IRS Form 8300: Your Go-To Reference Tool for Reporting Cash Payments Over $10,000

This comprehensive guide is designed to educate and support U.S. individuals and businesses, both within the continental U.S. and its territories, who are obligated to file Form 8300. It also serves as a valuable resource for tax professionals assisting clients with Form 8300 filings, and IRS examiners administering the Form 8300 program.

Introduction to Form 8300

Federal law mandates that all trades and businesses report cash transactions exceeding $10,000 to the government. This is done through IRS/FinCEN Form 8300, officially titled “Report of Cash Payments Over $10,000 Received in a Trade or Business PDF. A wide array of transactions necessitate Form 8300, including but not limited to:

Contributions to escrow arrangements
Payments for pre-existing debts
Purchases of negotiable instruments
Expense reimbursements
Loan transactions (making or repaying)
Sales of goods or services
Real property transactions
Intangible property transactions
Rental income from real or personal property
Cash exchanges
Contributions to custodial trusts

The data collected from Form 8300 is crucial for law enforcement in their fight against money laundering. Business compliance with these reporting standards creates a vital audit trail, aiding authorities in the investigation of potential tax evasion, drug trafficking, terrorist financing, and other illicit activities.

Objectives of This Guide

This Car Written Reference Tool aims to clarify:

Which transactions necessitate reporting for businesses.
The precise definition of “cash” in this context.
The correct procedures and timelines for reporting payments.
The potential civil and criminal penalties for non-compliance.

Understanding Reportable Payments

Businesses are legally required to report cash payments when all of the following conditions are met:

Cash Amount Threshold: The total cash received exceeds $10,000.
Nature of Receipt: The business receives the cash as:
- A single lump sum payment greater than $10,000, or
- Multiple installment payments that, within one year of the initial payment, accumulate to more than $10,000, or
- Previously unreported payments that, when added to prior payments within a 12-month period, surpass the $10,000 mark.
Ordinary Course of Business: The cash is received in the normal operation of a trade or business.
Single Payer Identity: The cash originates from the same payer, or their agent.
Transaction Scope: The business receives the cash in a single transaction or in related transactions. (Further details on related transactions are provided below.)

Important Note: For detailed information on transactions involving agents, please consult the official Form 8300 instructions.

Example Scenario 1: David Chestnut sells his used car for $11,000 and receives cash payment from the buyer. As Mr. Chestnut is not engaged in the business of selling cars, this transaction does not require him to file Form 8300, even though the cash amount exceeds $10,000.

Example Scenario 2: Jane Hawthorne owns a jewelry store in Puerto Rico. She makes a jewelry sale and receives $12,000 in cash. Ms. Hawthorne is obligated to report this transaction by filing Form 8300. Businesses operating in U.S. possessions or territories generally fall under IRS jurisdiction and must file Form 8300 with the IRS. This is in addition to any similar reporting obligations they might have to territorial tax authorities.

Example Scenario 3: You are a travel agent. A client initially pays you $8,000 in cash for a travel package. Two days later, the same client adds another person to the trip and pays an additional $3,000 in cash. These payments are considered related transactions. Consequently, you are required to file Form 8300 to report the combined $11,000 cash receipt.

Defining Cash for Form 8300

For the purposes of Form 8300, “cash” is broadly defined to include:

Physical currency and coins of the United States and any foreign country.
Monetary instruments with a face value of $10,000 or less, such as cashier’s checks, bank drafts, traveler’s checks, and money orders, under specific circumstances:
- When received in a “designated reporting transaction” (defined below), or
- In any transaction where the business is aware that the customer is attempting to avoid Form 8300 reporting.

Example Scenario 1: Tom Boxwood purchases a used vehicle from XYZ Auto Dealership for $12,000, paying with a cashier’s check for the full amount. Because the cashier’s check’s face value is over $10,000, it is not treated as cash. XYZ Auto Dealership is not required to file Form 8300.

Example Scenario 2: Consider the same scenario, but Mr. Boxwood pays $6,000 with a cashier’s check and the remaining $6,000 in cash. In this case, XYZ Auto Dealership must file Form 8300. Even though neither the monetary instrument nor the cash individually exceeds $10,000, their combined value for a single transaction surpasses the reporting threshold.

