diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index 198ceb2b8172..ff0b412a7096 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -65,6 +65,20 @@ Onyx.connect({
     },
 });
 
+let allPolicyTags = {};
+Onyx.connect({
+    key: ONYXKEYS.COLLECTION.POLICY_TAGS,
+    waitForCollectionCallback: true,
+    callback: (value) => {
+        if (!value) {
+            allPolicyTags = {};
+            return;
+        }
+
+        allPolicyTags = value;
+    },
+});
+
 let userAccountID = '';
 let currentUserEmail = '';
 Onyx.connect({
@@ -490,13 +504,14 @@ function getMoneyRequestInformation(
     const optimisticPolicyRecentlyUsedCategories = [category, ...uniquePolicyRecentlyUsedCategories];
 
     const optimisticPolicyRecentlyUsedTags = {};
+    const policyTags = allPolicyTags[`${ONYXKEYS.COLLECTION.POLICY_TAGS}${iouReport.policyID}`];
     const recentlyUsedPolicyTags = allRecentlyUsedTags[`${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_TAGS}${iouReport.policyID}`];
 
-    if (recentlyUsedPolicyTags) {
+    if (policyTags) {
         // For now it only uses the first tag of the policy, since multi-tags are not yet supported
-        const recentlyUsedTagListKey = _.first(_.keys(recentlyUsedPolicyTags));
-        const uniquePolicyRecentlyUsedTags = _.filter(recentlyUsedPolicyTags[recentlyUsedTagListKey], (recentlyUsedPolicyTag) => recentlyUsedPolicyTag !== tag);
-        optimisticPolicyRecentlyUsedTags[recentlyUsedTagListKey] = [tag, ...uniquePolicyRecentlyUsedTags];
+        const tagListKey = _.first(_.keys(policyTags));
+        const uniquePolicyRecentlyUsedTags = recentlyUsedPolicyTags ? _.filter(recentlyUsedPolicyTags[tagListKey], (recentlyUsedPolicyTag) => recentlyUsedPolicyTag !== tag) : [];
+        optimisticPolicyRecentlyUsedTags[tagListKey] = [tag, ...uniquePolicyRecentlyUsedTags];
     }
 
     // If there is an existing transaction (which is the case for distance requests), then the data from the existing transaction
@@ -1308,10 +1323,10 @@ function editMoneyRequest(transactionID, transactionThreadReportID, transactionC
         const tagListName = transactionChanges.tagListName;
         const recentlyUsedPolicyTags = allRecentlyUsedTags[`${ONYXKEYS.COLLECTION.POLICY_RECENTLY_USED_TAGS}${iouReport.policyID}`];
 
-        if (recentlyUsedPolicyTags) {
-            const uniquePolicyRecentlyUsedTags = _.filter(recentlyUsedPolicyTags[tagListName], (recentlyUsedPolicyTag) => recentlyUsedPolicyTag !== transactionChanges.tag);
-            optimisticPolicyRecentlyUsedTags[tagListName] = [transactionChanges.tag, ...uniquePolicyRecentlyUsedTags];
-        }
+        const uniquePolicyRecentlyUsedTags = recentlyUsedPolicyTags
+            ? _.filter(recentlyUsedPolicyTags[tagListName], (recentlyUsedPolicyTag) => recentlyUsedPolicyTag !== transactionChanges.tag)
+            : [];
+        optimisticPolicyRecentlyUsedTags[tagListName] = [transactionChanges.tag, ...uniquePolicyRecentlyUsedTags];
     }
 
     // STEP 4: Compose the optimistic data