Submitted by Joel Shabsin, CPA

To help the government combat money laundering, tax evasion, drug dealing, terrorist financing and other criminal activities, the IRS requires any person in a trade or business who receives more than $10,000 in cash in any single transaction or in related transactions to report the transaction on Form 8300. The term “any person” includes an individual, a company, a corporation, a partnership, an association, a trust or an estate. Typical filers might include jewelers, automobile dealers, attorneys, travel agencies, landlords, boat dealers, pawnbrokers, real estate brokers, antique dealers, collectible dealers, art galleries, auctioneers and many other types of businesses.

Cash payments include coins and currency of the United States or any other country. It also includes cash equivalents such as cashier checks, bank drafts, traveler’s checks or money orders. A form 8300 must be filed if they receive cash payments

• In one lump sum
• In 2 or more related payments within 24 hours
• As part of a single transaction of 2 or more related transactions within a 12 month period.

The first 2 bullet points above are fairly self explanatory but the 3rd one may bring some surprises. For example, the 12 month period applies to landlords. Once they receive more than $10,000 in cash payments for a lease during the year, they need to file a Form 8300. $10,000 equates to a monthly rent of $833.34 per month. Contractors who receive more than $10,000 of cash during the year from the same person must file an 8300 form once the total payments reach $10,000.

Each time the payments aggregate more than $10,000, another Form 8300 must be filed.

The Form 8300 requires the taxpayer identification number of the person making the cash payment. If they refuse to provide it, the payer may be assessed a penalty. Even if the person is unable to obtain the TIN, they should file the form anyway and include an explanation why the form doesn’t have a TIN.

8300 Forms should be filed within 15 days after the person receives the cash. For multiple cash payments for a single transaction, the form should be filed when the total amount of cash received exceeds more than $10,000. Each time payments aggregate more than $10,000, the person must file another form. Forms can be filed electronically through the Financial Crimes Enforcement Network’s BSA –filing System or the forms can be sent by certified mail to Internal Revenue Service, Detroit Federal Building, P.O. Box 32621, Detroit Mi. 48232.