provider confirming the original transaction and its cancellation or expiration.
- Claims must be filed within the applicable statute of limitations, typically three years from the payment date.
- The new Schedule 6 streamlines the refund process for qualifying remittance excise tax overpayments.
References
- Internal Revenue Service. (2026). Instructions for Form 8849 and Schedule 6. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/instructions/i8849.
- Internal Revenue Service. (2026). Form 8849 – Claim for Refund of Excise Taxes. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/forms-pubs/about-form-8849.
- Internal Revenue Service. (2026). Publication 510: Excise Taxes. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/publications/p510.
- Internal Revenue Service. (2026). Form 720 – Quarterly Federal Excise Tax Return. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/forms-pubs/about-form-720.
- Internal Revenue Service. (2026). IR-2026-78: Updates to Form 8849 and Schedule 6. IRS.gov. Accessed May 25, 2026. https://www.irs.gov/newsroom.
The information contained in this publication is provided for educational and general informational purposes only. It does not constitute tax advice, accounting advice, legal advice, or any other form of professional advice and does not create a client-professional relationship.
The content reflects tax law and regulations applicable on the date of publication only and is subject to change without notice. Examples and illustrations are hypothetical and do not represent any specific taxpayer situation.
No reader should act or refrain from acting on the basis of this publication without first obtaining specific written advice from a licensed CPA based on the reader's individual facts and circumstances.
Any federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
Parsi Team Specific Notice: This publication was prepared by non-licensed content personnel under the direct supervision and final approval of a licensed CPA. The reviewing CPA assumes professional responsibility for the technical accuracy and compliance of the content.