You have to file Form 8300 within 15 days of receiving the cash payment, either electronically with FinCEN or by paper with the IRS. You’ll have to include information about who the cash is coming from, details about the transaction itself, and information about your own business.
You’ll also have to send a written statement to each person you named on the form notifying them that you’ve filed Form 8300 with the IRS.
What is Form 8300?
IRS Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, is a form businesses must use to disclose the date, amount and origin of any cash payments they receive in excess of $10,000.
Form 8300 is mandatory, and failing to file one properly every time you receive a cash payment in excess of $10,000 could lead to penalties.
Do I have to file Form 8300?
Anyone who receives a cash payment of at least $10,000 in the course of a trade or business must file Form 8300. This payment can be received in one lump sum, or in installments totalling $10,000 within a 12-month period.
Any payments related to the sale of goods and services, real and intangible property, repaying a loan, contributing to an escrow arrangement, reimbursing expenses, and even exchanging one type of cash for another fall under this requirement.
You don’t have to report payments that aren’t made in the course of a trade or business. For example, if you sell someone your car and receive a cash payment of more than $10,000, and you aren’t in the business of buying or selling cars, you won’t have to file Form 8300.
Before you file Form 8300, remember to collect this information
When collecting the payment, make sure you get the payer's identifying information, including their Taxpayer identification number (TIN), address, and an ID number from some kind of identifying document–either a driver's license, passport, state issued ID, or any other document you normally use to identify yourself when cashing checks.
Collecting all of this information is important, because if you don’t include all of it in Form 8300 you could be subject to penalties. If someone refuses to give you their TIN, you should let them know that they could be subject to a $50 penalty from the IRS for failing to provide it.
Also remember that if the payment was made on behalf of someone else, you’ll need to collect the equivalent information for that person as well.
How to fill out Form 8300
The two page form is divided into four parts. Part I is used to record information for the person from whom the cash was received, or the “payer.” If the payment was made on someone’s behalf, you’ll need to record their information in Part II.
Part III is where you record how the payment was made, and Part IV records information for the business receiving the payment. If the payment was made by multiple individuals or on behalf of more than one person, you can include that information on the “Multiple Parties” form on page two of Form 8300.
Part I: Identity of Individual From Whom the Cash Was Received
This is where you’ll record all of that information you collected from the person who made the cash payment, including their name and address, date of birth, TIN, occupation, and their Identifying document.
If more than one individual was involved in sending the cash payment, check box 2 on page 1 and complete the “Multiple Parties” form on page two of Form 8300.
Part II: Person on Whose Behalf This Transaction Was Conducted
If the payment was made on behalf of someone else, you’ll also have to include that person’s information in Part II, which asks for the same information as Part I.
If the payment was made on behalf of more than one person, check box 15 on page 1 and complete the “Multiple Parties” form on Page two of form 8300.
Part III: Description of Transaction and Method of Payment
In this section you’ll record the total amount of the payment, whether it was paid in installments, when the transaction occurred, and how the payment was made.
On line 32 you’ll specify how the payment was made: via direct cash payment, money order, bank draft, foreign currency, traveler’s check, cashier’s check, or a combination of two or more methods.
On line 33 you’ll check a box to specify what the cash was used to purchase and what type of transaction occurred, and on line 34 you’ll have to describe exactly what that good or service was, including any extra identifying information like serial or registration numbers.
Part IV: Business That Received Cash
Finally, you’ll use Part IV to record information for the business that received the cash payment (i.e. you), including the name and address, EIN and SSN, the nature of the business, and the name and phone number for a contact at the business.
Sending a statement to the payer(s)
In addition to filing Form 8300, you’re legally required to send a written statement to each person named on the form letting them know that you’ve filed Form 8300 with the IRS. You must do so on or before January 31st of the year following the year of the payment.
This statement can take any form–a letter or an invoice, for example–but must contain the following information:
- The name and address of the business that received the payment
- The name and telephone number for a contact person at that business
- The total amount reported to the IRS
- Some indication that this information has been reported to the IRS
The IRS generally doesn’t recommend providing payors with a copy of form 8300 due to the sensitive information contained in the form.
What happens if I can’t get all of the required information?
You must include all of the above information on Form 8300, including Taxpayer Identification Numbers (TIN) for all U.S. payers and anyone else on whose behalf the payment was made. You do not have to include a TIN for nonresident individuals or foreign organizations, however you’ll still need their name, address and some kind of ID.
Failing to include this information could result in penalties, however you may be able to avoid those penalties if the payer refuses to provide you with that information.
If you suspect a payee might be trying to prevent you from filing a complete Form 8300, or you suspect illegal activity, you can report a suspicious transaction by checking box 1b on line 1 of Form 8300, or by calling the Financial Institutions Hotline at 866-556-3974.
When do I have to file Form 8300?
Form 8300 is due within 15 days of the payment being made. If the payment is made in installments, the form is due within 15 days of the total cash payments exceeding $10,000 within a 12-month period.
If you file Form 8300 after receiving $10,000 in cash payments, and the same payer then sends you additional cash payments totalling $10,000, you have to file another 8300 for those additional payments.
If you fail to file form 8300 on time, the penalty is $310 per form. That amount goes up to $570 if you intentionally fail to file.
How do I file IRS Form 8300?
As of January 1, 2024, you must file Form 8300 electronically if you’re required to e-file other forms like Form 1099 and Form W-2. You must also e-file Form 8300 if you’re required to file ten or more information returns during the year.
You can file 8300 electronically using the BSA Electronic Filing System, which is used to file forms with FinCEN. If you do not e-file Form 8300, you must mail it to the following address:
Internal Revenue Service
Detroit Federal Building
P.O. Box 32621
Detroit, MI 48232
