What is Form 8300? Who has to file it with the IRS?

rajneet

Company Director, EA
Staff member
Who Has To File?
Individuals in a business or trade who generate over $10,000 cash in a single transaction or related transactions are required to file a Form 8300. By completing form 8300, you are helping the government combat criminal activities.

Reporting cash payments
A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent:

  • In one lump sum.
  • In two or more related payments within 24 hours. For example, a 24-hour period is 11 a.m. Tuesday to 11 a.m. Wednesday.
  • As part of a single transaction or two or more related transactions within a 12 month period
Examples of reporting situations:
New or used automobile dealers
If a husband and wife purchased two vehicles at one time from the same dealer, and the dealer received a total of $10,200 in cash, the dealer can view the transaction as a single transaction or two related transactions. Either way, the dealer needs to file only one Form 8300.

  • A dealership doesn't file Form 8300 if a customer pays with a $7,000 wire transfer and a $4,000 cashier check. A wire transfer isn't cash.
  • A customer purchases a vehicle for $9,000 cash. Within 12 months, the customer pays the dealership cash of $1,500 for accessories for that vehicle. The dealer doesn't need to file Form 8300 unless the accessories purchase was related to the original vehicle purchase.
Landlords
This 12-month period also applies to landlords who need to file Form 8300 once they've received more than $10,000 in cash for a lease during the year. If a person uses a unit as a home and rents it less than 15 days during the year, its primary function isn't considered rental in a trade or business, so they don't need to report a cash receipt of more than $10,000.

Contractors
Contractors must file Form 8300 if they receive cash of more than $10,000 for building, renovating, remodeling, landscaping and painting.

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

How to file
A person can file Form 8300 electronically using the Financial Crimes Enforcement Network's BSA E-Filing System. Filers will receive an electronic acknowledgement of each submission.

Those who prefer to mail Form 8300 can send it to the Internal Revenue Service, Detroit Federal Building, P.O. Box 32621, Detroit, MI 48232.


Informing customers about Form 8300 filing
A Form 8300 filer must give each party named on the form written notice by January 31 of the year following the transaction that they filed Form 8300 to report the payer's cash transaction. The government doesn't offer a specific format for the payer's statement, but it must:

  • Be a single statement aggregating the value of the prior year's total reportable transactions.
  • Include the name, address and phone number of the person filing the Form 8300.
  • Inform the payer that the person is reporting the payments to the IRS.
A person can give a payer who only had one transaction during the year a copy of the invoice or Form 8300 as notification if it has the required information. The government doesn't recommend using a copy of Form 8300 because of sensitive information on the form, such as the TIN of the person filing the Form 8300.

A person may voluntarily file Form 8300 to report a suspicious transaction below $10,000. In this situation, the person doesn't let the customer know about the report. The law prohibits a person from informing a payer that it marked the suspicious transaction box on the Form 8300.

 
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