The Internal Revenue Service issued IR-2023-157 mandating that businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, effective January 1, 2024.
For businesses receiving cash amounts exceeding $10,000, reporting transactions to the U.S. government is required. While most cash transactions are legitimate, the data provided on Forms 8300 can aid in combating tax evasion, illicit drug trade, terrorist financing, and other criminal activities. Timely, accurate, and complete submissions on Forms 8300 can often enable the government to trace funds linked to such unlawful activities.
Forms 8300 should be filed by the 15th day following the receipt of cash. If this due date falls on a weekend or holiday, the filing should occur on the next business day.
This new e-filing requirement for Forms 8300 is applicable to businesses that are already mandated to electronically file other information returns like the Forms 1099 series and Forms W-2. This shift to electronic filing and communication options is designed to simplify interactions with the IRS. Commencing from the calendar year 2024, businesses must e-file all Forms 8300 (and certain other specified types of information returns required for that year) if they are obligated to file at least 10 information returns other than Form 8300.
Noncompliance with the accurate and punctual filing of Form 8300 may result in penalties. Failure to demonstrate reasonable cause for filing delays or inaccuracies could lead to penalties. Intentional or willful disregard of cash reporting requirements may incur a minimum penalty of $25,000. Penalties can also be imposed for inducing or attempting to induce a business to evade filing, submitting a report with material omissions or misstatements, or structuring transactions to avoid reporting. These violations might also face criminal prosecution, potentially resulting in up to 5 years of imprisonment or fines of up to $250,000 for individuals and $500,000 for corporations, or both.
Clink the link below to view IR-2023-157.
Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024 | Internal Revenue Service (irs.gov)