What Is Form 8300 and How Do You File It?

What should you do if a client hands you a large stack of dollar bills to pay for your services? Do you just pocket the money and go on your way? 

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That might sound shady…and it is if you don’t report it to the Internal Revenue Service (IRS). As a business owner, you need to report any cash transaction exceeding $10,000 via Form 8300. It’ll save you a lot of trouble (and money). 

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But what, exactly, is the 8300 form? And how do you file it? We’ll cover all that and more, so let’s dive in!

What Is Form 8300?

Form 8300 is a document you fill out with the IRS within 15 days of receiving a single transaction or multiple related transactions in cash of over $10,000. 

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For instance, let's say a client comes to your construction company to purchase machinery worth $15,000. They pay $4,000 in cash upfront and give you the remaining $11,000 in cash after three weeks. 

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Even though the client paid you in installments, the aggregate amount (or the total amount) exceeded $10,000. So you should report that to the IRS.

Who Fills Out IRS Form 8300?

Any person who receives more than $10,000 in cash and lives in the United States or a U.S. territory must file Form 8300. 

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A 'person' here refers to any individual, partnership, company, trust, corporation, or estate.

What Happens When IRS Form 8300 Is Filed?

The IRS uses Form 8300 to track large cash payments and suspicious transactions to prevent money laundering and other such crimes. 

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How does tracking cash paymets help?

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Individuals engaged in illegal activities, such as tax evasion or drug dealing, often use cash for transactions. So, Form 8300 is a way for the government to spot any suspicious activity, and it behooves you to fill it out in case the person paying you is doing something unsavory. You wouldn’t want the IRS to turn their attention toward you because you failed to report that transaction.

What Counts as Cash on the 8300 Form?

When talking about cash, the IRS doesn’t just mean American dollars. The IRS also considers foreign currency as cash. 

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Besides foreign currency, cash on 8300 form can also refer to bank drafts, cashier's checks, money orders, and traveler's checks worth $10,000 or less if it seems that the client is trying to avoid reporting the transaction.  

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For example, let's say a client purchases machinery worth $14,000 from your construction company. They then pay with two cashier's checks worth $7,000 each. There’s a chance the client may be avoiding the watchful eyes of the IRS since banks report to the IRS whenever they issue a cashier’s check, money order, or bank draft worth $10,000 or more. 

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Conversely, cash doesn't include a personal check from someone's bank account.

Requirements for Filling Out Form 8300

Here’s the information you need to fill a Form 8300. 

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Part I—Identity of the individual from whom the cash was received:

• Name and address
• Taxpayer identification number 
• Identifying document (driver’s license, passport, or another official document)
  
  

Part II—Person on whose behalf this transaction was conducted:

• Name and address (organization’s name and address if it’s an organization)
• Taxpayer identification number (and employer identification number if they have one)
• Identifying document (driver’s license, passport, or another official document)

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Check box 15 if there is more than one party, and fill in information for other parties in the “Multiple Parties” section. 

‍Part III—Description of transaction and method of payment:

• Date of transaction
• Amount of cash in dollar equivalents (convert foreign currency transaction into dollars)
• Purpose of the transaction (personal properly, debt repayment, escrow or trust funds, or sale of intangible property)
  
  

Part IV—Business that received cash:

• Business name and address
• Employer identification number (and Social Security number if you’re a sole proprietor)
• Phone number and name of the contact person

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If you’re filling out the form for your business, your details will go in Part IV. If the cash transactions involve more than one party, you have to fill in the applicable fields on page 2 under “Multiple Parties.”   

How Do You File Form 8300?

Once you complete Form 8300, you can submit it in two ways—electronically through the Financial Crimes Enforcement Network (FinCEN) or via mail. 

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To submit online, use FinCEN's Bank Secrecy Act (BSA) E-Filing System by googling FinCEN Form 8300 or accessing the BSA E-Filing System directly. You'll receive an electronic acknowledgment of each submission.

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If you choose to file Form 8300 by mail, send the form to the IRS at the following address: 

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Internal Revenue Service

Computing Center

P.O. Box 32621

Detroit, MI 48232

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You must also send a written statement to every payer you completed Form 8300 for during the year. You must send those statements on or before January 31 of the following year. The statement must include the:

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• The total amount of money you received during the 12-month period
• Name and address of your company
• Name and details of the contact person in your business 

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Also, remember that besides filing Form 8300, the IRS requires you to file your annual tax returns—whether you’re self-employed, a small business, a corporation, or a partnership.

What Are the Penalties if You Don’t Submit Form 8300?

If you fail to comply with Form 8300 reporting requirements, the IRS fines you $290 per return, up to a maximum of $3,532,500 per calendar year. Those penalties are adjusted annually for inflation, and are set to rise to $310 per form, up to a maximum of $3,783,000 per year for 2023.

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Willful violators risk criminal penalties, including a fine of up to $25,000 ($100,000 for corporations) and a prison sentence of up to five years plus the prosecution costs. Anyone who knowingly files Form 8300 with incorrect information can face fines of up to $100,000 ($500,000 for corporations) and up to three years of imprisonment, plus prosecution costs.

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So, it's better to file your Form 8300, be truthful, and comply with the law.

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You should also keep records of the other forms you’ve filed and when you filed them. These include:

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• Business asset records 
• Income tax returns and supporting documents
• Ledgers and other important documents
• Employment tax records 
• Human resources files
• Bank account and credit card statements
• Canceled checks

The Bottom Line: Submit Form 8300 ASAP!

There you have it. If your company typically handles huge cash transactions, you need to familiarize yourself with Form 8300.

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The good news is that we’ve shared everything there is to know about Form 8300. So, if you happen to receive $10,000 in cash, you'll know exactly what you need to do to comply with the law: Report it right away via Form 8300.