In a News Release and Fact Sheet, IRS has reminded businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, and has encouraged e-filing of the form.
Background. Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file a Form 8300. (Code Sec. 6050I(a); Instructions to Form 8300)
A “person” is an individual, company, corporation, partnership, association, trust or estate. (Reg. §1.6050I-1(a)(1)(i))
A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent:
- in one lump sum;
- in two or more related payments within 24 hours, e.g., a 24-hour period is 11 a.m. Tuesday to 11 a.m. Wednesday; or
- as part of a single transaction or two or more related transactions within a 12-month period. (Reg. §1.6050I-1(b); Reg. §1.6050I-1(c)(7)(ii))
How to file; IRS encourages e-filing. While taxpayers may still file Form 8300 on paper, IRS encourages businesses to electronically file completed forms. Electronic filing reduces the need for follow-up correspondence with IRS. E-filing can be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. E-filers get an automatic acknowledgment of receipt when they file. And, businesses can batch file their reports, which is helpful to those required to file many forms.
To file Form 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. For more information, interested businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at [email protected].