What IRS Form 8300 (2017) Is For
IRS Form 8300 is used when a person engaged in a trade or business receives more than $10,000 in cash payments in a single transaction or a series of related transactions. The IRS requires companies to report these large cash transactions to the Financial Crimes Enforcement Network to help combat money laundering, tax evasion, drug dealing, and terrorist financing. A business must include the name and telephone number of a contact person and ensure all sensitive information contained in the report is accurate. Filing this form helps maintain transparency while meeting federal cash reporting requirements.
When You’d Use IRS Form 8300 (2017)
Businesses report cash payments when they receive reportable cash over $10,000 within a single transaction or multiple connected transactions. The form must be filed within 15 business days of receiving the cash payment or the installment payment that causes total cash payments to exceed $10,000. If an error occurs, the filer should submit corrected paper forms or electronically file an amended return using the e-filing system. When the 15th day falls on a weekend or holiday, the next business day becomes the deadline.
Key Rules or Details for 2017
- Who Must File: Any person engaged in a trade or business who receives reportable cash or installment payments, or related transactions totaling over $10,000.
- Accepted Payment Types: Cash includes foreign currency, cashier’s checks, traveler’s checks, money orders, and bank drafts, but not personal checks drawn on an individual’s account.
- Written Statement Requirement: By January 31 of the following year, a written statement must be sent to each payer with the business’s name, contact person, telephone number, and total cash received.
- Electronic Filing Options: In 2017, businesses could still submit paper forms or file electronically through the BSA E-Filing System. Today, most must electronically file if they submit ten or more information returns.
- Suspicious Transaction Reporting: If a business suspects illegal activity or an attempt to evade reporting requirements, it should report the payment as a suspicious transaction and contact the Financial Institutions Hotline.
- Recordkeeping: Businesses must retain copies of all IRS Form 8300 filings, customer-written statements, and supporting documentation for a period of five years from the date of filing.
Browse more tax form instructions and filing guides in our Forms Hub.
Step-by-Step (High Level)
Step 1: Identify a Reportable Cash Transaction
When a business receives cash payments exceeding $10,000 from the same payer in a single transaction or a series of related transactions, it must report this as reportable cash. Keep records of the money received and verify the payer’s identity with a driver’s license or other official document.
Step 2: Gather Required Information
Collect all information for the reportable cash transaction: the payer’s name, address, taxpayer identification number, and occupation. If a cash custodial trust contribution or escrow arrangement contribution applies, include those details. Ensure the information is correct before filing.
Step 3: Complete the IRS Form Accurately
Enter details about the cash transaction, including whether it was one lump sum or multiple installment payments. Provide your contact person’s name and telephone number, and confirm that all sensitive information contained in the form is complete and accurate.
Step 4: File Form 8300 Within 15 Business Days
Businesses must file Form 8300 either by mailing paper forms to the address specified, as instructed, or by electronic filing. Filing electronically is faster and ensures confirmation through the e-filing system.
Step 5: Send the Required Written Statement
By January 31 of the year after the transaction, send a written statement to each person named on the form. Include your name, contact person, telephone number, and the total reportable cash received during the year.
Step 6: Retain All Records
Keep all IRS forms, customer statements, and supporting records related to cash transactions, including bank drafts and money orders, in a secure location. Retaining this documentation protects against penalties and proves compliance with IRS reporting requirements.
Learn more about federal tax filing through our IRS Form Help Center.
Common Mistakes and How to Avoid Them
- Failing to Aggregate Related Transactions: Many business owners overlook the importance of combining related transactions within 12 months. To avoid this, monitor all cash payments from the same payer and link related receipts promptly.
- Misunderstanding What Counts as Cash: Some filers think only currency qualifies. To stay compliant, include cashier’s checks, traveler’s checks, and bank drafts when used in designated reporting transactions.
- Missing the Filing Deadline: Late filing may trigger civil and criminal penalties. To avoid this, file Form 8300 within 15 business days and mark it “LATE” if delayed.
- Incomplete or Incorrect Information: Errors in taxpayer identification numbers or addresses can lead to intentional disregard penalties. Always verify data from official documents before submitting the form.
- Failing to Send Written Statements: Businesses that forget to send customer statements face additional penalties. Avoid this by preparing and mailing statements each January before the due date.
- Accepting Structured Payments: Some payers intentionally divide the payments to evade reporting. Avoid this illegal activity by reporting suspicious behavior and calling the Financial Institutions Hotline if necessary.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After filing Form 8300, the IRS and Financial Crimes Enforcement Network review the information for compliance and potential illegal activity. Data is stored securely, and businesses are contacted only if errors or omissions are found. The IRS uses this information to combat money laundering and tax evasion, while ensuring that companies comply with cash reporting requirements. Maintaining copies and proof of filing protects against civil and criminal penalties in the event of an audit.
FAQs
What is the filing requirement for cash payments over $10,000 under IRS Form 8300 (2017)?
Any business that receives more than $10,000 in cash in one or related transactions must file Form 8300 within 15 business days.
How do I electronically file IRS Form 8300 for a cash transaction?
Businesses can electronically file Form 8300 through the BSA E-Filing System by creating an account, entering the transaction details, and submitting it online securely.
What criminal penalties apply for failing to report cash payments properly?
Failure to file, filing late, or submitting false information can result in criminal penalties, including fines and imprisonment for intentional disregard of reporting requirements.
What are the cash reporting requirements for related transactions?
Businesses must report total cash payments exceeding $10,000 received in connected transactions or within 12 months from the same payer.
How do I report payments involving a suspicious transaction or illegal activity?
File Form 8300 and check the suspicious transaction box. Then contact the Financial Institutions Hotline at the listed telephone number for further instructions.
Can I use personal checks or foreign currency when reporting cash received?
Personal checks are not treated as cash for this purpose; however, foreign currency is reportable when total cash payments exceed $10,000 in a single transaction or series of transactions.
What happens if I make additional payments after the initial payment has been reported?
If additional payments exceed $10,000, businesses must file an updated report of cash payments that reflects the total amount and related transaction details.
