In order to combat money laundering scams, the IRS and the Financial Crimes Enforcement Network dictate that taxpayers must report cash payments over $10,000.

As part of the Financial Crimes Enforcement Network (FinCEN) efforts to combat money laundering and to detect tax evasion, terrorist financing and drug dealings, business transactions of over $10,000 require the filing of Form 8300.

- Any persons who receive more than $10,000 while conducting their trade or business must file a Form 8300. The $10,000 may occur in a single transaction, or a series of related transactions.

A business must file Form 8300 to report cash (U.S. or foreign coin and currency) paid to it if the cash payment is:

• Over $10,000,

• Received as:

1. One lump sum of over $10,000

2. Two or more related payments that total in excess of $10,000, or

3. Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.

– U.S. and foreign coins and currency are cash, but a personal check is not considered cash for purposes of filing Form 8300. A cashier’s check, money order, bank draft or traveler’s check with a face amount of over $10,000 is not treated as cash (because the issuer of these instruments was required to file a separate Currency Transaction Report). However, certain payments of $10,000 or less made by cashier’s check, money order, bank draft or traveller’s check must be reported for retail sales of consumer durable goods, a collectible, a travel or entertainment activity (Reg. § 1.6050I-1(c)(iii)) or if the recipient knows the payer is trying to avoid the transaction being reported on Form 8300.

For purposes of Form 8300 reporting required after December 31, 2023, the Infrastructure Investment and Jobs Act, signed into law November 15, 2021, expands the definition of cash to include “digital assets,” defined in the Act as “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary.”

A transaction is the underlying event resulting in the transfer of cash.

Examples include:

 Transactions between a buyer, or agent of the buyer, and a seller that occur within a 24-hour period are related transactions.

Form 8300 must be filed by the 15th day after the date the cash was received (or the next business day if that date is a Saturday, Sunday, or legal holiday). The form is filed with the Internal Revenue Service, Detroit Computing Centre, P O Box 32621, Detroit, MI 48232. Alternatively Form 8300 may be electronically filed using FinCEN's Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. More information is available at http://bsaefiling.fincen.treas.gov/main.html. In addition, a written or electronic statement must be given to each person named on a required Form 8300 by January 31 of the year following the calendar year in which the cash was received. The statement must show the business name and contact information, aggregate amount of reportable cash received, and that the information was furnished to the IRS.

NEW - IMPORTANT: Beginning January 1, 2024 Form 8300 must be filed electronically if the business is required to file at least 10 information returns of one or more type(s) (1099s, W-2s, etc.) other than Form 8300 during a calendar year. A business may file a request for a waiver from electronically filing information returns due to undue hardship. For more information businesses can refer to Form 8508, Application for a Waiver from Electronic Filing of Information Returns.If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Forms 8300 for the duration of the calendar year. A business may not request a waiver from filingonlyForms 8300 electronically.

The business must include the word “Waiver” on the center top of each Form 8300 (Page 1) when submitting a paper filed return.

See the guide "Cannabis Business Issues".