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.
Code Sec. 6050I
CCH Reference – 2019FED ¶36,203.21
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CCH Reference – TRC FILEBUS: 9,322.05