What Form 8300 Is For

Form 8300 is a federal information report that businesses must file with the IRS and the Financial Crimes Enforcement Network (FinCEN) when they receive more than $10,000 in cash in a single transaction or in related transactions. This requirement applies to anyone engaged in a trade or business—from car dealerships and jewelry stores to attorneys, real estate agents, and travel agencies.

The form serves a critical law enforcement purpose: it creates an audit trail that helps authorities combat money laundering, tax evasion, drug trafficking, and terrorist financing. By requiring businesses to report large cash transactions, the government can identify potential criminal activities hidden behind cash payments.

“Cash” has a specific definition for Form 8300 purposes. It includes U.S. and foreign coins and currency, as well as certain monetary instruments like cashier's checks, bank drafts, traveler's checks, and money orders with a face value of $10,000 or less—but only when used in “designated reporting transactions” (sales of consumer durables, collectibles, or travel/entertainment) or when the business knows the customer is trying to avoid reporting. Personal checks drawn on someone's personal bank account are never considered “cash” for Form 8300 purposes, nor are wire transfers from financial institutions.

Related transactions are especially important to understand. If a customer makes multiple cash payments within a 24-hour period that together exceed $10,000, those payments must be reported as a single transaction. Even payments made more than 24 hours apart must be reported if the business knows or has reason to know they are connected—for example, a client making multiple payments toward the same purchase over several days or weeks.

When You’d Use Form 8300

Regular Filing

You must file Form 8300 within 15 days after receiving the reportable cash payment. If the 15th day falls on a Saturday, Sunday, or holiday, file on the next business day. For example, if an attorney receives $12,000 cash from a client on January 10, 2017, the form must be filed by January 25, 2017.

Late Filing

If you miss the 15-day deadline, you must still file the form—but mark it as “LATE.” In 2017, paper returns were still widely accepted, and you would write “LATE” at the center top of Page 1. Late filing does not eliminate your obligation; it simply acknowledges the delay. However, late filing does not protect you from penalties, which begin accruing immediately after the deadline passes.

Amended Filing

While the IRS instructions don't explicitly describe an “amended” Form 8300 process like they do for tax returns, if you discover errors in a previously filed Form 8300 (such as incorrect taxpayer identification numbers, wrong amounts, or missing information), you should file a corrected form as soon as possible. Include a note in the comments section explaining the correction. Prompt correction may help establish reasonable cause if penalties are assessed.

Multiple Payments

If you receive installment payments, you must track them carefully. If the first payment exceeds $10,000, file within 15 days of that payment. If the first payment is under $10,000 but subsequent payments within 12 months push the total over $10,000, file within 15 days of the payment that causes the total to exceed $10,000. After filing, start a new count—if you receive another $10,000+ in cash from the same customer within the next 12 months, you must file another Form 8300.

Key Rules or Details for 2017

Paper vs. Electronic Filing

In 2017, most businesses could still file Form 8300 on paper by mailing it to the IRS Detroit Federal Building. However, electronic filing through the BSA E-Filing System was available and encouraged. (Note: Starting January 1, 2024, mandatory electronic filing applies to businesses that file 10 or more other information returns, but in 2017, e-filing was optional for most filers.)

Who Must File

You must file if you're in a trade or business (not casual transactions) and all of the following apply: (1) you receive more than $10,000 in cash; (2) it's received as a lump sum, installments within one year, or multiple payments within 12 months totaling over $10,000; (3) it's received in the ordinary course of your business; (4) it's from the same buyer or agent; (5) it's in a single transaction or related transactions.

Written Statement Requirement

By January 31 of the year following the reportable transaction, you must provide a written statement to each person named on the Form 8300. This statement must include your business name, address, contact person, phone number, the total reportable cash amount, and language stating the information was furnished to the IRS. You can use your invoice if it includes all required information, but don't simply give customers a copy of Form 8300 itself, as it contains sensitive information like your EIN.

Suspicious Transactions

If you suspect a transaction involves illegal activity or an attempt to evade reporting (even if under $10,000), you may voluntarily file Form 8300 and check box 1b for “suspicious transaction.” Never tell the customer you filed a suspicious transaction report—these are treated confidentially. If you suspect terrorist activity, call the Financial Institutions Hotline at 866-556-3974.

Recordkeeping

Keep a copy of every Form 8300 you file, all supporting documentation, and the written statements you send to customers for at least five years from the filing date.

