IRS Issues Advice on Cash Payments

IRS Issues Advice on Cash Payments

The IRS reminds businesses that they may need to file Form 8300, Report of Cash Payments Over $10,000. Although the IRS concedes that many cash transactions are legitimate, it does note that information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. An IRS notice explains that the government can often trace money from these illegal activities through payments reported on complete, accurate forms.

Although the IRS specifically notes that this form applies to a trade or business, it also explains that a "person" who must file Form 8300 may be an individual, company, corporation, partnership, association, trust or estate. You must file Form 8300 with the IRS if any part of the transaction occurs within any of the 50 states, the District of Columbia, or a U.S. possession or territory. You must file Form 8300 by the 15th day after the date the cash transaction occurred.

Additional Responsibilities

Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. This statement must include the name, address, contact person and telephone number of your business and the aggregate amount of reportable cash. The statement must also indicate that you provided this information to the IRS.

The IRS takes skipping Form 8300 very seriously, noting that civil and criminal penalties may apply if you fail to file it and provide a written statement to each person named. Penalty amounts are adjusted annually for inflation.

To help businesses prepare and file reports, the IRS created a video called "How to Complete Form 8300" – Part I, Part II. Additionally, we can help you with any forms and questions.

 

Copyright 2021

Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Copyright © 2018 IndustryNewsletters. All rights reserved.

Previous Years

Other Blog Articles

Affordable Care Act: What Employers Need to Know

The first thing you have to figure out is whether you're a big or small employer because the rules are different. Generally, if you have fewer than 50 employees, you're a small employer; 50 or more makes you a large employer.

The Minimum Wage: Know the Basics

The federal minimum wage is currently at $7.25 per hour, as established by the Fair Labor Standards Act. This rate has not been raised since 2009. Employers in every state are required to pay all employees this minimum rate.

Affordable Care Act Upheld — Again

In a 7-2 decision, the U.S. Supreme Court upheld, again, the Affordable Care Act. Texas and other states had sued to overturn it.

2021 Year End Webinar

2021 Year End Webinar

Taxable and Nontaxable Employee Benefits

As the unemployment rate falls from its 2020 high, employees are switching jobs in record numbers. The new stability in the economy means workers have more leeway to shop around for jobs that fit their lifestyles, needs and values.

Pages

How can we help?

Let Autopaychecks provide you with a single solution to manage Payroll, Human Resources, Time Tracking and Employee Benefits.

Phone: 970-245-4244
Email: info@autopaychecks.com

Autopaychecks, Inc.

Providing payroll, human resources, time tracking and benefits solutions for small-to-mid-sized companies.

iSolved Solutions from Autopaychecks

Connect with Us