Did you know that your business may have a reporting obligation if it receives more than $10,000 in cash from a single transaction or two or more related transactions?

In an effort to combat money laundering, the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) generally require a business that has received a cash payment in excess of $10,000 to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. 

If your business is required to file Form 8300, it is due within 15 days after you receive the cash. If multiple payments are involved, Form 8300 is due within 15 days after cash payments exceed $10,000 in a twelve-month period. A business may e-file Form 8300 using the Bank Secrecy Act Electronic Filing System or mail the form to the following address:  IRS Detroit Computing Center, PO Box 32621, Detroit, MI 48232.

If Form 8300 is required, a business must also provide a written statement to the persons included on the form by January 31 of the following year.  A format for the written statement is not specified, but should include the following information:

  • The name and address of the cash recipient’s business,
  • Name and telephone number of a contact person for the business,
  • The total amount of reportable cash received in a twelve-month period, and
  • A statement that the cash recipient is reporting the information to the IRS.

“Failure to File” and “Failure to Furnish” penalties apply to businesses that fail to file Form 8300 and/or fail to issue written statements to persons required to be included on Form 8300. Both the “Failure to File” and the “Failure to Furnish” penalties have been increased from $50 to $100 for each occurrence by the Small Business Jobs and Credit Act of 2010. If the violation is corrected on or before 30 days after the due date, the penalty is only $30 for each “Failure to File” or “Failure to Furnish” penalty.

For more information, please follow this link to the applicable section of irs.gov.

Eric Dutton, CPA
Eric Dutton, CPA

Eric Dutton, CPA is a Tax Manager in DMJ’s Greensboro, North Carolina office and is responsible for tax preparation and research, general accounting and related consulting services. He has authored updates related to North Carolina sales tax and other related professional news.

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