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IRS small business Videos - Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business

 

Transcript for Form 8300

Portia: Hello, I'm Portia Bingham and I'm talking with David Alito about Form 8300.

David, please remind us what the Form 8300 is and who has to file it.

David: Sure, 8300 is the form number for the "Report of Cash Payments Over $10,000 Received in a Trade or Business." In general, anyone who receives more than $10,000 cash in one transaction, or in two or more related transactions, must file this form with the IRS.

And by "anyone," I mean any individual, business, trust, estate or association, engaged in a trade or business.

Portia: Can you give us some examples of filers?

David: All businesses are required to report cash transactions that exceed $10,000. It doesn't matter if the business is a retailer, wholesaler or service provider. That would include auto, RV and boat dealers, jewelers, pawn shops, realtors, travel agencies, etc.

The only businesses not required to file the Form 8300 would be financial institutions as defined by the Bank Secrecy Act. They report large currency transactions on a different form.

Portia: You mentioned something about "two or more related transactions." How do you know if the transactions are related?

David:  Transactions are considered related when the recipient knows or has reason to know that they are related. This is true for transactions that take place over time -- even if a transaction occurs a day or more later than the previous one.

Portia: When is Form 8300 due to the IRS, and what's it used for?

David: The Form 8300 is due within 15 days after the date the cash was received.

It alerts government and law enforcement agencies to unusual or questionable transactions.

The information reported on Form 8300 is used in criminal, tax, and regulatory investigations. Those who conduct intelligence or counterintelligence activities use the data in their analyses to protect against international terrorism.

Portia: When you and I were talking earlier, you mentioned "voluntary reporting." Would you mind describing that?

David: Be glad to. Form 8300 may be filed voluntarily for any suspicious cash transaction, even when the total amount does not exceed $10,000.

A suspicious transaction occurs when it appears that a person is trying to avoid filing a Form 8300 or aims to file a false or incomplete form. The term also includes any transaction where possible illegal activity is indicated.

Portia: Well, I guess that about wraps up the requirements.

David: Not quite! There is also a requirement that the filer furnish a single annual written statement to the person identified in the Form(s) 8300 by January 31st of the following year. There's no particular format but it must include

the 8300 filer's name and address,

the aggregate amount of the reportable cash received from the identified person for the calendar year, and

a statement that this information has been reported to the IRS.

Portia: Where can we get more information about the Form 8300?

David: There is a wealth of information on IRS.gov:

Publication 1544 explains why, when and where a Form 8300 must be filed, and explains key issues and terms.

Publication 1428 is a poster.

And don't forget to read the instructions that accompany the form.

Portia: Thank you, David. I've been talking with David Alito of the IRS. This is Portia Bingham.

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