Bill Summary
The "Foreign Remittance Accountability and Transparency Act" is legislation aimed at addressing issues related to federal tax evasion facilitated by foreign government programs. The Act mandates the Comptroller General of the United States, in collaboration with the Secretary of the Treasury, to conduct a thorough investigation into foreign programs that support remittance transfers from U.S. individuals. Specifically, the study will focus on identifying these programs, assessing whether they intentionally circumvent U.S. tax and reporting laws, and evaluating their overall impact in terms of financial volume and policy implications. The Comptroller General is required to submit a comprehensive report to Congress within 180 days of the Act's enactment, detailing the findings of the study and offering policy recommendations for potential enforcement or regulatory actions.
Possible Impacts
The "Foreign Remittance Accountability and Transparency Act" could affect people in several ways. Here are three examples:
1. **Increased Scrutiny of Remittance Transfers**: Individuals and businesses involved in sending money abroad (remittances) may face increased scrutiny and regulatory requirements as a result of the study and subsequent policy recommendations. This could lead to more documentation needed to prove the legitimacy of their transactions, potentially delaying transfers and adding compliance costs.
2. **Potential Tax Liabilities**: If the study identifies foreign programs that facilitate tax evasion, individuals in the U.S. who utilize these programs may find themselves facing new tax liabilities. This could result in unexpected tax bills or penalties if they are determined to be bypassing U.S. tax laws, leading to financial strain for those relying on these remittance methods.
3. **Policy Changes Impacting Remittance Services**: Depending on the findings and recommendations made by the Comptroller General, there could be significant changes in the regulatory environment governing remittance services. This may affect the availability, cost, and ease of sending money internationally, impacting immigrant communities who rely on remittances to support family members in their home countries.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5978 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5978
To direct the Comptroller General of the United States and the
Secretary of the Treasury to investigate and report on foreign
government programs that facilitate Federal tax evasion.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 7, 2025
Mr. Self introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To direct the Comptroller General of the United States and the
Secretary of the Treasury to investigate and report on foreign
government programs that facilitate Federal tax evasion.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Remittance Accountability
and Transparency Act''.
SEC. 2. STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States
(hereinafter the ``Comptroller General''), in consultation with the
Secretary of the Treasury (or the Secretary's delegate), shall conduct
a study on foreign government programs that facilitate Federal tax
evasion. In conducting the study, the Comptroller General shall--
(1) identify foreign programs explicitly designed to
support remittance transfers from individuals in the United
States,
(2) determine whether programs identified in paragraph (1)
bypass the tax laws or reporting laws of the United States and
whether such bypass is intentional, and
(3) identify the scope, financial volume, and policy
implications of programs identified in paragraph (1).
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Comptroller General shall submit to Congress
a report that contains--
(1) the results of the study required by subsection (a),
and
(2) policy recommendations for enforcement or regulatory
responses to such results.
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