Cash transactions of $10K or more must be reported

The Internal Revenue Service reminds businesses in U.S. territories that they must file Form 8300 when they engage in cash transactions in excess of $10,000. Businesses must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, with the U.S. Internal Revenue Service within 15 days of the transaction.

The requirement to file form 8300 applies if a person or entity engages in business and receives more than $10,000 cash in a transaction or in two or more related transactions, any portion of which occurs in any U.S. possession or territory, including American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands.

The requirement to file Form 8300 with the IRS is in addition to any filing obligation the business may also have with U.S. territory tax authorities under similar territory rules, including under a U.S. territorial mirror income tax code.

Examples of businesses that may have to file Form 8300 include those that sell jewelry, furniture, boats, aircraft, or automobiles, as well as those that are pawnbrokers, attorneys, real estate brokers, insurance companies, and travel agencies.

Cash includes the coins and currency of the United States and a foreign country. Cash may also include cashier’s checks, bank drafts, traveler’s checks, and money orders with a face value of $10,000 or less. The law requires that businesses report transactions when customers use cash in a single transaction or a related transaction. Related transactions occur within a 24-hour period. If the same payer makes two or more transactions totaling more than $10,000 in a 24-hour period, the business must treat the transactions as one transaction and report the payments. A 24-hour period is 24 hours, not necessarily a calendar day or banking day.

“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities, and we are reminding the public today to ensure everyone complies with the law,” said Assistant Special Agent in Charge Thomas J. Gutierrez of IRS Criminal Investigation. “Structuring financial transactions in order to avoid currency reporting requirements is a criminal violation of federal law. We will vigorously pursue anyone who willfully fails to file the Form 8300.”

For additional information on the filing of Form 8300 with the IRS, including who must file, where to file, and other special circumstances, see the IRS website at: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/IRS-Form-8300-Reference-Guide.

For additional information about IRS Criminal Investigation, visit www.irs.gov. (IRS)