What the Form Is For

Form 8300 is a federal reporting requirement that businesses must file when they receive more than $10,000 in cash from one customer in a single transaction or a series of related transactions. This isn't about tracking your personal finances—it's a tool designed to help law enforcement combat money laundering, tax evasion, drug trafficking, and terrorist financing.

If you operate a business and someone pays you more than $10,000 in cash, you're legally required to report it to both the IRS and the Financial Crimes Enforcement Network (FinCEN). This applies to various businesses including car dealerships, jewelry stores, boat dealers, real estate brokers, attorneys, travel agencies, pawnbrokers, and many others. The form captures important details about who paid you, how much they paid, and what the payment was for.

It’s important to understand what counts as “cash” for this purpose. Obviously, U.S. and foreign currency counts. But it also includes cashier's checks, bank drafts, traveler's checks, and money orders with a face value of $10,000 or less when they're used in certain types of transactions (called “designated reporting transactions”) or when you know the customer is trying to avoid reporting. However, personal checks don't count as cash, and neither do cashier's checks over $10,000—financial institutions handle reporting on those larger instruments.

Source: IRS Form 8300 Reference Guide

When You’d Use It (Late/Amended Filings)

Standard Filing Timeline

You must file Form 8300 within 15 days after receiving the reportable cash payment. If the 15th day falls on a Saturday, Sunday, or legal holiday, you get until the next business day to file.

Multiple Payments Scenario

Sometimes customers pay in installments. If the first cash payment exceeds $10,000, you file within 15 days of that payment. If the first payment is under $10,000 but subsequent cash payments within one year bring the total over $10,000, you file within 15 days of the payment that pushes you over the threshold. After filing once, you start a new count—if that same customer pays you another $10,000+ in cash within the next 12 months, you file another Form 8300.

Amended Returns

If you discover an error on a previously filed Form 8300, you can file an amended report by checking box 1a at the top of a new Form 8300. Complete the entire form with the corrected information—don’t attach a copy of the original report. Submit the amended form to the same address as the original.

Late Filings

While the law doesn’t provide a specific “grace period,” filing late is better than not filing at all. However, you may face penalties for late filing unless you can demonstrate reasonable cause for the delay. The longer you wait, the more serious the consequences could become.

Source: IRS Publication 1544

Key Rules for 2013

The Five-Part Test

You must file Form 8300 if all of these conditions are met:

1. You receive more than $10,000.
2. It’s in cash (as defined above).
3. You receive it in the course of your trade or business.
4. It comes from the same buyer or their agent.
5. It’s received in a single transaction or related transactions.

Related Transactions

Transactions are “related” if they occur within 24 hours of each other. They’re also related if they’re more than 24 hours apart but you know (or have reason to know) they’re part of a series of connected transactions. For example, if someone buys a $9,000 item on Monday and another $5,000 item on Wednesday, these are related transactions totaling $14,000.

Designated Reporting Transactions

This special category includes retail sales of consumer durables (cars, boats, etc. that cost more than $10,000), collectibles (art, antiques, gems, stamps, coins), and travel or entertainment packages exceeding $10,000. In these situations, even cashier's checks and money orders of $10,000 or less count as “cash.”

Taxpayer Identification Numbers (TINs)

You must obtain the correct TIN (usually a Social Security number or Employer Identification Number) from the person making the payment. There’s an exception for foreign individuals and organizations that meet specific criteria, but you still need to verify their identity with acceptable documentation like a passport.

Customer Notification Requirement

When you file a Form 8300, you must send a written statement to each person named on the form by January 31 of the following year. This statement must include your business name and address, a contact name and phone number, the total reportable cash received, and confirmation that you’ve reported this to the IRS.

Civil Penalties (2013)

For 2013, civil penalties for negligent failure to file were $100 per return (capped at $1,500,000 annually), while intentional disregard carried penalties of either $25,000 or the amount of cash received, whichever was greater (up to $100,000 per failure).

Source: IRS Form 8300 Reference Guide

Step-by-Step Filing Process (High Level)

Step 1: Recognize a Reportable Transaction

Monitor your cash receipts throughout each business day. When a customer pays you more than $10,000 in cash (or when installment payments cross the $10,000 threshold), you’ve triggered the reporting requirement.

