Form 8300 Explanation And Reference Guide

Get a Free Consultation by one of our Tax Professionals

Click Here To Get Started

Safe. Secure. Confidential. No Obligation.

irs fresh start initiative
Form 8300 is one of the most common forms you’ll come across – essential for any business or individual that receives a cash payment greater than $10,000. The IRS produces numerous forms that individuals or businesses have to fill in and send as part of the tax laws. If you have never had to file this form before, you may struggle to understand the ins and outs and what you should do.

What is Form 8300?

To start, you should understand what this form is and why you need to file it. Effectively, it’s essential for any business or individual that receives a cash payment greater than $10,000. This form is used to help regulate businesses and self-employed individuals that often receive large payments in one go. The factor that confuses most people is that this relates to single payments. If you receive over $10,000 in multiple small payments, you won’t need to file Form 8300. The primary aim of this form is to track transactions and be sure that businesses are reporting large payments.

Clean Slate Tax, you were an answer to my prayers. I couldn’t be happier…

– Colene Long – 01/15/2020

​What constitutes a cash payment over $10,000?

Being paid in cash over $10,000 in one go is the most obvious payment under this form. However, it also relates to payments that combine to form an overall payment. This sounds confusing, and it’s where a lot of people slip up.

As mentioned above, if you receive separate payments for separate things, they don’t have to be included on Form 8300. But, if you’re paid in cash installments, you will need to file Form 8300 if the total payment is over $10,000. For example, someone pays $15,000 to your business, but in three installments of $5,000. Each individual cash payment is under $10,000, but the total sum of this payment is over the threshold.

How do you file Form 8300?

You can file a report of cash payments on Form 8300 through various means. Nowadays, most businesses do this online. Regardless of the method you choose, the form will be the same.

Form 8300 is split into four different parts:

  • Part 1 – This is where you input all information on the individual from whom the cash was received. If you view the form here, you’ll see all the various details required.
  • Part 2 – This section is about the person on whose behalf this transaction was conducted. It’s similar to part 1, only the information is about you. If an employee from your business handled the transaction, you fill this section with their info.
  • Part 3 – Next, you have to describe the transaction and how you were paid.
  • Part 4 – The form concludes with information on the business that received cash. Of course, you have to sign and title the form before submitting it.

Form 8300 comes with instructions for you to follow, but it can still be quite tricky. This short guide should help you figure out if you need to file this form and how to do it. If you require more help on the matter, you can hire a tax professional to go through the form and submit it on your behalf.