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

Small Cash Transactions

WHO MUST REPORT

If you are in a business that sells or redeems money orders or traveler's checks in excess of $1,000 per customer per day or issues your own value cards, you are asked by the government to report suspicious transactions that exceed $2,000. Such businesses include convenience stores, groceries, liquor stores, travel agencies, courier services, and gas stations (the government estimates that there are about 158,000 business within these categories and that they provide financial services of $200 billion each year).

Suspicious activities include a customer who:

• Attempts to bribe or threaten you or your employee
• Buys multiple money orders in even hundred-dollar denominations or in unusual quantities
• Provides false or expired identification
• Refuses to proceed with a transaction once you notify him/her that a form will be completed
• Tries to keep the transaction from being reported or asks you how to avoid reporting requirements
• Works with 1 or more other individuals who split up to conduct separate transactions that combine for more than $3,000

File Form TD F 90-22.56, Suspicious Activity Report by Money Services Businesses. Filing the form does not give you any financial exposure; you have complete protection from civil liability (the person you report cannot sue you for damages).

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