The IRS requires a U.S. person receiving a gift from a foreign individual, corporation, partnership,…
New Mandatory E-filing Form 8300 for Reporting of Large Cash Currency Transactions
The IRS announced yesterday that certain businesses that receive payments of over $10,000 in cash must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, electronically starting in 2024, the IRS said in a news release (IR-2023-157). This new requirement applies to businesses that are required to file at least 10 information returns of one or more types other than Form 8300 in 2024.
Over 400,000 Forms 8300 were filed in the calendar year 2022. An IRS representative said the Service could not immediately determine the number of Forms 8300 that were filed on paper versus electronically.
The IRS noted that although many cash transactions are legitimate, the information on Form 8300 can help the government fight tax evaders, drug traders, and those who finance terrorism.
Businesses can create an account with FinCen’s BSA E-Filing System to e-file Forms 8300. A person generally must file Form 8300 within 15 days after the date the person received the cash.
A business must keep a copy of every Form 8300 it files, along with any supporting documentation and the required statement it sends to customers, for five years from the date filed. The IRS said that retaining the email confirmation of filing a Form 8300 does not meet the record-keeping requirement. Filers also must save a copy of the form — either electronically or on paper — before they finalize the submission and should associate the confirmation number they receive with the copy.
Due to undue hardship, a business may request a waiver from electronically filing information returns, including Form 8300. However, a business may not request an e-filing waiver that would apply just to Form 8300. When submitting a paper-filed return, the business must include the word “Waiver” on the center top of each Form 8300 (page 1).
A person must file Form 8300 within 15 days after the date the person received the cash currency. If the person receives multiple payments toward a single transaction or two or more related transactions, and the total amount paid exceeds $10,000, the person should file Form 8300. Each time payments add up to more than $10,000, the person must file another Form 8300.
Large penalties apply in case of failure to timely file: The penalty for negligent failure to timely file, to include all required information or to include correct information is $310 per return, not to exceed $3,783,000 per calendar year. If any failure to file is corrected on or before the 30th day after the required filing date, the penalty is reduced to $60 in lieu of $310, and the maximum amount imposed shall not exceed $630,500 per calendar year. The penalty for intentional disregard of the requirement to timely file or to include all required information, or to include correct information is the greater of: (1) $31,520 or (2) the amount of cash received in the transaction, not to exceed $126,000 (with no calendar year limitation applicable).
The following are examples of situations that demonstrate how certain large cash transactions require filing Form 8300.
- New or used automobile dealers – Each business must report cash receipts over $10,000 in single or related transactions. See Report of Cash Payments Over $10,000 Received in a Trade or Business – Motor Vehicle Dealership Q&As for more detailed information.
- Marijuana-related businesses – These businesses must report cash receipts greater than $10,000 in a single transaction or related transactions. See the frequently asked questions for more information about the marijuana industry.
The IRS issued a fact sheet, FS-2023-19, with details on the requirement.
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