What People Should Know About Reporting Cash Payments


 

Federal law requires a person to report cash transactions of more than $10,000 to the IRS. Here are some facts about reporting these payments.

Who is covered?

For purposes of cash payments, a “person” is defined as an individual, company, corporation, partnership, association, trust, or estate. For example:

  • Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs, and antiques
  • Pawnbrokers
  • Attorneys
  • Real estate brokers
  • Insurance companies
  • Travel agencies

How to report?

People report the payment by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. A person can file Form 8300 electronically using the Financial Crimes Enforcement Network’s BSA E-Filing System. E-filing is free, quick, and secure. Filers will receive an electronic acknowledgement of each form they file. Those who prefer to mail Form 8300 can send it to the IRS at the address listed on the form.

What is cash?

Cash includes coins and currency of the United States or any foreign country. For some transactions, it’ is also a cashier’s check, bank draft, traveler’s check, or money order with a face amount of $10,000 or less.

A person must report cash of more than $10,000 they received

  • in one lump sum;
  • in two or more related payments within 24 hours;
  • as part of a single transaction within 12 months; and
  • as part of two or more related transactions within 12 months.

When to file?

A person must file Form 8300 within 15 days after the date they received the cash. If they receive payments toward a single transaction or two or more related transactions, they file when the total amount paid exceeds $10,000.

For more information about this article, please contact our tax professionals at taxalerts@windes.com or toll free at 844.4WINDES (844.494.6337).

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