Businesses Must File Cash Transaction Reports for Cash Payments Exceeding $10,000 (IR-2019-20; FS-2019-1)

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:

– individuals;

– companies;

– Corporations;

– Partnerships;

– Associations;

– 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.

FS-2019-1IR-2019-20

Other References:

Code Sec. 6050I

CCH Reference – 2019FED ¶36,203.21

Tax Research Consultant

CCH Reference – TRC FILEBUS: 9,322.05

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CCHTaxGroup

All stories by: CCHTaxGroup