FAQs Regarding Reporting Cash Payments of Over $10,000 (Form 8300)
- Who must file Form 8300?
Any persons who receive more than $10,000 in one transaction or a series of related transactions, while conducting their trade or business, must file a Form 8300.
- What payments must be reported?
A business must file Form 8300 to report cash paid to it if the cash payment is:
- Over $10,000,
- Received as:
- One lump sum of over $10,000,
- Two or more related payments that total in excess of $10,000, or
- Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.
- Received in the course of trade or business,
- Received from the same payer (or agent), and
- Received in a single transaction or in two or more related transactions.
- What is the definition of a transaction?
A transaction is the underlying event resulting in the transfer of cash. Examples include:
- Sale of goods, services or real or intangible property
- Rental of goods or real or personal property
- Cash exchanged for other cash
- Establishment, maintenance of or contribution to a trust or escrow account
- A loan repayment
- Conversion of cash to a negotiable instrument such as a check or a bond
- What is a related transaction?
There are two types of related transactions:
- Transactions between a buyer, or agent of the buyer, and a seller that occur within a 24-hour period are related transactions.
- In addition, transactions more than 24 hours apart are related if the recipient of the cash knows, or has reason to know, that each transaction is one of a series of connected transactions.
- Does the 24-hour period mean one day such as all day Tuesday or does it mean literally 24 hours such as from 11 am on Tuesday to 11 am on Wednesday?
A 24-hour period is 24 hours, not necessarily a calendar day or banking day.
- What does “cash” mean for the purposes of Form 8300?
For purposes of Form 8300:
- Cash is money. It is currency and coins of the United States and any other country.
- Cash is also certain monetary instruments - a cashier’s check, bank draft, traveler’s check, or money order - if it has a face amount of $10,000 or less and the business receives it in:
- A “designated reporting transaction” as defined in Treas. Reg. section 1.6050I-1(c)(iii) (generally, a retail sale of a consumer durable, a collectible, a travel or entertainment activity) or
- Any transaction in which the recipient knows the payer is trying to avoid the reporting of the transaction on Form 8300.
- What is a designated reporting transaction?
Generally, a designated reporting transaction is the retail sale of any of the following:
- A consumer durable, such as an automobile or boat. Property is generally a consumer durable if it is tangible personal property (not real or intangible property) that:
- Is generally suited for personal use,
- Is expected to last at least one year under ordinary use, and
- Has a sale price of more than $10,000.
- A collectible (such as a work of art, rug, antique, metal, gem, stamp, or coin)
- An item of travel and entertainment (if the total sales price of all items for the same trip or entertainment event is more than $10,000).
- A consumer durable, such as an automobile or boat. Property is generally a consumer durable if it is tangible personal property (not real or intangible property) that:
- If an item (an automobile, for example) sells for $9,950 but the buyer pays $10,650 (sales price plus state and local taxes). Would this be considered a designated reporting transaction (retail sale of a consumer durable) requiring the definition of cash to be expanded to include monetary instruments?
No. In determining a designated reporting transaction, a consumer durable is defined as tangible personal property that is generally suited for personal use, is expected to last at least one year under ordinary use, and has a sale price of more than $10,000 (exclusive of sales tax). If the sales price is less than $10,000, then the tangible personal property would not be a consumer durable regardless of any taxes.
- Does a wholesaler report transactions paid in US (or foreign) coins and currency only?
Yes, if the wholesaler receives payment in the form of coins or currency. A wholesaler would rarely have a designated reporting transaction and therefore, need not report transactions paid with cashier’s checks, bank drafts, traveler’s checks or money orders.
- What if a retailer also does some wholesale transactions, would the expanded definition of cash only apply to its retail sales?
No. If the trade or business of the seller principally consists of sales to ultimate consumers, then all sales, including wholesale transactions, are considered “retail sales”.
- Is a personal check considered cash for reporting on Form 8300?
No. Personal checks are not considered cash.
- Would a mobile home be classified as personal or real property for purposes of filing Form 8300?
Personal property. A mobile home qualifies as personal property and a consumable durable for determining any required Form 8300 reporting, regardless of how the purchaser intends to use or ultimately uses the mobile home.
- When is the Form 8300 due?
A business must file Form 8300 within 15 days after the date the cash was received. If there are subsequent payments that are made with respect to a single transaction (or two or more related transactions), the business should file the form 8300 when the total amount paid exceeds $10,000. Each time the payments aggregate in excess of $10,000 the business must file another Form 8300 within 15 days of the payment that causes the additional payments to total more than $10,000.
- Form 8300 requires providing the Taxpayer Identification Number (TIN) of the person providing the cash. If the business is unable to obtain the Taxpayer Identification Number of a customer making a cash payment of over $10,000, should the business file Form 8300 anyway?
