Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Beginning January 1, 2024, this reporting will have to be done electronically. Dive into this piece to understand the form’s purpose, its filing requirements, and the latest adjustments in the regulations.
Form 8300 and Reporting Cash Payments of Over $10,000
The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering. Money is “laundered” to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking, tax evasion, and terrorist financing.
Who Must File
A “person” who must file Form 8300 includes an individual, company, corporation, partnership, association, trust or estate.
You must file Form 8300 electronically with FinCEN, or in paper-form with the IRS, if any part of the transaction occurs within any of the 50 states, the District of Columbia or a U.S. possession or territory (American Samoa, The Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands).
Note: See How to File. Electronic filing mandate starting January 1, 2024.
When to File
You must file Form 8300 within 15 days after the date the cash transaction occurred.
Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS.
Persons who file the required Form 8300 and do not provide a written statement to each person named on Form 8300 are subject to penalties. Penalty amounts are adjusted annually for inflation.
Keep in mind, when Forms 8300 filed due to suspicious activity that are filed under the $10,000 threshold and box 1b is checked off on the form, the statement is not to be provided to the individuals identified on the form. Forms filed under the dollar threshold are not required to be filed. Filing under the threshold is done on a voluntary basis. IRS highly encourages you to file suspicious activity when identified regardless of the dollar amount. Forms marked as suspicious are also treaded confidentially.
How to File
Effective January 1, 2024, you must electronically file (e-file) Forms 8300 if you’re required to e-file other information returns, such as Forms 1099 series and Forms W-2. You must e-file your Forms 8300 if you’re required to file at least 10 information returns of one or more type(s) other than Form 8300 during a calendar year.
For example, if you’re required to file five Forms W-2 and five Forms 1099-INT, then you’re required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 total information returns other than Forms 8300, you’re not required to file the information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the electronic filing requirement.
Keep in mind, if you’re not required to e-file, you can still choose to do so.
Businesses that are not required to file their Forms 8300 electronically that choose to physically mail in their Forms 8300 to the IRS, will send their forms to:
Internal Revenue Service
Detroit Federal Building
P.O. Box 32621
Detroit, MI 48232
You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Request for Waiver from Filing of Information ReturnsPDF. If the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the duration of the calendar year.
You must include the word ‘WAIVER’ on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.
Note: Waivers for electronic filing are not required when business files less than 10 total information returns other than Forms 8300.
If using the technology required to e-file conflicts with your religious beliefs, you are automatically exempt from filing Form 8300 electronically. You must include the words “RELIGIOUS EXEMPTION” on the center top of each Form 8300 (Page 1) when submitting the paper-filed returns.
Penalty for Paper Filing
If you are required to e-file but file by paper and you don’t have a waiver or religious exemption, you will be subject to a failure to file penalty.
You must identify late returns. You must file a late Form 8300 in the same way, either electronically or on paper, as a timely filed Form 8300. When filing a late Form 8300 electronically you must include the word “LATE” in the comments section of the return. When filing a late Form 8300 on paper you must write “LATE” on the center top of each Form 8300 (Page 1).
Note: Failure to file timely includes a failure to file in the required manner. If you are required to file electronically and failed to do so, Form 8300 would be considered late. Forms 8300 that are late are subject to penalty.
Remember, you must keep a copy of Form 8300 for five years. When e-filing, be sure to save a copy of the form before you finish submitting the return. Confirmation receipts don’t meet the recordkeeping requirement. You should associate the confirmation number with the saved copy.
Form 8300 Resources
- IRS Form 8300 Reference Guide
- Motor Vehicle Dealership Q&As
- IR-2020-168, IRS reminds businesses filing cash transaction reports about e-file option; batch filing now available
- FS-2020-11, Reporting cash transactions helps the government combat criminal activities
- Publication 1544, Reporting Cash Payments of Over $10,000
- Publicación 1544 (SP), Informe de Pagos en Efectivo en Exceso de $10,000 (in Spanish)