Step-by-Step (High Level)

Step 1: Recognize a Reportable Transaction

When you receive cash exceeding $10,000 (or multiple related payments that total more than $10,000), immediately note the date, amount, and customer information. Remember that certain cashier's checks and money orders count as “cash” in designated reporting transactions.

Step 2: Gather Required Information

You'll need the customer's name, address, taxpayer identification number (SSN for individuals, EIN for businesses), occupation or type of business, and identification verification information. For transactions conducted on behalf of another person, you also need that person's information. If a customer refuses to provide their TIN, note “customer refused” in the appropriate field and document your attempts to obtain the information.

Step 3: Complete Form 8300

Fill out all four parts of the form: Part I (Identity of Individual From Whom Cash Was Received), Part II (Person on Whose Behalf Transaction Was Conducted), Part III (Description of Transaction and Method of Payment), and Part IV (Business Reporting This Transaction). Be accurate—incorrect information can result in penalties.

Step 4: File Within 15 Days

Mail the completed form to the IRS Detroit Federal Building address or file electronically through the BSA E-Filing System. The clock starts ticking from the date you received the cash (or the date that pushed the total over $10,000 in related transactions). Mark the form “LATE” if you miss the deadline.

Step 5: Provide Customer Statement

By January 31 of the following year, send a written statement to each customer named on the form. This isn't optional—failure to provide the statement carries separate penalties.

Step 6: Maintain Records

Store your copy of Form 8300, supporting documentation (receipts, invoices, customer identification copies), and proof you sent customer statements for at least five years.

Common Mistakes and How to Avoid Them

Mistake #1: Not Recognizing Related Transactions

Many businesses fail to aggregate multiple smaller payments. If a customer pays $6,000 in cash on Monday and $5,000 on Tuesday for the same transaction, that's $11,000 in related transactions within 24 hours—reportable. Solution: Implement a tracking system for cash payments, especially from repeat customers or for ongoing transactions. Train staff to flag multiple cash payments.

Mistake #2: Misunderstanding “Cash”

Some businesses think only currency counts as “cash.” They miss reporting when customers use cashier's checks or money orders under $10,000 in designated reporting transactions (vehicles, boats, collectibles, travel/entertainment). Solution: Review the definition of “cash” carefully and train staff to identify designated reporting transactions. When in doubt, consult the IRS Form 8300 Reference Guide.

Mistake #3: Missing the 15-Day Deadline

Busy business owners often intend to file but lose track of time. Missing the deadline triggers automatic penalties starting at $270 per form (in 2017). Solution: Set up calendar reminders immediately upon receiving reportable cash. Consider assigning one person to be responsible for Form 8300 compliance.

Mistake #4: Incomplete or Incorrect Information

Failing to obtain or verify customer identification, especially taxpayer identification numbers, is a common error. Each error can result in a separate penalty. Solution: Make obtaining complete customer information part of your transaction process for large cash payments. Use Form W-9 to collect TINs and verify identification documents for name and address.

Mistake #5: Forgetting the Customer Statement

Businesses often file Form 8300 on time but forget to send the required written statement to customers by January 31. This carries penalties separate from the filing penalties. Solution: Create a checklist that includes both filing the form AND sending customer statements. Set a January reminder to review all Form 8300 filings from the prior year.

Mistake #6: Structuring or Accepting Structured Payments

Some customers deliberately break up transactions to stay under $10,000—this is called “structuring” and is illegal. If you knowingly accept structured payments or advise customers to structure payments, you face serious criminal penalties. Solution: If you notice suspicious payment patterns, file Form 8300 anyway and check the suspicious transaction box. Never suggest that customers pay in ways that avoid reporting.

What Happens After You File

IRS Processing

After you file Form 8300, the IRS and FinCEN process the information into their databases. This information is shared with federal law enforcement agencies investigating money laundering, tax evasion, and other financial crimes. You typically won't hear anything from the IRS unless there's a problem with your filing.

Customer Awareness

Because you must send a written statement to customers by January 31, they'll know you reported the transaction. This transparency is intentional—legitimate customers understand the requirement, while it may deter those with illicit intentions from using large amounts of cash.