Yes, to fail to file the Form 8300 is prohibited in this situation. However a filer may be able to avoid penalties when the customer refuses to provide a TIN by showing that its failure to file is reasonable under circumstances more fully described in 26 CFR 301.6724-1(e). At a minimum:
- The business should request the TIN at the time of the transaction. If the person providing the cash refuses to provide the TIN, the business should inform the person required to provide the TIN that he or she is subject to a $50 penalty imposed by the Internal Revenue Service under section 6723 [26 USCS § 6723] if he or she fails to furnish his or her TIN;
- Maintain contemporaneous records showing the solicitation was properly made and provide such contemporaneous records to IRS upon request,
- Accompany the incomplete filed Form by a statement explaining why the TIN is not included.
- If a TIN is not received as a result of the initial solicitation (at the time of the transaction) the first annual solicitation must be made on or before December 31 of the year in which the account was opened (transaction occurred) or January 31 of the following year for accounts opened in the preceding December following the same procedures.
- How can a business get Form 8300?
You can obtain copies of IRS/FinCEN Form 8300 by:
- Are there any publications that will help with filing Form 8300?
Yes. Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business) explains why, when, and where to file Form 8300. It also explains key issues and terms related to Form 8300. You can obtain copies of Publication 1544 by:
- Where does a business file Form 8300?
A business should mail Form 8300 to:
Internal Revenue Service
Detroit Computing Center
P.O. Box 32621
Detroit, MI 48232
Can Form 8300 be filed electronically?
Yes. 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 individuals to file their Form 8300s. Filers will receive an electronic acknowledgement of each submission. For more information about Form 8300 e-filing, read the FinCEN news release.
- How can a filer confirm that a filed Form 8300 was received by IRS?
The filer can confirm the IRS received the Form 8300 by:
If a customer (the buyer) about whom the Form 8300 was filed wants a copy of the form, they must contact the filer.
- Sending the form via certified mail with return receipt requested or
- Calling the Detroit Computing Center at (800) 800-2877.
- Does the IRS have an email address to send questions regarding Form 8300?
Questions concerning Form 8300 may be submitted to 8300QUESTIONS@IRS.GOV.
This email system will not accept actual Forms 8300.
Written Statement to Customer:
- Must a business notify its customer that the business has filed a Form 8300 regarding the cash transaction with the customer?
Yes, a business must notify its customer, in writing, by January 31 of the subsequent calendar year.
- If a business filed a Form 8300 on an individual and checked the suspicious transaction box and an 8300 report was not required, does the business have to inform the individual by January 31 about the fact that it filed Form 8300?
No, because reporting of the suspicious transaction in this instance is voluntary. A business is only required to provide a statement to individuals if the filing of the Form 8300 is required. A business is prohibited from informing the buyer that the suspicious transaction box was checked.
- Instead of sending the customer a separate notification letter, can the dealership use the sales invoice as the notification requirement, if the sales invoice has language printed on it that the IRS will be furnished with information for cash sales over $10,000?
There is nothing in the code or regulations mandating a specific format for the customer statement. The regulations, however, establish certain minimum requirements:
- The statement notifying the payer must be in the form of a single, annual, written statement of the aggregate value of all transactions required to be reported on the Form 8300 during the previous year. The statement may only be furnished during January of the following year, not at the time of the reported transaction. Furthermore the statement must be a single statement aggregating the value of the prior year transactions. Furnishing copies of various invoices does not meet the requirement of furnishing a single statement of the total aggregate value of the transactions.
- If there was only one transaction during the year and the business furnished a copy of the invoice in January of the following year it would meet the statement requirements if the seller chose to print the required language on an invoice Treasury Regulation section 1.6050I-1(f)(2) states:
- Form of statement. The statement required by the preceding paragraph need not follow any particular format, but it must contain the following information:
- The name and address of the person making the return;
- The aggregate amount of reportable cash, received by the person who filed the Form 8300 during the calendar year, in all related cash transactions; and
- A legend stating that the information contained in the statement is being reported to the Internal Revenue Service.
- Can a copy of the Form 8300 be given to the customer as a written notice?
Yes, if the business filed only one Form 8300 for the identified person during that calendar year at issue. . Because the single Form 8300 contains the name, address, contact telephone number of the filer, the aggregate amount of reportable cash received (since there is only one transaction, or series of related transactions, the one Form represents the entire aggregate transactions) and informs the notice that the payment(s) are being reported to the IRS, the Form 8300 would be acceptable as written notification. However, if during the calendar year, the filer has transactions with the noticee which were included on more than one Form 8300, furnishing copies to the notice of multiple Forms 8300 does not meet the notice requirement because it is not a “single” statement. In this situation, the Form 8300 filer should provide a single written notice for all of the transactions. It should be noted that while the practice of using a copy of the Form 8300 as a notice may be convenient, it may not be advisable because of the sensitive information contained on the form; for example, Employer Identification Number or Social Security Number.
- Are homebuilders/contractors required to file a Form 8300 when building, renovating or remodeling? Also, are landlords required to file assuming the threshold is met during the year?
Yes. Any person who receives more than $10,000 in cash in one transaction or two or more related transactions while conducting their trade or business must file a Form 8300. A person not in the trade or business of managing or leasing real property (such as someone who leases their vacation home for part of the year) would not be required to report the receipt of cash exceeding $10,000.
