IRS Form 8300: Guide To Reporting Business Cash Payments Over $10,000

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Form 8300 is one of the most common forms you’ll come across – essential for any business or individual receiving a cash payment over $10,000. The IRS produces numerous forms that individuals or companies must 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. Below, we will reveal everything you need to know about filing form 8300. After all, if you do not adhere to this filing requirement, you could find yourself in serious trouble.

What is Form 8300?

Form 8300 is essential for any business or individual receiving a cash payment over $10,000 within 12 months. This form is used to help regulate companies 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 amounts, you won’t need to file Form 8300. The primary aim of this form is to track money transactions and be sure that businesses are reporting large payments.

Are business or personal checks considered cash?

You may wonder whether checks need to be reported on Form 8300. Checks are considered cash transactions. So long as the value exceeds $10,000, cashier’s checks are cash transactions. The only exception is for a loan payment.

What constitutes a cash payment over $10,000?

Being paid in cash (or coin!) over $10,000 in a single transaction is the most apparent payment under this form. However, it also relates to charges that combine to form an overall amount. This sounds confusing, and it’s where many people slip up.

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, i.e., a connected transaction, you will need to make sure you take care of filing Form 8300 if the total payment is over $10,000. For example, someone spends $15,000 on your business in three installments of $5,000. Each cash payment is under $10,000, but the total sum of this payment is over the threshold. You could end up receiving criminal penalties if you do not fulfill your reporting requirements in this regard or you incorrectly go about filing form 8300.

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 who received the cash. If you view the form here, you’ll see all the various details required.
  • Part 2 – This section concerns the person who conducted this reportable transaction. It’s similar to part 1; only the information is about you. If an employee from your business handled the transaction, you would fill this section with their info.
  • Part 3 – Next, 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 has instructions for you to follow, but it can still be 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 this reporting requirement, you can hire a tax professional to go through the form and submit it on your behalf to have peace of mind that you are managing your money effectively.

The last thing you want is for your business to be seen as partaking in illegal or criminal activities. Suspicious transactions will be flagged and investigated appropriately. This is why reporting requirements are critical. Clean Slate Tax can help ensure you’re handling everything aboveboard. Call us today.