The IRS recently issued a reminder that businesses which are required to file reports of large cash transactions can do so online. This quick and secure option allows batch filing of reports, which is a useful feature for those that are required to file numerous forms.
Form 8300, Report of Cash Payments over $10,000, has to be filed by a business within 15 days of the transaction. This is applicable to all businesses (including nonprofits), regardless of industry and size. E-filing is secure and there is no charge to use it, making it an efficient and cost-effective way for businesses to meet the reporting deadline. Receipts will be sent automatically upon filing. Form 8300 helps law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities.
When to Report Cash Payments
An individual or business is required to file Form 8300 if they receive $10,000 or more in cash from the same payer or agent in the form of:
- A single, lump sum payment.
- In two or more related payments that occur within 24 hours.
- A single transaction or two or more related transaction within a 12-month period.
The cash recipient filing Form 8300 must notify the payer or agent that they will be reporting the payer’s cash transaction. The recipient must notify the payer with a written notice by January 31 of the year following the transaction.
Filing Form 8300
A payer’s statement does not have to follow a specific format, but the IRS requires it to:
- Be a single statement containing an aggregate of the value of the prior year’s total reportable transactions.
- Include the name, address and phone number of the filer.
- Inform the payer that the payments are being reported to the IRS.
A business that wishes to file Form 8300 electronically will first have to set up a BSA E-Filing System account with FinCEN, the Financial Crimes Enforcement Network. Please contact your Smith & Howard advisor with questions.