IRS Issues Notice Reminding Businesses of the Obligation to Report “Cash” Transactions over $10,000
Businesses whose customers purchase over $10,000 worth of goods and services in cash must report these transactions to the Internal Revenue Service. The authors of this article discuss the reporting requirements, and remind businesses that failure to comply can result in civil and criminal penalties.
The Internal Revenue Service (“IRS”) recently issued a notice reminding businesses of the obligation to file Forms 8300.1 The Form 8300, Report of Cash Payment over $10,000, requires the recipient to report certain information about the business transaction when the customer pays with more than $10,000 in cash.2 Among other things, the Form 8300 requires information about the name, address, and Social Security number of the individual providing the cash as well as the name and employer identification number of the company engaged in the transaction. The IRS has issued regulations and provided other guidance that further delineates what type of transactions are subject to this reporting requirement. In some cases, the reporting requirements can be complicated and ambiguous.
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“IRS Issues Notice Reminding Businesses of the Obligation to Report “Cash” Transactions over $10,000,” by Stephanie C. Chomentowski and Jed M. Silversmith was published in the Summer 2019 edition of the Real Estate Finance Journal, a Thomson Reuters publication. Reprinted with permission.
This article was first published as a Blank Rome White Collar Defense & Investigations Alert in April 2019.