There is an important new requirement from the IRS for US businesses based upon a new release from the IRS. Any US business who receives a cash payment exceeding $10,000 is required to file Form 8300 – “Report of Cash Payments Over $10,000 Received in a Trade or Business” to the IRS. This information is used by the IRS and the Financial Crimes Enforcement Network (FinCEN) to combat money laundering and illegal activity. This requirement extends to any “individual, company, corporation, partnership, association, trust or estate.”
Any cash payment for a transaction exceeding $10,000 must be reported on the Form 8300 within 15 days of the transaction itself. In addition to the Form 8300, disclosures must be provided in a written statement to each party named on the associated Form 8300 by January 31st of the year following the reported transaction. The failure provide this information to associated parties by that date exposes your business to additional penalties from the IRS. This statement should include your company name, address, contact person, a contact telephone number within your company and the aggregate amount of cash reported for that individual on Form(s) 8300.
It is important to note that the Form 8300 can be used to report “suspicious activity” in transactions less than $10,000 (checking box 1B on the Form 8300). When reporting suspicious activity in these circumstances and a check in box 1B requires that you not send the statement to the associated individuals.
What Has Changed?
Starting January 1, 2024 there will be an important new requirement from the IRS for US Businesses who submit ten or more Form 8300 filings in a calendar year. In the IRS Tax Tip 2023-115 (9/26/23) the IRS will require any individual, company, corporation, partnership, association, trust or estate that files ten or more information returns to electronically file Form 8300, Report of Cash Payments over $10,000 in place of filing the traditional paper returns. In order to electronically file the required IRS Form 8300 your company is required to establish an account with FinCEN through the BSA E-Filing System.
If your company believes the electronic filing requirement will cause undue hardship the IRS may consider a waiver with the submission of Form 8508.
The important new requirement from the IRS for US businesses who file 10 or more Form 8300 submissions annually to begin electronic submission as of January 1, 2024 must be observed. It will take time to establish a BSA E-Filing account with FinCEN, so it is better to begin the process as soon as possible.
