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New eFiling Requirement for Businesses that Receive Cash Payment of More than $10,000 by Cherry Laufenberg, CPA

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Posted on November 28, 2023 by Cherry Laufenberg

Certain businesses receiving cash payments exceeding $10,000 must electronically file IRS Form 8300 beginning on Jan. 1, 2024, rather than filing a paper return. According to the IRS, although many cash transactions are legitimate, Form 8300 aims to combat tax evasion, drug trade, terrorism financing and other criminal activities.

The new reporting requirement applies to businesses required to file at least 10 information returns in a calendar year. These documents include IRS Forms W-2, Wage and Tax Statement, and Forms 1099 series used to report nonemployee payments, such as rent and royalties, gains and losses in brokerage accounts, dividends and interest, gambling winnings and income to independent contractors. Therefore, a business that files five Forms W-2 and five Forms 1099-INT must e-file each of those information returns and any Forms 8300. If the business files fewer than 10 information returns, it may choose to file those returns and Forms 8300 on paper.

The IRS reminds businesses that e-filing is a secure, convenient and cost-effective method to meet the requirements for filing Forms 8300, which are due to the Financial Crimes Enforcement Network’s BSA E-Filing System 15 days after receipt of cash payments over $10,000. Businesses will receive an email confirming receipt of their filings. However, they should take special care to maintain copies of every Form 8300 they file along with any supporting documentation and the required statement it sends to customers for five years from the date filed.

If businesses believe they will suffer undue hardships by electronically filing information returns, including Form 8300, they may request a waiver.

About the Author: Cherry Laufenberg, CPA, is an associate director of Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where she helps corporations, pass-through businesses, trusts and foreign entities maintain tax efficiency.  She can be reached at the CPA firm’s Ft. Lauderdale, Fla., office at (954) 712-7000 or via email at info@bpbcpa.com.