Businesses that receive cash transactions of more than $10,000 must report these payments to the IRS. Now businesses can batch file their cash reports; this is especially helpful for those required to file many forms. Let's take a look at several key points that taxpayers should know about reporting cash transactions.
How the IRS defines cash
Cash includes coins and currency of the United States or any foreign country. For certain transactions, it's also a cashier’s check, bank draft, traveler's check, or money order with a face amount of $10,000 or less.
Businesses must report cash of more than $10,000 that they receive:
- In one lump sum
- In two or more related payments within 24 hours
- As part of a single transaction within 12 months
- As part of two or more related transactions within 12 months
Reporting these payments
Taxpayers report cash payments by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
Filing electronically is encouraged; however, to e-file, a business must have an account with the Financial Crimes Enforcement Network's BSA E-Filing System. E-filing is free, secure, and typically a more convenient and cost-effective way to meet the reporting deadline. Filers will receive an electronic acknowledgment of each form they file. Businesses can also paper file Form 8300 and send it to the IRS at the address listed on the form.
When to file
Form 8300 must be filed within 15 days after the date the cash is received. If a business receives payments toward a single transaction or two or more related transactions, they should file when the total amount paid exceeds $10,000.
If you have any questions about reporting cash payments or need help setting up an account with the BSA E-Filing System, please contact the office.