J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Large Cash Transactions

WHO MUST REPORT

If you receive more than $10,000 in cash in 1 or more related transactions in the course of your business, you must report the transaction to the IRS. You must also report your reporting to the party that paid you. “Cash” for reporting purposes does not mean only currency; it includes cashier's checks, money orders, bank drafts, and traveler's checks having a face amount of $10,000 or less received in a transaction used to avoid this reporting requirement.

File Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

WHEN TO REPORT

The form must be filed with the IRS by the 15th day after the date the cash was received. For example, if you receive a payment of $12,000 on February 1, 2013, you must report it by February 15, 2013. If the deadline falls on a Saturday, Sunday, or legal holiday, file by the next business day.

You must give a written statement to the party who paid you, but you have until January 31 of the year following the year in which the cash was received to do so. For example, on that February 1, 2013, cash payment, your written statement must be furnished by January 31, 2014.

WHERE TO REPORT

File Form 8300 with the IRS, Detroit Computing Center, P.O. Box 32621, Detroit, MI 48232 (regardless of where you file your business return).

PENALTIES FOR NONFILING

Unless you can show your failure to timely report the transaction to the IRS and to the payer was due to reasonable cause, you may be subject to ...