Have you received a large sum of cash this year in a recent business deal? According to Federal Law, all persons who are given over $10,000 cash in one or more related transactions, are required to report the sum to the IRS.
Here’s everything you need to know to do that…
The Definitions
Under IRS code, all “persons” means just that: everyone – whether an individual, corporation, partnership, company, association, estate, or trust.
As such, and because of their high propensity to receive large cash amounts, many who repeatedly make cash reporting are pawnbrokers, attorneys, insurance companies, travel agencies, real estate brokers, and dealers of furniture, jewelry, boats, art, automobiles, rugs, and antiques – among others.
The definition of “cash” is any coin or currency of the US or any other foreign country. Under certain transactions, this definition may also include bank drafts, cashier checks, traveler checks, or a money order with a face value of over $10,000.
If any of the following is applicable, the cash must be reported if it’s received:
- In one sum;
- In two or more connected payments sent within 24 hours;
- As several smaller payments for a single transaction over the course of 12 months; or
- As several smaller payments for two or more connected transactions over the course of 12 months.
How to Report
To make a cash report, all persons must file under Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business and submit it to the IRS.
Filing can be done either electronically, for free, through the Financial Crimes Enforcement Network’s BSA E-Filing System, or via standard mail, by filing out Form 8300 and sending it to the address listed on the form.
When to Report
All filing must be done within 15 days of receiving the cash in question. If the cash is given over a series of payments for a single transaction, or two or more connected transactions, the person must file Form 8300 when the amount received surpasses $10,000.
Want more information? Feel free to explore the many publications the IRS has to offer on the subject.
