Reporting Large Cash Transactions - IRS Form 8300 - John R. Dundon II, Enrolled Agent
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Reporting Large Cash Transactions – IRS Form 8300

Reporting Large Cash Transactions – IRS Form 8300

Businesses that receive more than $10,000 in cash in one transaction (or several related transactions) must file IRS Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

According to Program Manager Technical Advice (PMTA) 2010-012. Reg. §1.6050I-1(c)(1) and the instructions to Form 8300, “cash” means coin or currency of the United States or any other country, and cashier checks, bank drafts, traveler’s checks, or money orders (all of which guarantee payment) if the recipient knows that such instrument is being used in an attempt to avoid the Form 8300 reporting requirements. However personal checks are not cash for purposes of the reporting requirements. Also any transactions conducted between a payer (or its agent) and the recipient in a 24-hour period are related transactions. This is true even when the business cashes the personal check and receives cash. The cashing of the check is a separate act, not related to the original transaction with the payer. Neither the original receipt of a personal check nor the subsequent check cashing is a transaction reportable on Form 8300.

To answer a specific question if a customer purchases goods or services, pays for the transaction with a check for over $10,000, and the business cashes the check instead of depositing it, that is not considered a cash transaction and IRS Form 8300 need not be filed.

Here’s another scenario that might help bring clarity to the issue. If a customer pays for goods purchased with $5,000 in U.S. currency and a personal check for $6,000. The recipient business has not received more than $10,000 cash and need not file IRS Form 8300. If the customer had paid with $5,000 in currency and a cashier’s check for $6,000, the business has received more than $10,000 cash and must file Form 8300.