By George Grzywacz, CPA, JD – Shareholder

For many businesses receiving large cash payments, filing a Form 8300 with the Internal Revenue Service (IRS) has become a part of its day-to-day business practices. However, some businesses still overlook their filing requirements, putting them at risk for civil and criminal penalties, as well as unwanted IRS scrutiny.

Aimed at assisting law enforcement agencies in anti-money-laundering, tax evasion and other financial crime efforts, Form 8300 is required to be filed by any business that receives a cash payment for specified types of goods or services in excess of $10,000. This reporting requirement also applies to a transaction where the payment is broken down into installments, once the $10,000 limit is exceeded for that transaction, reporting is required. The form is due within 15 days of receiving the reportable funds.

Tax-exempt organizations may need to report certain transactions, however they escape having to report charitable cash contributions via the Form 8300.

If you have questions regarding your filing requirements on cash transactions or believe you have potentially overlooked them, contact a tax advisor at Doeren Mayhew to help you.