A “designated reporting transaction” specifically refers to retail sales of:

Consumer Durables: Items like automobiles, boats, or other tangible personal property that are:
- Suitable for personal use.
- Expected to last for at least one year under normal use.
- Priced at more than $10,000.
- Tangible (can be touched and seen).
Collectibles: Items such as artwork, antiques, rugs, metals, gems, stamps, or coins.
Travel and Entertainment: When the total price for all items related to a single trip or entertainment event sold in one transaction or related transactions exceeds $10,000. This includes costs like airfare, hotel accommodations, and admission tickets.

Example Scenario: Ed Maple requests a travel agent to charter a plane for a group trip to a sporting event in another city. He also books hotel rooms and event tickets for the group. He pays with two money orders, each for $6,000. As the travel agent has received over $10,000 in cash for a designated reporting transaction (travel and entertainment), filing Form 8300 is mandatory.

What is NOT Considered Cash

Certain forms of payment are explicitly excluded from the definition of cash for Form 8300 purposes:

Personal checks drawn on the payer’s own account.
Cashier’s checks, bank drafts, traveler’s checks, or money orders with a face value exceeding $10,000.
Fund transfers from a financial institution. A financial institution includes banks and money service businesses (money transmitters).

Note: When a customer uses over $10,000 in currency to purchase a monetary instrument, the financial institution issuing the instrument is required to report the transaction by filing a FinCEN Currency Transaction Report (CTR).

Example Scenario: Jim Willow buys a car from ABC Auto Dealers for $19,000. He pays $4,000 in cash and wires $15,000 from his bank account to the dealership. The wire transfer is not considered cash for Form 8300. Since the cash portion is less than $10,000, ABC Auto Dealers has no Form 8300 filing requirement.

Furthermore, cashier’s checks, bank drafts, traveler’s checks, or money orders received as payments for specific types of transactions are also excluded under certain conditions:

Payments on promissory notes or installment sales contracts (including leases considered sales for federal tax purposes), provided that:
- The business uses similar notes or contracts in its ordinary sales to customers.
- The total payments received on or before the 60th day after the sale are 50% or less of the purchase price.
Payments for consumer durables or collectibles, when ALL of the following are true:
- The payment is received under a payment plan with:
  - One or more down payments, and
  - The balance due by the sale date.
- The payment is received more than 60 days before the sale date.
- The business uses similar payment plans in its ordinary course of business.
Payments for travel or entertainment, when ALL of the following are true:
- The payment is received under a payment plan with:
  - One or more down payments, and
  - The balance due by the earliest date any travel or entertainment item is provided.
- The payment is received more than 60 days before the final payment due date.
- The business uses similar payment plans in its ordinary course of business.

Related Transactions Explained

Regulations require businesses to report transactions when customers use cash in either a single transaction or multiple related transactions. Related transactions are defined as those occurring between the same payer (or their agent) and the cash recipient within a 24-hour period. If a payer engages in two or more transactions totaling over $10,000 within 24 hours, these must be treated as a single transaction for reporting purposes. A 24-hour period is a continuous 24 hours, not necessarily a calendar day or banking day.

Example Scenario: A motorcycle dealership sells a motorcycle for $9,000 cash to Gary Smith at 10 a.m. Later the same day, Mr. Smith returns and buys another motorcycle for his son, again paying $9,000 cash. Because both transactions occur within a 24-hour period, they are related. The dealership must file Form 8300 for the combined $18,000 cash received.

Transactions can also be considered related even if they are more than 24 hours apart if the business knows, or has reason to know, they are a series of connected transactions.

Example Scenario: A client pays a travel agent $8,000 cash for a trip. Two days later, the same client pays an additional $3,000 cash to include another person. These are related transactions, requiring the travel agent to file Form 8300.

Example Scenario: A customer buys a vehicle for $9,000. Within the next 12 months, they pay an additional $1,500 cash for services like a new transmission or accessories. If these later transactions are not part of the original sales contract and the customer isn’t legally obligated to make them, the dealership is NOT required to file Form 8300.

