IRS Form 8300: report cash payments of over $10,000 electronically

Anyone in a trade or business who receives cash payments in excess of $10,000 in a single transaction (or multiple related transactions) must report the receipt of said money to the IRS.

This federal law was introduced after the events of 9/11 to help the government prevent income tax evasion and thwart money laundering related to any terrorist activities.

Check whether you are required to fill out Form 8300

Basically, your receipt of $10,000 or more in cash (in a single transaction or related transactions) triggers your obligation to report this to the IRS within 15 days. The document you must submit is called Form 8300 and you may easily file it online to avoid any penalties from the IRS.

To determine whether you must report to the IRS, follow this checklist:

1. You engaged in a single transaction of at least $10,000, or related transactions totaling $10,000 or more.
2. All or some portion of the payment was made in cash.
3. The payment was received in a lump sum or in installments payable within one year. If the payment is made in installments toward the same transaction, use the total amount, not the amounts of the individual installments.
4. The money was received from the same buyer or agent.
5. The money was received as part of a single transaction or related transactions.

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What forms of currency are considered cash by the IRS?

According to the IRS, cash includes coins and any other ‘hard’ currency form the US or any other foreign countries – cashier’s checks, bank drafts, traveler’s checks, and money orders with a face value of $10,000 or less. Cash is not defined as personal checks drawn on the account of the writer. Cashier’s checks, bank drafts, traveler’s checks, or money orders with a face value of more than $10,000 are also not considered cash.

What information should be provided in a Form 8300?

You must provide the correct Taxpayer ID number or Social Security number of the person from whom you received the cash and then file Form 8300 within 15 days of receiving the payment. If the 15th day falls on a weekend or a federal holiday, you have until the next business day.

Finally, there’s no need to send this form with other documents. A copy of this document should be submitted to each person named in the form.