PLEASE NOTE: To protect your health and safety in response to the threat of the COVID-19 Virus, we are offering our clients the ability to meet with us in person while maintaining social distancing, via telephone or through video conferencing. Please call our office to discuss your options.
Kundra & Associates PC
Call Our Team Today

What is the importance of Form 8300?

| Nov 18, 2017 | blog

When your business obtains a large cash payment, it may be that you need to file Form 8300 to disclose the payment. This form is specifically used to identify payments going to businesses in the amount of $10,000 or more.

You have to file the form if you receive $10,000 in a single transaction or $10,000 from the same buyer in multiple related transactions. Any person in a trade or business needs to file this, including those who are in companies, corporations, who file as individuals or otherwise.

How long do you have to file Form 8300?

You have 15 days following the receipt of the payment to report the transactions. You can file the form electronically online with the Internal Revenue Service or do so manually by mailing a form to the IRS’s Detroit-based offices.

What else do you need to file when you send Form 8300?

You need to include a statement including the information about a contact person and telephone number for the business filing the form. Include the name and address in this statement as well as the aggregate amount of cash that your business was required to report. Notate that you provided that information to the IRS in your written statement.

Why do businesses have to report large transactions?

It’s important to report large transactions as a way to reduce tax evasion and money laundering. Additionally, reporting helps reduce criminal activities and makes it harder to hide the proceeds of illegal activities.

Form 8300 is in important tax document that you should not forget to file. It’s vital to report all your income and to file statements appropriately with the IRS to prevent tax evasion concerns or other accusations against you or your business.