The Los Angeles Post

E-File Form 8300: Reporting of large cash transactions

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FS-23-19, August 2023

 

Who must file

 

Federal law requires a person to report cash transactions of more than $10,000 by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Although many cash transactions are legitimate, the information on the form can help law enforcement combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities.

 

By law, a “person” is an individual, company, corporation, partnership, association, trust or estate. For example, dealers in jewelry, furniture, boats, aircraft or automobiles; pawnbrokers; attorneys; real estate brokers; insurance companies and travel agencies are among those who typically need to file Form 8300.

 

Tax-exempt organizations are also “persons” and may need to report certain transactions. A tax-exempt organization doesn’t have to file Form 8300 for a charitable cash contribution. However, under a separate requirement, a donor often must obtain a written acknowledgement of the contribution from the organization. The organization must report noncharitable cash payments on Form 8300. For example, an exempt organization that receives more than $10,000 in cash for renting part of its building must report the transaction. See Publication 526, Charitable Contributions for details.

 

What’s new

 

Effective Jan. 1, 2024, businesses must electronically file (e-file) Forms 8300 if they are required to e-file certain other information returns electronically, such as Forms 1099 series and Forms W-2. They must e-file Forms 8300 in a given calendar year if they are required to file at least 10 information returns of one or more types, other than Form 8300, beginning with the calendar year 2024. The number of Forms 8300 filed does not affect the information return threshold requirement.

 

For example, if a business files five Forms W-2 and five Forms 1099-INT in 2024, then they must e-file all information returns during the year, including any Forms 8300. But, if they file a total of less than 10 of one or more types of information returns other than Forms 8300, they do not have to e-file the information returns and are not required to e-file any Forms 8300. Although not required to e-file, a business may still choose to do so.

 

When to file

 

A person must file Form 8300 within 15 days after the date the person received the cash. If the person receives multiple payments toward a single transaction or two or more related transactions, and the total amount paid exceeds $10,000, the person should file Form 8300. Each time payments add up to more than $10,000, the person must file another Form 8300.

 

Examples of reporting situations

 

The following are examples of situations that demonstrate how certain large cash transactions require the filing of Form 8300.

 

Record keeping

 

A business must keep a copy of every Form 8300 it files, along with any supporting documentation and the required statement it sends to customers, for five years from the date filed.

 

Business should keep in mind that filing electronically will provide a confirmation email that the form was filed, but e-file confirmation emails do not meet the record keeping requirement. When e-filing, filers must save or print a copy or the form prior to finalizing the form submission. Businesses should associate the confirmation number with the saved copy.

 

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