Taxpayer Identification Number (TIN) Requirements

Businesses are obligated to obtain the correct Taxpayer Identification Number (TIN) from the person(s) providing the cash. If the transaction is on behalf of another person, the TIN of that person(s) must also be obtained. Incomplete or incorrect information on Form 8300 can lead to civil or criminal penalties. If a customer refuses to provide their TIN when filing a paper Form 8300, write “customer refused” in item 6. For electronic filings, leave item 6 blank and note “Customer refused to provide EIN” in the Comments Section (item 34). Businesses should document all attempts to obtain customer information. Penalties may be waived if there is “reasonable cause” for failing to obtain the TIN. Refer to Title 26 CFR 301.6724-1 for more information on reasonable cause.

An exception exists for nonresident individuals or foreign organizations under Publication 1544. In these cases, a TIN is not required, but name and address verification is necessary. The source of verification must be documented in items 14(a), (b), and (c) of Form 8300. Acceptable documentation for nonresident aliens includes a government-issued photo ID like a passport or alien registration card.

Example Scenario: A nonresident alien without an SSN or ITIN makes a purchase requiring Form 8300 and presents a Mexican driver’s license for name and address verification. A foreign government-issued driver’s license is acceptable for this purpose.

Reporting Suspicious Transactions

Businesses should be vigilant for transactions that appear suspicious. A transaction is considered suspicious if:

It seems someone is trying to prevent the business from filing Form 8300.
It appears someone is attempting to induce the business to file a false or incomplete Form 8300.
There are indicators of possible illegal activity.

To report a suspicious transaction, check box “1b” (“suspicious transaction”) at the top of Form 8300. If a transaction is suspected to be linked to terrorist activity, immediately call the Financial Institutions Hotline at 866-556-3974.

Businesses can voluntarily file Form 8300 even for transactions of $10,000 or less if they are suspicious. In such voluntary filings, there is no requirement to provide a written statement to the payor (see “Required written statement for customers” below).

Important Note: When a written statement is required, do NOT send a copy of Form 8300 if box 1B (“suspicious transaction”) is checked. Forms 8300 marked as suspicious are treated with strict confidentiality. Under no circumstance should the parties involved be informed of a suspicious Form 8300 filing.

Filing Deadlines for Form 8300

The timing of cash receipt and the transaction amount determine when Form 8300 must be filed. Generally, businesses must file Form 8300 within 15 days after receiving the cash. If the 15th day falls on a weekend or holiday, the deadline is extended to the next business day.

Example Scenario: An attorney receives over $10,000 cash as an advance payment for legal services. Even though no services have been rendered yet, the attorney must file Form 8300 within 15 days of receiving the cash. Timely filing is required once a business receives over $10,000 in cash in a transaction or related transactions.

Reporting Multiple Payments

Customers may pay in cash installments. If the initial installment exceeds $10,000, Form 8300 must be filed within 15 days. If the first payment is less than $10,000, the business tracks payments within a one-year period from the first payment. Once cumulative cash payments exceed $10,000, Form 8300 must be filed within 15 days.

After filing the initial Form 8300, a new 12-month tracking period begins. If further cash payments exceeding $10,000 are received within this new 12-month period, another Form 8300 must be filed within 15 days of the payment that pushes the total over $10,000.

If multiple payments requiring Form 8300 are received within the 15-day filing window, all payments can be reported on a single form.

Example Scenario: On January 10th, a customer makes an $11,000 cash payment. Further payments for the same transaction are made: $4,000 on February 15th, $5,000 on March 20th, and $6,000 on May 12th. Form 8300 for the initial $11,000 payment is due by January 25th. Another Form 8300, covering the additional $15,000 in payments, is due by May 27th.

Example Scenario: Hospital emergency rooms often receive installment payments in cash or monetary instruments under $10,000. For a single emergency room visit, if cash payments exceed $10,000 within a 12-month period, the hospital must file Form 8300. A new payment tracking period then begins. As emergency room treatment is not a “designated reporting transaction,” the expanded definition of cash (including monetary instruments) does not apply unless the hospital suspects the payment structure is designed to avoid Form 8300 reporting.

Where to File Form 8300

Businesses have the option to file Form 8300 electronically through the Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. E-filing is free, secure, and efficient.

Effective January 1, 2024, electronic filing of Form 8300 is mandatory for businesses required to e-file certain other information returns (e.g., Forms 1099, W-2). If a business is required to file at least 10 information returns of any type other than Form 8300 during the calendar year 2024 and subsequent years, they must also e-file Form 8300.

