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Businesses Must File Cash Transaction Reports for Cash Payments Exceeding $10,000


Cash Purchase

The IRS has urged businesses to file certain cash transaction reports for cash payments exceeding $10,000. Businesses are required to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, for such transactions. In general, Form 8300 helps law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities.

Covered “persons” include:

  • Individuals
  • companies
  • Corporations
  • Partnerships
  • Associations
  • Trusts or estates, and
  • Tax-exempt organizations

The applicable cash transactions include cashier’s checks, bank draft, traveler’s check or money order that a taxpayer receives. This also includes payments received as a lump sum and two or more related payments received within 24 hours.

Further, though tax-exempt organizations may need to report certain transactions, charitable cash contributions are excluded.

Businesses must file Form 8300 within 15 days of receiving funds.

If a business receives later payments toward a single transaction or two or more related transactions, the business should file Form 8300 when the total amount paid exceeds $10,000.

Form 8300 can be filed either by paper or using the BSA E-Filing System, with the latter being secure and much quicker. Finally, more information on cash reporting can be sought from Publication 1544.