The IRS reminds businesses that they may need to file Form 8300, Report of Cash Payments Over $10,000. Although the IRS concedes that many cash transactions are legitimate, it does note that information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. An IRS notice explains that the government can often trace money from these illegal activities through payments reported on complete, accurate forms.
Although the IRS specifically notes that this form applies to a trade or business, it also explains that a “person” who must file Form 8300 may be an individual, company, corporation, partnership, association, trust or estate. You must file Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia, or a U.S. possession or territory. You must file Form 8300 by the 15th day after the date the cash transaction occurred.
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. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS.
The IRS takes skipping Form 8300 very seriously, noting that civil and criminal penalties may apply if you fail to file it and provide a written statement to each person named. Penalty amounts are adjusted annually for inflation.
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