Example Scenario: A business required to file five Forms W-2 and five Forms 1099-INT (totaling 10) must file all information returns electronically, including any Forms 8300. However, if a business files fewer than 10 information returns (excluding Form 8300), electronic filing is not mandatory, and they are not required to e-file Form 8300. The number of Forms 8300 filed does not factor into the electronic filing threshold.

Businesses not mandated to e-file can still choose to do so. Regardless of filing method, Form 8300 must be filed when required.

Businesses not required to file electronically and choosing to mail paper Forms 8300 should send them to:

The Rosa Parks Federal Building (formally The Detroit Federal Building)
P.O. Box 32621
Detroit, MI 48232

Electronic Filing Waivers

A waiver from electronic filing can be requested for undue hardship by filing Form 8508, Application for a Waiver from Electronic Filing of Information Returns PDF. If a waiver is granted for any information return, it automatically applies to Form 8300 for the calendar year. A waiver request cannot be made solely for Form 8300.

If a waiver is granted and paper filing, write “WAIVER” at the center top of each Form 8300 (Page 1). The waiver only exempts electronic filing; the Form 8300 filing obligation remains.

Electronic Filing Exemptions

An automatic exemption from electronic filing is granted to filers for whom the technology conflicts with their religious beliefs. If claiming religious exemption and paper filing, write “RELIGIOUS EXEMPTION” at the center top of each Form 8300 (Page 1). This exemption is only for electronic filing; the Form 8300 filing obligation persists.

Late Filing Procedures

Late Form 8300 filings must be identified and filed in the same manner (electronically or paper) as timely filings. For electronic late filings, include “LATE” in the comments section. For paper late filings, write “LATE” at the center top of each Form 8300 (Page 1).

Note: Failure to file timely includes failing to file in the required manner. If electronic filing was mandatory but not followed, the Form is considered late and subject to penalties.

Filing Requirements for U.S. Territory Businesses

Businesses in U.S. territories (American Samoa, Northern Mariana Islands, Guam, Puerto Rico, and U.S. Virgin Islands), including sole proprietorships, must file Form 8300 with the IRS for cash transactions of $10,000 or more. This IRS requirement is in addition to any similar filing requirements with territory tax authorities.

Consolidated Groups and Form 8300

If the Form 8300 filer is part of a consolidated group, Part IV (items 35-41) should reflect information specific to the member corporation, not the common parent. The common parent’s name and EIN should be included in the Comments section of Form 8300.

Related Party Transactions

If the Form 8300 filer is related to the individual giving the cash or the person on whose behalf the transaction is conducted, indicate “RELATED PARTY TRANSACTION” in the Comments section. Refer to Internal Revenue Code Section 267(b) for the definition of related parties and consult a tax advisor for clarification.

Required Written Statement for Customers

When Form 8300 filing is required, businesses must provide a written statement to each person named on the form, notifying them of the filing. This requirement does not apply to voluntarily filed Forms 8300, including those for suspicious transactions under $10,000.

The statement must include:

Business name and address.
Contact person name and phone number.
Total reportable cash received in a 12-month period.
A statement that the information is being provided to the IRS.

The format of the statement is not prescribed. An invoice can be used if it contains all required information. Providing a Form 8300 copy is not recommended due to sensitive information like EIN or SSN.

The written statement must be furnished to identified customers and all parties on Form 8300 by January 31st of the year following the cash payment.

Recordkeeping Requirements

Businesses must retain a copy of every filed Form 8300, supporting documentation, and customer statements for at least five years from the filing date.

Note: Electronic filing provides email confirmation, but the Form 8300 itself must be retained for five years. Print or save a copy before final submission when e-filing.

Penalties for Non-Compliance

Civil and criminal penalties can be levied for non-compliance with Form 8300 regulations.

De minimis error safe harbor: Errors of $100 or less in dollar amounts generally do not require correction to avoid penalties.

Civil Penalties

Civil penalties apply for returns due in the specified calendar year, starting January 1st of said year.

