Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business
A trade or business that receives more than $10,000 in cash in a single transaction or related transactions must file Form 8300. This form provides valuable information to the IRS and the Financial Crimes Enforcement Network (FinCEN) and assists them in their efforts to combat money laundering.
Who Should File Form 8300?
Those who must file Form 8300 include individuals, companies, corporations, partnerships, associations, trusts, and estates. Cash payments must be reported if all of the following criteria are met:
- $10,000 or more in cash
- The cash was received as:
- One lump sum of more than $10,000, or
- Installment payments within a year of the initial payment that total more than $10,000, or
- Unreported payments that cause the total to exceed $10,000 within a 12-month period
- You received the cash in the ordinary course of a business or trade
- The same buyer or agent provided the cash
- You received the cash in a single transaction or related transactions
Per the IRS, cash may include any U.S. or foreign currency, as well as cashier’s checks, bank drafts, traveler’s checks, and money orders valued at $10,000 or less.
Transactions That Should Be Reported
The law requires that trades and businesses report cash payments of $10,000 or more by filing Form 8300. Examples of transactions where this may be required include, but is not limited to:
- Escrow arrangement contributions
- Pre-existing debt payments
- Negotiable instrument purchases
- Reimbursement of expenses
- Loan repayment
- Sale of goods or services
- Property rentals
- Property (real or intangible) sales
- Exchange of cash for other cash
- Custodial trust contributions
When to File Form 8300
Form 8300 must be filed within 15 days of the cash transaction. If the 15th day falls on a Saturday, Sunday, or holiday you must file the report on the next business day.
A written statement must also be provided to the person who made the cash payment to your trade or business. The statement must include the following information:
- The name and address of your business,
- Name and telephone number of a contact person for your business,
- The total amount of reportable cash received in a 12-month period, and
- A statement that you are reporting the information to the IRS.
If you fail to file Form 8300 within 15 days of the transaction or neglect to provide the written statement by January 31 of the following year, you could face civil and criminal penalties.
How to File Form 8300
Once you complete Form 8300, you have the option of filing it by mail or online.
File By Mail
Send completed forms to the following address:
Internal Revenue Service
Detroit Federal Building
P.O. Box 32621
Detroit, MI 48323
E-filing is quick, secure, and completely free. You can file electronically using FinCEN’s BSA E-Filing System. You should file each form separately unless you qualify for batch processing.
If you need assistance completing Form 8300, refer to the instructions or reference guide available on IRS.gov. You can also contact Tax Defense Network at 855-476-6920 for a free consultation and quote.