If you receive more than $10,000 in cash from a business transaction, the IRS requires you to report the payment on Form 8300. The reporting requirement is linked to the government’s efforts to deter money-laundering activities.
However, you do not have to file Form 8300 if the transaction isn’t related to your business activities.
Strategy: Don’t ignore this responsibility. If you’re not careful, it could result in an audit.
The IRS works hand-in-hand with other federal authorities under the provisions of the U.S. Patriot Act. Sanctions may result in steep fines or even criminal penalties.
For this purpose, “cash” is defined as:
- The coins and currency of the United States (and any other country).
- A cashier’s check, bank draft, traveler’s check or money order with a face amount of $10,000 or less.
Tip: The fine for intentional disregard of the reporting rules is the greater of $25,000 or the amount of cash received (up to $100,000).
- Small Business Tax Deduction Strategies No matches