IRS Tax Tip 2019-49, April 29, 2019
Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments.
For purposes of cash payments, a “person” is defined as an individual, company, corporation, partnership, association, trust or estate. For example:
- Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs and antiques
- Real estate brokers
- Insurance companies
- Travel agencies
How to report
People report the payment by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business .
A person can file Form 8300 electronically using the Financial Crimes Enforcement Network’s BSA E-Filing System. E-filing is free, quick and secure. Filers will receive an electronic acknowledgement of each form they file. Those who prefer to mail Form 8300 can send it to the IRS at the address listed on the form.
Cash includes coins and currency of the United States or any foreign country. For some transactions , it’s also a cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less.
A person must report cash of more than $10,000 they received:
- In one lump sum
- In two or more related payments within 24 hours
- As part of a single transaction within 12 months
- As part of two or more related transactions within 12 months
When to file
A person must file Form 8300 within 15 days after the date they received the cash. If they receive payments toward a single transaction or two or more related transactions, they file when the total amount paid exceeds $10,000.