Returns Due in Calendar Year 2024

2024 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $310 per return, up to a maximum of $3,783,000 per calendar year. For businesses with average annual gross receipts of $5,000,000 or less, the maximum is $1,261,000. (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: If corrected within 30 days of the required filing date, the penalty reduces to $60 (instead of $310), with a maximum of $630,500 per calendar year (or $220,500 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: The penalty is the greater of $31,520 or the cash received in the transaction, up to $126,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $310 per statement, up to $3,783,000 per calendar year (or $1,261,000 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: Penalty reduces to $60 (instead of $310), maximum $630,500 (or $220,500 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: Penalty is $120 (instead of $310), maximum $1,891,500 (or $630,500 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $570 per failure or, if greater, 10% of the aggregate amount of items to be reported correctly (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2023

2023 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $290 per return, up to $3,532,500 max per year ($1,177,500 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $588,500 max per year ($206,000 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $29,440 or cash received, up to $117,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $290 per statement, $3,532,500 max per year ($1,177,500 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $588,500 max ($206,000 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $110 penalty, $1,766,000 max ($588,500 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $570 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2022

2022 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $280 per return, up to $3,426,000 max per year ($1,142,000 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $571,000 max per year ($199,500 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $28,550 or cash received, up to $114,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $280 per statement, $3,426,000 max per year ($1,142,000 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $571,000 max ($199,500 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $110 penalty, $1,713,000 max ($571,000 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $570 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2021

2021 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $280 per return, up to $3,392,000 max per year ($1,130,500 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $565,000 max per year ($197,500 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $28,260 or cash received, up to $113,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $280 per statement, $3,392,000 max per year ($1,130,500 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $565,000 max ($197,500 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $110 penalty, $1,696,000 max ($565,000 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $560 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2020

2020 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $270 per return, up to $3,339,000 max per year ($1,113,000 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $556,500 max per year ($194,500 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $27,820 or cash received, up to $111,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $270 per statement, $3,339,000 max per year ($1,113,000 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $556,500 max ($194,500 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $110 penalty, $1,669,500 max ($556,500 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $550 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2019

2019 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $270 per return, up to $3,275,500 max per year ($1,091,500 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $545,500 max per year ($191,000 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $27,290 or cash received, up to $109,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $270 per statement, $3,275,500 max per year ($1,091,500 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $545,500 max ($191,000 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $100 penalty, $1,637,500 max ($545,500 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $540 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2018

2018 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $260 per return, up to $3,218,500 max per year ($1,072,500 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $536,000 max per year ($187,500 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $26,820 or cash received, up to $107,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $260 per statement, $3,218,500 max per year ($1,072,500 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $536,000 max ($187,500 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $100 penalty, $1,609,000 max ($536,000 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $530 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2017

2017 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $260 per return, up to $3,193,000 max per year ($1,064,000 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $532,000 max per year ($186,000 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $26,600 or cash received, up to $106,000 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $260 per statement, $3,193,000 max per year ($1,064,000 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $532,000 max ($186,000 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $100 penalty, $1,596,500 max ($532,000 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $530 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Returns Due in Calendar Year 2016

2016 Civil penalties and applicable rules are:

Negligent Failure to File/Include Correct Information: $260 per return, up to $3,178,500 max per year ($1,059,500 for small businesses). (IRC Section 6721(a)(1), 6721(d)(1)(A))
Corrected within 30 Days: $50 penalty, $529,500 max per year ($185,000 for small businesses). (IRC Section 6721(b)(1)(B), 6721(d)(1)(B))
Intentional Disregard: Greater of $26,480 or cash received, up to $105,500 per failure (no annual limit). (IRC Section 6721(e)(2)(C))
Negligent Failure to Furnish Notice: $260 per statement, $3,178,500 max per year ($1,059,500 for small businesses). (IRC Section 6722(a)(1), 6722(d)(1)(A))
Notice Corrected within 30 Days: $50 penalty, $529,500 max ($185,000 for small businesses). (IRC 6722(b)(1)(B), 6722(d)(1)(B))
Notice Corrected After 30 Days but before August 1: $100 penalty, $1,589,000 max ($529,500 for small businesses). (IRC 6722(b)(2)(B), 6722(d)(1)(C))
Intentional Disregard of Notice Requirement: $520 per failure or 10% of aggregate amount (no annual limit). (IRC Section 6722(e)(2)(A))

Criminal Penalties

Criminal penalties may apply for:

Willful failure to file, untimely filing, or failure to include complete and correct information on Form 8300 is a felony under IRC Section 7203. Penalties include fines up to $25,000 ($100,000 for corporations) and/or imprisonment up to five years, plus prosecution costs.