- Are state-supported colleges and universities exempt from filing Form 8300?
No, colleges and universities are required to file Form 8300 upon receiving, for one transaction or two or more related transactions, more than $10,000 in cash (for example, a tuition payment) in the course of their trade or business of providing educational products and services, regardless of the fact that the money may be excludable from gross income under section 115 of the Internal Revenue Code. The section 115 income exception is distinct from, and does not relieve an educational institution of, the requirement under section 6050I to file a Form 8300 information report.
- A customer purchased a vehicle several months ago for $9,000 cash. Within the next 12 months, the customer paid the dealership additional cash of $1,500 for items relating to the vehicle such as a repair to the vehicle's transmission, purchase of accessories and a customized paint job, etc. Is the dealership required to file a Form 8300 for these transactions?
No, unless the dealer knew or had reason to know the sale of the vehicle and the subsequent transactions were a series of connected transactions (for example, if the dealer and the customer agreed, as a condition of the sale of the vehicle, that the customer would be obligated to pay the additional $1,500).
A customer wired $7,000 from his bank account to the dealership's bank account and also presented a $4,000 cashier check. Does the dealership complete Form 8300?
A wire transfer does not constitute cash for Form 8300 reporting. Since the remaining cash remitted was below $10,000, the dealer has no filing requirement.
A taxi driver makes weekly payments in cash to a taxi company as a lease payment. During a 12-month period, these payments total more than $10,000. Are these payments considered related transactions and is the taxi company required to file a Form 8300?
Yes, the weekly lease payments constitute payments on the same transaction (the leasing of the cab). Accordingly, the taxi company is required to file Form 8300 when the total amount exceeds $10,000. Each time the payments aggregate in excess of $10,000 the taxi company must file another Form 8300 within 15 days of the payment that causes the additional payments to total more than $10,000.
A husband and wife purchase two cars at one time from the same dealer and the total cash received $10,200. How many Forms 8300 should the car dealer file?
The transaction can be viewed as either a single transaction or two related transactions. Either way, it warrants only one Form 8300.
Regarding related transactions, if a customer purchased an item, then eight weeks later the same customer purchased a different item, are these amounts aggregated and reported on the Form 8300?
No, if the two payments are for separate unrelated transactions.
- If a person gives a bail-bonding agent more than $10,000 cash in anticipation of being arrested but has not been arrested yet, is the bail bondsman required to report the cash received, although no service has been performed at the time the cash is received?
Yes, once a person (whether bail bond agent, attorney or other) receives (in a transaction or related transactions) cash exceeding $10,000 in the person's trade or business (bail bonds, legal services, etc.) a Form 8300 must be filed.
- Health services entities often have transactions that will engender over $10,000 in fees in one visit (such as an ER visit). Uninsured patients often pay via installment payments and may use cashiers checks, etc., that are less than $10,000 individually. Would this type of transaction be reportable?
When an installment arrangement is established on a single transaction, in this case the providing of emergency room services, the hospital must file a Form 8300 when cash payments received exceed $10,000 within a 12-month period. After filing the Form 8300, a new count of cash payments from the patient would begin. Since this is not a “designated reporting transaction,” you would not expand the definition of cash to include monetary instruments, like cashiers checks, unless you know that the payer is trying by the manner of payment to keep you from reporting on Form 8300 the transaction or payment(s).
- If a nonprofit organization is selling a tangible asset like furniture or vehicles and receives cash for it that exceeds $10,000, is there a Form 8300 filing requirement?
Exempt organizations do not need to report the receipt of cash donations over $10,000 because an exempt organization is not, in carrying out its exempt function, considered in the definition of a trade or business under IRC section 162. To fall under this category, an organization must have obtained section 501(c)(3) or other tax-exempt status under the Internal Revenue Code; having in its possession a determination letter or an approved application for tax-exempt status from the Internal Revenue Service. The proceeds of a sale must be exempt from tax as part of the carrying on of the exempt organization's tax-exempt activities; in which case, Form 8300 reporting is inapplicable. Form 8300 is required for cash received in the conduct of unrelated trade or business activity of the organization.
A customer deposited over $10,000 in cash into his bank account, which was obtained from a sale of heavy equipment. Is there a form the bank has to file?
The law requires the financial institution that receives a deposit of more than $10,000 to submit a Currency Transaction Report to the Treasury. The fact that this was a result of a sale of heavy equipment has no bearing.
If a customer purchased a cashier’s check at the bank for over $10,000, would the bank report the transaction? Does the seller of a vehicle need to report the transaction if the same cashier’s check is subsequently used to purchase a vehicle?
The bank is required to file a Currency Transaction Report (not a Form 8300) in this scenario. Generally, the purchase of a vehicle with a cashier’s check that is over $10,000 should not be reported on Form 8300. A cashier’s check, bank draft, traveler’s check, or money order with a face amount of more than $10,000 is not treated as cash and a business does not have to file Form 8300 when it receives them. These items are not defined as cash because, if they were bought with currency, the bank or other financial institution that issued them must file a Currency Transaction Report.