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IRS Wants Businesses To E-File When Reporting Large Cash Transactions

IRS Reporting Requirements: Business Cash Transactions Over $10,000 Must Be Filed Under Form 8300

Most businesses traffic is smaller transactions. Think about your local convenience store taking in sales of $50 or less in most cases, or a Target taking in no more than a few hundred dollars. But some businesses, particularly those that provide products or services for other businesses or that sell high-end products, can have transactions in the thousands of dollars.

The Internal Revenue Service is reminding those businesses that they must file a special form for some of these larger, cash transactions – particularly those that are more than $10,000. The IRS is encouraging businesses to file the Form 8300 for these payments electronically to ensure that the filing is accurate and complete.

Scottsdale IRS Tax Attorney explaining IRS's Tax Reporting Requirements
 

The reason for the Form 8300 requirement is that some businesses traffic in large, cash transactions as a way to disguise criminal activity, such as trading in drugs or financing terrorist activity. The IRS uses the forms to track money back to criminal activity.

The IRS has created the video, “How to Complete Form 8300 – Part I, Part II” – to help businesses ensure that they are completing this form properly. The video covers some common errors to help taxpayers avoid these mistakes.

Although the Form 8300 can be completed on paper and sent through the mail, the IRS encourages businesses to file these forms electronically. The electronic filing system flags missing information and some mistakes, helping to ensure that any forms submitted are accurate and complete.

The system for filing the form electronically is free and convenient. It also allows taxpayers to easily meet the deadline of filing the form within 15 days of the large transaction. Taxpayers also get immediate acknowledgement when they file the form, which ensures that the IRS has received it and the taxpayer won’t face penalties for a late submission. The system also allows for batch filing if the business has multiple transactions to report.

Before a business can file a Form 8300 electronically, it must create an account with the Bank Secrecy Act (BSA) E-Filing System with the Financial Crimes Enforcement Network. Businesses can call the BSA’s e-filing help desk at (866) 346-9478 or email BSAEFilingHelp@fincen.gov. Hours of operation are Monday through Friday from 8 a.m. to 6 p.m. EST.

Businesses can also find more about the reporting requirement on IRS.gov. Search for FS-2021-3.
 

Contact Experienced Former IRS Tax Lawyers In Arizona

 
If your business has been audited or assessed penalties because of a failure to file Form 8300 or because of errors in reporting, call the tax lawyers at Silver Law PLC. Our experienced attorneys can represent you on audit or defend you against criminal or civil charges. Our goal is to minimize your tax obligation and any penalties assessed. Our tax lawyers have all worked for the IRS previously, so they have unique insights they bring to defending your case. Contact us in Arizona today to meet with a tax attorney and learn more about your options.

  

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Las Vegas, Nevada 89145

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