Step 2: Collect Required Information

Immediately gather the necessary details:

• The customer’s full name, address, and TIN (Social Security number or EIN)
• Details about the transaction (date, amount, what was purchased)
• Information about anyone conducting the transaction on behalf of another person

Request identification to verify this 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, if applicable
• Part III: Description of transaction and payment method
• Part IV: Business information

Double-check all information for accuracy.

Step 4: File the Form

Mail the completed form to:
IRS Detroit Computing Center, P.O. Box 32621, Detroit, MI 48232.
Alternatively, file electronically through FinCEN’s Bank Secrecy Act (BSA) E-Filing System. E-filing is free, secure, and faster than mailing.

Step 5: Notify the Customer

Prepare and send a written statement to each person named on your Form 8300 by January 31 of the year following the cash payment. Include your business details, the total reportable amount, and confirmation that you’ve reported to the IRS.

Step 6: Maintain Records

Keep a copy of every Form 8300 you file and every customer notification statement you send for at least five years from the filing date.

Source: IRS Publication 1544

Common Mistakes and How to Avoid Them

Mistake #1: Treating All Payment Methods as Cash

Not all payment forms trigger reporting. Personal checks never count as cash, and cashier's checks over $10,000 don’t either (banks report those separately).

Mistake #2: Missing Related Transactions

If you receive $6,000 on Monday and $5,000 on Tuesday from the same customer, that’s $11,000 in related transactions. Set up a tracking system to monitor payments over time.

Mistake #3: Failing to Obtain Complete Information

Always request identification and verify TINs at the time of the transaction. If a customer refuses, document your request—you may avoid penalties if you can show reasonable cause.

Mistake #4: Forgetting the Customer Notification

The January 31 deadline for customer statements often sneaks up. Prepare these statements when you file the form to avoid missing the deadline.

Mistake #5: Confusing Business vs. Personal Transactions

The requirement applies only to cash received in the course of your trade or business. Selling a personal item (like your used car) doesn’t trigger Form 8300.

Mistake #6: Ignoring Suspicious Transactions Under $10,000

You can voluntarily file Form 8300 for suspicious activity (e.g., structured payments meant to avoid reporting).

Mistake #7: Not Filing When Refunds Occur

Refunds don’t negate the fact that you received reportable cash. You must still file for the full amount received.

Source: IRS Form 8300 Reference Guide

What Happens After You File

IRS Processing

The IRS enters your Form 8300 data into a national database used by law enforcement to detect patterns of illegal activity.

Customer Awareness

Your customer receives the written statement by January 31, ensuring transparency and discouraging unlawful transactions.

No Immediate Tax Consequences

Filing doesn’t create a tax liability. However, patterns may trigger investigation.

Record Retention

Keep all filed forms and customer statements for five years.

Potential Follow-Up

Law enforcement may contact you for additional information on suspicious transactions.

Civil and Criminal Penalties

• Civil penalties (2013): $30–$100 per return, capped annually.
• Intentional disregard: Greater of $25,000 or the cash received (up to $100,000).
• Criminal prosecution: Up to $250,000 in fines ($500,000 for corporations) and five years in prison.

Source: IRS Publication 1544

FAQs

Q1: Does Form 8300 apply to my online business if I receive large electronic payments?

No. Wire transfers, ACH, and credit card payments don’t count as “cash.” The rule applies to physical currency and certain monetary instruments under $10,000.

Q2: What if my customer refuses to provide their Social Security number or TIN?

Request the TIN in writing and document the refusal. You may avoid penalties by showing reasonable cause.

Q3: If I'm an attorney, does attorney-client privilege protect me from filing?

No. Privilege doesn’t override Form 8300 requirements. Attorneys must file for cash receipts over $10,000.

Q4: A customer paid $9,500 today and plans another $5,000 tomorrow. Should I be concerned?

Yes. This could be structuring, which is illegal. File Form 8300 once the total exceeds $10,000 and consider reporting to IRS Criminal Investigation.

Q5: I received $12,000 cash on December 28, 2013. What’s my filing deadline?

January 13, 2014. (15 days after payment, extended because January 12 was a Sunday.)

Q6: Can I file electronically?

Yes. File through FinCEN’s BSA E-Filing System—it’s free, secure, and faster than mailing.

Q7: Do non-profits need to file if they receive large cash donations?

No. Donations aren’t received “in the course of business,” but business operations (like thrift stores) must comply if they receive more than $10,000 in cash.

Source: IRS Publication 1544