Form 8300 and Reporting Cash Payments of Over $10,000
Form 8300 – Is Your Business Filing the Proper Cash Transaction Forms?
Has your business ever received a large cash payment, and you were not quite sure what your reporting obligations were regarding that large payment? The general rule is that you must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.
The information provided by Form 8300 provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (commonly referred to as FinCEN) in their efforts to combat money laundering. This is an important effort, since money laundering is a tool that assists many individuals who participate in various criminal activities, ranging from tax evasion to terrorist financing to drug dealing, to hide the proceeds from their illegal activities.
Filing Form 8300
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 Form 8300. A "person" includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. A "person" must file a Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia, or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands).
If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurs. A "person" can file Form 8300 electronically or by mailing the form to the IRS at: Detroit Computing Center, P.O. Box 32621, Detroit, Michigan 48232.
In addition to filing Form 8300 with the IRS, companies need to furnish a written statement to each person whose name is required to be included in the Form 8300 by January 31 of the year following the transaction. This statement must include the name, address, contact person, and telephone number of the business filing Form 8300, the aggregate amount of reportable cash the business was required to report to the IRS from the person receiving the statement, and that the business provided this information to the IRS.
Meeting the proper filing requirement and the requirement to furnish a written statement to each person named on the Form 8300 is very important, because there are potential civil and criminal penalties for failure to file Form 8300. Penalties for violation of the Form 8300 filing and furnishing requirements have been increased by the Small Business Jobs and Credit Act of 2010. Increased penalties apply to Forms 8300 and related notices requiring filing or furnishing on or after Jan. 1, 2011. See Form 8300 Penalties Increase for more information.
Make sure your business does not fall victim to any of the false claims circulating in some areas where an individual claims that they can exempt your business from the Form 8300 filing requirements. The law does not provide such an exemption.
Electronic Filing for Form 8300
On Sept 19, 2012, FinCEN announced that businesses are now able to electronically file their Form 8300 using the Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. E-filing is free, and is a quick and secure way for "persons" to file Form 8300. Filers will receive an electronic acknowledgement of each submission. For more information about Form 8300 e-filing, read the FinCEN news release.
The following educational products have been developed for your use in learning more about why, when and where to file Form 8300:
Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business) explains key issues and terms related to Form 8300. Publication 1544 can be downloaded in English or Spanish.
Form 8300 Assistance
Call 866-270-0733 (toll-free inside the U.S.) Monday - Friday, 8 a.m. to 4:30 p.m. Eastern for help in completing Form 8300 (PDF). The form is available online at IRS.gov and the Financial Crimes Enforcement Network website or by calling 800-829-3676. Questions regarding Form 8300 can be sent to 8300QUESTIONS@irs.gov.
Contact the BSA E-Filing Help Desk at 866-346-9478 or by email at BSAEFilingHelp@fincen.gov if you have technical questions or need assistance electronically filing Form 8300.