Businesses with Cash Transactions Over $10,000 Must File Form 8300 Electronically: The Internal Revenue Service (IRS) has announced that businesses will be required to electronically file Form 8300, Report of Cash Payments Over $10,000, starting on January 1, 2024. This requirement is part of updated regulations for e-filing information returns.
IRS Mandates Electronic Filing of Form 8300 Starting in 2024
Form 8300 is used to report cash payments of more than $10,000 received in a trade or business. This includes payments made in cash, as well as by check, money order, or other negotiable instrument. Businesses are required to file Form 8300 for any transaction that meets this criteria, regardless of the type of business or the customer.
The new e-filing requirement applies to businesses that are already mandated to e-file certain other information returns, like Forms 1099 and W-2. This change aims to simplify electronic filing processes and interactions with the IRS. If a business is required to file at least 10 information returns, including Forms 8300, they must e-file all of them starting in the calendar year 2024.
However, businesses filing fewer than 10 information returns (excluding Forms 8300) are not required to e-file, though they can choose to do so. If a business faces undue hardship in e-filing, they can request a waiver. Exemptions are also provided for businesses whose religious beliefs conflict with electronic filing.
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Late returns must be identified as such, and businesses need to keep copies of Form 8300, supporting documents, and customer statements for five years. While e-filing provides confirmation, businesses need to save a copy of the form before final submission.
The new e-filing requirement for Form 8300 is an important step in the fight against financial crime. By requiring businesses to file these reports electronically, the IRS can more easily identify and investigate suspicious activity. Businesses should start preparing now to meet the new requirement by setting up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System.
For more information about the new e-filing requirement for Form 8300, please visit the IRS website.
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