Willfully filing a false Form 8300 regarding a material matter can result in fines up to $100,000 ($500,000 for corporations) and/or imprisonment up to three years, plus prosecution costs (IRC Section 7206(1)).

Penalties also extend to anyone (including payers) attempting to interfere with or prevent a business from filing a correct Form 8300, including structuring transactions to avoid reporting requirements. “Structuring” involves breaking down large cash transactions into smaller ones to conceal the true cash amount.

Putting It All Together (Updated July 18, 2024)

Practice Exercises (Answers in Exhibit 1)

ABC Retail Jewelers sells jewelry to John Smith for $12,500. Mr. Smith pays with a personal check. Is Form 8300 filing required?
a. Yes
b. No
Jim Grass buys lumber and hardware from Joe’s Lumber Company for $10,500, paying with a cashier’s check for $10,500. Does Joe’s Lumber Company need to file Form 8300?
a. Yes
b. No
If Mr. Grass paid with $500 cash and a $10,000 cashier’s check for the same purchase, would Joe’s Lumber Company need to file Form 8300?
a. Yes
b. No
City Motors sells a car to Anita Robbins for $17,700. She pays $8,000 by personal check and promises to return later with the $9,700 balance in cash, which she does. Is Form 8300 filing required for City Motors?
a. Yes
b. No
Same scenario as question 4, but Ms. Robbins pays $8,000 by cashier’s check and returns with $9,700 cash. Is Form 8300 filing required for City Motors?
a. Yes
b. No
Thomas and Amanda Moore buy a $16,000 boat from Marina Boating, paying cash for scheduled delivery in 10 days. The next day, they cancel the sale, and Marina Boating refunds $16,000 by company check. Does Marina Boating need to file Form 8300?
a. Yes
b. No
Otto’s Farming Equipment Leasing leases equipment to Marcus Jones, with a lease of $1,000 per month (up to 24 months). Mr. Jones pays in cash on the first of each month from Feb 1, 2015, to Jan 1, 2017. Does Otto’s Farming Equipment Leasing need to file Form 8300?
a. Yes
b. No
Referring to question 7, by which date(s) must Otto’s Farming Equipment Leasing file Form 8300?
a. November 16, 2015
b. December 16, 2015
c. November 16, 2016
d. December 16, 2015, and Nov 16, 2016
Referring to question 7, by which date(s) must Otto’s Farming Equipment Leasing provide a Notification statement to Marcus Jones?
a. December 31, 2015
b. January 31, 2016
c. January 31, 2017
d. January 31, 2016, and Jan 31, 2017
Company XYZ must file seven 1099s for 2024, plus two W-4s and six Forms 8300. Is Company XYZ required to file Forms 8300 electronically in 2024?
a. Yes
b. No

Exhibit 1: Answers to Exercises

(b) No. Personal checks are not cash.
(b) No. A cashier’s check over $10,000 is not cash.
(b) No. Lumber and hardware are not consumer durables, so the cashier’s check is not treated as cash in this non-designated reporting transaction. Consumer durables are tangible personal property for personal use, expected to last at least a year, and priced over $10,000 individually. Grouping consumer durables to meet the $10,000 threshold is not permitted.
(b) No. Personal checks are not cash.
(a) Yes. Cashier’s checks of $10,000 or less combined with currency are considered cash when purchasing a consumer durable (car).
(a) Yes. The refund does not negate the fact that Marina Boating received over $10,000 cash and is required to file Form 8300.
(a) Yes. Form 8300 is required once installment payments exceed $10,000 within a 12-month period.
(d) Form 8300 is required when installment payments exceed $10,000 within a year. A new count starts after each filing for subsequent payments.
(d) Notification statements are due to customers by January 31st of the year following the cash transaction year.
(b) No. Company XYZ does not meet the 10 non-Form 8300 information return e-filing threshold for mandatory electronic filing of Form 8300. Form 8300 count is not included in this threshold.