Although many cash transactions are legitimate, the information reported on Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business) helps the IRS combat tax evasion, drug trade profiting, terrorist financing, and other criminal activities. Criminals often use large cash payments to “launder” money from illegal activities. Compliance with payment reporting laws, including Form 8300, provides valuable information the government can use to help stop this activity. Generally, a person (as defined in the law) who receives more than $10,000 in cash in a single transaction or related transactions must file Form 8300 to report receipt of such amount. You do not have to file Form 8300 if the transaction is not related to your trade or business.
“Cash” includes U.S. and foreign coins and currency. It also includes a cashier’s check, money order, bank draft, or traveler’s check having a face amount of $10,000 or less if it is received in a “designated reporting transaction.”. A designated reporting transaction is the retail sale of a consumer durable (e.g., an auto or boat), a collectible (e.g., a work of art, antique, gem, or coin), or travel or entertainment activity. A cashier’s check, money order, or traveler’s check with a face amount of more than $10,000 is not treated as cash because, if it was bought with currency, the financial institution that issued it must file its own report. Cash does not include a check drawn on the payer’s own account, such as a personal check, regardless of the amount. “Persons” who must file this form include individuals conducting a trade or business, corporations, partnerships, associations, trusts, and estates. Any transactions conducted between a payer and a recipient in a 24-hour period are related transactions (or, if they occur over a period of more than 24 hours, the recipient knows or has reason to know that the transaction is one of a series of connected transactions).
Formerly, Form 8300 could either be filed electronically with FinCEN or in paper form with the IRS. On August 30, 2023, the IRS announced that effective January 1, 2024, you must electronically file Form 8300 if you are required to e-file at least 10 information returns such as Forms 1099 or Forms W-2. You can still file Form 8300 electronically, even if you are not required to do so. Form 8300 must be filed within 15 days after the date the cash transaction occurred, and businesses must keep a copy of Form 8300 for five years from the date it is filed. Form 8300 may be filed voluntarily for any suspicious transaction, even if the total amount received does not exceed $10,000. Failure to file a correct and complete Form 8300 may result in penalties, including a minimum penalty of $25,000 if the failure is due to an intentional or willful disregard of the cash reporting requirements. There are specific definitions and exceptions contained in the reporting rules. Contact us if you have questions regarding the filing requirements for your business.
E-Filing Form 8300
Many businesses have already found the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after the transaction occurred. You will receive free email acknowledgment of receipt of the form when it is e-filed. Businesses can batch e-file their reports, which is especially helpful to those required to file many forms. To file Forms 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. The IRS will ensure the privacy and security of all taxpayer data.
For more information, interested businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at bsaefilinghelp@fincen.gov. For more information about the BSA E-Filing System, businesses can complete a technical support request at Self Service Help Ticket. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. EST.
