IRS Form 8300 And What You Need To Know

Form 8300

When a business or individual receives cash payments over $10,000, Form 8300 must be filed. The IRS requires companies and individuals that deal with cash transactions to report all of their sales accurately and honestly. This is a way the IRS maintains a record that a company is truthfully reporting cash dealings by enforcing Form 8300 to be submitted. If you run a business that handles cash transactions, hiring a tax professional such as an enrolled agent or CPA can be highly beneficial. The IRS has little patience for errors and not filing the required forms such as Form 8300 can result in penalties and interest. It’s important to be proactive and in order to prevent major tax audits or investigations into your company, it may be a good idea to have a tax professional’s assistance with reporting your cash transactions.

Form 8300 Rules

If you are researching IRS Form 8300 you might be a business that receives cash payments of $10,000 or more. Each transaction that is $10,000 or more requires a separate Form 8300 and only the person receiving the funds is required to file the form also any transaction within a 24-hour period is considered a related transaction. Any financial exchange exceeding 24 hours may still be considered related if the beneficiary knows, or has reason to know that each transaction is connected.

The IRS may penalize you for failing to file Form 8300 if a transaction exceeds $10,000 even if the transaction is broken in or however long within 365 days. It’s detrimental to recognize the forms of currency that fall under an umbrella definition of cash. According to the IRS, cash includes coins and currency of the United States or foreign countries, cashier checks bank withdrawals, traveler checks, and money orders with a face value of $10,000 or less. Cash is not defined as personal checks drawn on the account of the writer. Cashier checks, bank drafts, traveler checks, or money orders with a face value of more than $10,000 are not considered cash.

Form 8300 Requirements

Form 8300 must be filed within 15 days of receiving the funds in a transaction. Penalties will accrue if the business fails to do so. IRS will penalize you $100 for each occurrence if you fail to file on time. If your business establishment makes less than $5 million per year, the maximum the IRS will penalize you is $500,000 per year. If a correction is made to the failure to file status within 30 days, the penalties may drop to $75,000.

What Does the IRS do with Form 8300?

The IRS is a branch of the US Treasury and is required to create and hold files that pertain to your business. Form 8300 will be with the rest of your business-related tax documents. Businesses like to keep records and make copies of everything they file for at least 5 years. Form 8300 is important for the IRS’s record maintenance.

How to File Form 8300

Form 8300 can be filed and sent by mail, online, or with a tax professional. A popular way to file Form 8300 is online by small businesses due to the convenience of doing it digitally. Since many businesses don’t have time or understand the nature of the form, it’s always a good idea to have a tax expert when filling it so that a tax audit or tax investigation is avoided.

If you need assistance filing Form 8300 with the IRS, Fresh Tax Solutions has all the tools and resources, and instructions needed to make sure your IRS forms are filed error-free. Our team of qualified and knowledgeable professionals has the expertise to lend a hand with all your tax resolution needs. Prevent getting flagged by the IRS for an error that could have been avoided.

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