Potential IRS Contact

If the IRS identifies errors, missing information, or has questions about your filing, you may receive correspondence. Respond promptly and completely. If you cannot provide required information despite reasonable efforts (such as a customer refusing to provide their TIN), document those efforts thoroughly—this establishes “reasonable cause” that may eliminate or reduce penalties.

Compliance Examinations

The IRS may examine your business to verify you're complying with Form 8300 requirements. During examinations, agents review cash receipts, invoices, and bank deposits to identify potentially unreported transactions. Maintain organized records and be prepared to demonstrate your compliance procedures.

Penalties Assessment

If the IRS determines you failed to file, filed late, or filed incomplete/incorrect forms, you'll receive a penalty assessment notice. For 2017, negligent failure penalties were $270 per form (reduced to $50 if corrected within 30 days), with maximum annual penalties of $3,275,500. Intentional disregard penalties were much higher: the greater of $27,290 or the amount of cash received, up to $109,000 per violation, with no annual cap.

Criminal Investigations

In cases involving willful failure to file, filing false information, or conspiracy to evade reporting requirements, the case may be referred for criminal prosecution. Criminal penalties can include fines up to $100,000 ($500,000 for corporations) and imprisonment up to five years.

FAQs

Q1: What if a customer refuses to provide their Social Security Number or EIN?

You still must file Form 8300. Note “customer refused” in the taxpayer identification number field (or leave it blank and note the refusal in the comments section for electronic filing). Document your attempts to obtain the information. You may avoid penalties if you can demonstrate reasonable cause—that you made good faith efforts to get the TIN but the customer refused. However, the customer may be subject to backup withholding and potential penalties for refusing.

Q2: Do I have to report cash received from selling my personal car or household items?

No. The Form 8300 requirement applies only to persons engaged in a trade or business. If you're selling personal property in a one-time transaction (not as a business), you don't need to file Form 8300. However, if you regularly buy and sell cars or other items as a business activity, you must file.

Q3: What if I receive $10,000 exactly—not more than $10,000?

File Form 8300. The threshold is “more than $10,000,” which means $10,000.01 or more triggers the requirement. However, given the difficulty of receiving exactly $10,000.00 in most business transactions, err on the side of caution and file for any amount at or above $10,000.

Q4: Can I be penalized if I didn't know about the Form 8300 requirement?

Yes. Ignorance of the requirement doesn't eliminate liability, though it may affect penalty amounts. “Negligent failure” (not knowing about the requirement) results in lower penalties than “intentional disregard” (knowing but ignoring the requirement). However, in 2017, even negligent failure penalties were $270 per form. Businesses should familiarize themselves with their reporting obligations or consult a tax professional.

Q5: What's the difference between Form 8300 and a bank's Currency Transaction Report (CTR)?

While both report large cash transactions, they're filed by different entities and cover different situations. Banks and financial institutions file CTRs (through FinCEN Form 112) for cash transactions exceeding $10,000. Businesses outside the financial industry file Form 8300. The two systems work together to combat money laundering—a customer who uses cash to buy a cashier's check at a bank (triggering a CTR) and then uses that cashier's check at your dealership (potentially triggering Form 8300) creates a traceable paper trail.

Q6: What if my business is located in Puerto Rico, Guam, or another U.S. territory?

You must still file Form 8300 with the IRS, in addition to any filing requirements with your territory's tax authorities. Businesses in U.S. territories (American Samoa, Northern Mariana Islands, Guam, Puerto Rico, and U.S. Virgin Islands) are subject to federal Form 8300 requirements just like businesses in the 50 states.

Q7: Can I correct a Form 8300 after I discover an error?

Yes, and you should do so promptly. File a corrected form with accurate information and note in the comments section that it's a correction. While the IRS doesn't have a specific “amended Form 8300” designation, timely correction of errors demonstrates good faith and may help establish reasonable cause if penalties have been assessed. The sooner you correct errors, the better your position if the IRS questions your compliance.

For More Information

This summary is based on IRS guidance. For complete details, see:

Form 8300 and reporting cash payments of over $10,000 (IRS.gov)
IRS Form 8300 Reference Guide (IRS.gov)
Publication 334 (2017), Tax Guide for Small Business (IRS.gov)
Publication 1544, Reporting Cash Payments of Over $10,000 (IRS.gov)

The information in this guide reflects Form 8300 requirements as they existed in 2017. Tax laws and procedures change over time, so always consult current IRS guidance or a tax professional for the most up-to-date information.