Important Change Adopted by the IRS
If you are a business owner who receives cash payments of more than $10,000 from a single transaction or related transactions, you need to be aware of an important change in the reporting requirements. Starting with Jan. 1, 2024, you will have to file Form 8300, Report of Cash Payments Over $10,000, electronically through the FinCEN BSA E-Filing System. This is a mandatory requirement that applies to all businesses, regardless of their size or industry.
Beginning with 2024, businesses that receive cryptocurrency worth more than $10,000 in a single transaction will also have to report the transaction on Form 8300.
About Form 8300
Form 8300 is used to report certain cash transactions to the IRS and the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. The purpose of this form is to help combat money laundering, tax evasion, terrorism financing and other criminal activities.
To file Form 8300 electronically, you will need to register with the FinCEN BSA E-Filing System, which is a free and secure government online service. You can find more information about the registration and filing procedures on the FinCEN website.
Exceptions to Electronically Filing Requirement
Your business can file a request for a waiver (Form 8508) from electronically filing information returns due to undue hardship. You must include on each Form 8300 the word “Waiver” on the center top when submitting a paper filed return.
If your business is required to file fewer than 10 information returns, other than Forms 8300, during the calendar year, your business may file Forms 8300 in paper form without requesting a waiver or you can choose to e-file them.
Another automatic exemption to electronically filing requirement is for religious beliefs, in which case you will have to write the words “RELIGIOUS EXEMPTION” on the center top when submitting the paper form.
E-filing, Late filing & Keeping Records
The deadline for Form 8300 is 15 days after a transaction of more than $10,000 takes place.
If you miss the deadline, you need to self-identify your late returns and file them as soon as possible. In case your business files electronically a late Form 8300 you must include the word “LATE” in the comments section of the form. If you file the form on paper, you must write “LATE” on the center top of each form (page 1).
You should keep records of each Form 8300 you file and the supporting documentation for it. You will receive a free email confirmation upon submission of the form through e-filing. But e-file confirmation e-mails alone don’t meet the record keeping requirement. In addition to saving the e-file confirmation, you must also save a copy of the form prior to finalizing the form submission.
Written Statement Requirement
Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. You should include in your statement the following information about your business:
- contact person,
- telephone number,
- the aggregate amount of the reportable cash.
You must also indicate in the statement that you provided this information to the IRS.
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This material is for informational purposes only. It does not constitute tax, legal or accounting advice.