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What to know about reporting cash payments to the IRS

Posted on May 6, 2019

Teipen Selanders Poynter & Ayres is spotlighting the Federal law requiring the reporting of all cash transactions of more than $10,000 to the IRS.

Here are the facts about reporting these payments.

  • The law applies to individuals, companies, corporations, partnerships, associations, trusts, and/or estates.
  • Cash includes coins and currency of the United States or any foreign country. For some transactions, cash may also include cashier’s checks, bank drafts, traveler’s checks, or money order with a face amount of $10,000 or less.
  • Examples of the kinds of payments included are:
  • Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs and antiques
  • Winnings
  • Pawnbrokers
  • Attorneys
  • Trades
  • Real estate brokers
  • Insurance companies
  • Travel agencies

Individuals must report cash of more than $10,000 they received:

  • 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.

How should cash transactions be report
ed? The IRS has a form for that. You should report the payment or payments by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

One can file Form 8300 electronically using the Financial Crimes Enforcement Network’s BSA E-Filing System. Despite the name, this document is free, easy to use and secure. Filers will receive an electronic acknowledgement of each form they file.

If you prefer to mail Form 8300, it can be sent it to the IRS at the address listed on the form.

When should cash transactions be filed? Individuals or companies must file Form 8300 within 15 days after the date they received the cash. If they receive payments toward a single transaction or two or more related transactions, they file when the total amount paid exceeds $10,000.

Teipen Selanders Poynter & Ayres understands that not every cash transaction falls into a neat category. If you have a complicated business or personal cash issue, we can help you understand how the IRS sees the process and guide you to reporting it properly.

Let’s talk.