Nearly 30 Years Of Positive Results

Photo Of Chaya Kundra

Remember to file form 8300 correctly to protect yourself

On Behalf of | Nov 13, 2018 | IRS Updates |

Form 8300 is an important tax document. It is required to fill out this form if your business accepts a cash payment over $10,000. This form provides information to the Internal Revenue Service, which helps it fight against money laundering.

Anyone in a trade who accepts $10,000 or more in a cash-based transaction needs to fill out this form. Cash, on the whole, is not easy to trace, so without filing this form, it may be impossible to prove where the money came from or where it went. The form is required if you complete the transaction within the 50 states, Guam, Puerto Rico, the Northern Mariana Islands, the American Samoa or the U.S. Virgin Islands.

How soon do you have to file form 8300?

If you receive a cash transaction, you need to file the form within 15 days of receiving the money. The form is easy to file and may be submitted electronically online, which is a benefit to many business owners. If you prefer not to submit documents electronically, you can file the form by mailing it to the IRS directly.

Are there any extra steps to take after filing the form?

After filing for 8300, there is one additional step to take. You’ll have to submit a written statement to each person who is listed on the form. This needs to include the contact person, name, address and telephone number of your business. You must include how much cash was received to require the form to be filed, and you need to show that the business had to report the payment to the IRS.

What happens if you don’t file form 8300 or furnish written acknowledgments?

That is a major offense, and it can lead to criminal or civil penalties if you don’t do what you are supposed to. The penalties include increasing penalty amounts, which are adjusted every year to account for inflation.

It is always important to file the appropriate documents as a business owner. Not doing so can threaten your business and your freedoms.

The Internal Revenue Service is serious about appropriate filing methods. Even if you don’t think you’ve done anything wrong, you could still end up facing penalties that are costly to take care of. Make sure you get the right guidance for your business, so you don’t have to worry about mistakes when you file your taxes since they could threaten you.