Drake Software blog for tax pros, covering tax, IRS news, and more

IRS: e-File is Available for Form 8300

Many taxpayers may have collectively breathed a sigh of relief on July 16, but anyone selling big-ticket items between now and the end of 2020 will still need to report large cash transactions. The Internal Revenue Service says these reports can be batch e-filed, which should make life a little easier for the car dealerships and real estate agents who are likely to be affected by the requirement.

“Although businesses have the option of filing Form 8300, Report of Cash Payments Over $10,000, on paper, many have already found the free and secure e-filing system is a more convenient and cost-effective way to meet the reporting deadline,” the IRS says. “The form is due 15 days after a transaction, and there’s no charge for the e-file option.”

The IRS notes that those who previously relied on paper forms will first need to create an account with the FinCEN BSA E-Filing System before being able to e-file Form 8300, highlighting available support lines in the announcement:  

  • Phone: 866-346-9478 (Monday-Friday, 8:00 a.m. – 6:00 p.m. EST)
  • Email: bsaefilinghelp@fincen.gov

In addition to the added convenience, the IRS explains that reporting these cash transactions helps combat financial crimes, like tax evasion and money laundering.

How does the IRS define cash transactions for the purposes of Form 8300?

In FS-2020-11, the IRS defines cash as “coins and currency of the United States or any foreign country” and “cash equivalents that include cashier's checks (sometimes called a treasurer's check or bank check), bank drafts, traveler's checks, or money orders.”

When a payment is made with multiple forms of cash, transaction will still need to be reported if the sum reaches the $10,000 threshold, is made within a 24-hour period, and is “part of a single transaction or two or more related transactions within a 12-month period.”  

Here are some of the transactions specifically listed:

  • Automobiles
  • Jewelry
  • Mobile homes
  • Furniture
  • Collectibles

The IRS says you should file a Form 8300 if you “[know] the person is trying to avoid the reporting requirement.”

Source: IR-2020-168; FS-2020-11

Ryan Norton

Whether designing superheroes, penciling caricatures, or just doodling, I always knew I was going to earn some sort of art degree while in college. That was my goal before I decided to trade Edgar Degas for Edgar Allan Poe during a Freshman English class. The BA in English soon morphed into a double-major in English and Philosophy, eventually becoming an MA in English. It only makes sense that I learned of a writing opportunity for a local marketing firm while teaching a first-year college English course. Before I knew it, I was writing and editing tax-related articles for Taxing Subjects, and this has been my home since 2014.

comments powered by Disqus