Tax Tip 2020-123: Businesses can file cash transaction reports electronically and in batches

Internal Revenue Service (IRS) sent this bulletin at 09/22/2020 11:00 AM EDT

IRS Tax Tips

September 22, 2020

Issue Number: Tax Tip 2020-123

Businesses can file cash transaction reports electronically and in batches

Businesses that receive cash transactions of more than $10,000 must report these payments to the IRS – it’s the law. Now businesses can batch file their cash reports; this is especially helpful for those required to file many forms.

Here are some key things to know about reporting these payments.

What’s considered cash
Cash includes coins and currency of the United States or any foreign country. For certain transactions, it’s also a cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less.

Businesses must report cash of more than $10,000 that they receive:

In one lump sum
In two or more related payments within 24 hours
As part of a single transaction within 12 months
As part of two or more related transactions within 12 months

Reporting these payments
Taxpayers report cash payments by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

Filing electronically is encouraged. It’s free, secure and a more convenient and cost-effective way to meet the reporting deadline. Filers will receive an electronic acknowledgement of each form they file.

To e-file, a business has to have an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. To set up an account, businesses can call the BSA E-Filing Help Desk at 866-346-9478 or email them at bsaefilinghelp@fincen.gov. Those who prefer to paper file can send Form 8300 it to the IRS at the address listed on the form.

Those who prefer to paper file can send Form 8300 to the IRS at the address listed on the form.

When to file
Form 8300 must be filed within 15 days after the date the cash is received. If a business receives payments toward a single transaction or two or more related transactions, they should file when the total amount paid exceeds $10,000.

More information:
Reporting cash transactions helps government combat criminal activities
Publication 1544, Reporting Cash Payments of Over $10,000
IRS Form 8300 Reference Guide
Guidance for the Insurance Industry on Filing Form 8300

IRS Videos
How to complete Form 8300 - Part I
How to complete Form 8300 - Part II

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Tax Tip 2020-123: Businesses can file cash transaction reports electronically and in batches

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Issue Number: Tax Tip 2020-123