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:
- 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.