Reporting Cash Transactions to the IRS – What You Should Know

NSTPInternal Revenue Service (IRS)

What you should know about reporting cash payments

Federal law requires reporting cash transactions of more than $10,000 to the IRS. Here’s what you should know about reporting these transactions.

Who’s covered
For purposes of cash payments, a “person” is defined as an individual, company, corporation, partnership, association, trust or estate. For example:

· Dealers of jewelry, furniture, boats, aircraft, automobiles, art, rugs and antiques

  • Pawnbrokers
  • Attorneys
  • Real estate brokers
  • Insurance companies
  • Travel agencies

How to report
People report the payment by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

A person can file Form 8300 electronically using the Financial Crimes Enforcement Network’s BSA E-Filing System. E-filing is free, quick and secure. Filers will receive an electronic acknowledgement of each form they file. Those who prefer to mail Form 8300 can send it to the IRS at the address listed on the form.

What’s cash
Cash includes coins and currency of the United States or any foreign country. For some transactions, it’s also a cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less.

A person must report cash of more than $10,000 they received:

  • In one lump sum
  • In two or more related payments within 24 hours
  • As part of a single transaction within 12 months
  • As part of two or more related transactions within 12 months
When to file

A person must file Form 8300 within 15 days after the date they received the cash. If they receive payments toward a single transaction or two or more related transactions, they file when the total amount paid exceeds $10,000.