New IRS Requirement | Electronic Filing of Form 8300 for Cash Payments Over $10,000.Starting in 2024, the Internal Revenue Service (IRS) is implementing a significant change in the way businesses report cash payments exceeding $10,000.
New IRS Requirement | Electronic Filing of Form 8300 for Cash Payments Over $10,000
This shift mandates electronic filing (e-filing) of Form 8300, also known as the Report of Cash Payments Over $10,000, replacing the traditional paper filing method. This transformation aligns with recent amendments to e-filing regulations for various information returns, including Form 8300.
Why the Change? Combating Illicit Activities
Businesses that receive cash payments exceeding $10,000 must report these transactions to the U.S. government. While most cash transactions are legitimate, the information reported on Form 8300 plays a crucial role in combatting tax evasion, money laundering, drug trade profits, terrorist financing, and other criminal activities. Timely, complete, and accurate submissions on Form 8300 aid the government in tracing funds from such illegal activities.
Simplified Electronic Filing for Certain Businesses
This new e-filing requirement extends to businesses mandated to e-file specific other information returns, such as the Forms 1099 series and Forms W-2. The IRS aims to streamline electronic filing and communication processes, making interactions more convenient for businesses. Beginning in the calendar year 2024, businesses must e-file all Forms 8300 if they are required to file at least 10 information returns, excluding Form 8300.
For instance, if a business submits five Forms W-2 and five Forms 1099-INT, it must e-file all information returns, including Form 8300. However, if the business files fewer than 10 information returns of any type, excluding Form 8300, it is not obliged to e-file the information returns but can still choose to do so.
Waivers for Undue Hardship
In cases of undue hardship, a business may request a waiver from electronically filing information returns. Detailed information can be found in Form 8508, titled “Application for a Waiver from Electronic Filing of Information Returns.” If the IRS grants a waiver for e-filing any information return, it automatically applies to all Form 8300 submissions for the entire calendar year. However, it’s essential to note that a waiver request specifically for Form 8300 electronic filing is not permissible.
When submitting a paper-filed return, businesses seeking a waiver must prominently include the word “Waiver” at the center top of each Form 8300 (Page 1).
Exemptions Based on Religious Beliefs
Individuals with religious beliefs that conflict with the technology required for e-filing are automatically exempt from electronically filing Form 8300. In such cases, the word “RELIGIOUS EXEMPTION” should be clearly displayed at the center top of each Form 8300 (Page 1) when submitting a paper filing.
Late Filing and Recordkeeping
Businesses are responsible for identifying late returns and must file them in the same manner as timely returns, either electronically or on paper. When filing a late Form 8300 electronically, the term “LATE” should be added to the comments section of the return. In the case of a paper filing, “LATE” must be written at the center top of each Form 8300 (Page 1).
Moreover, businesses must retain copies of every Form 8300 filed, along with supporting documentation and the required statement sent to customers, for a period of five years from the filing date. While e-filing provides confirmation, e-mail acknowledgments alone do not meet the record-keeping requirement. Therefore, filers must save a copy of the form and associate the confirmation number with it before finalizing the submission.
Many businesses have already found the free and secure e-filing system to be a convenient and cost-effective way to meet the 15-day reporting deadline after a transaction. E-filers receive free email acknowledgment of their form’s receipt and can batch e-file multiple reports.
To e-file Forms 8300, businesses must create an account with the Financial Crimes Enforcement Network’s BSA E-Filing System, with the IRS ensuring the privacy and security of taxpayer data.
Need More Information?
For additional details, interested businesses can contact the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email [email protected]. Further information about the BSA E-Filing System can be obtained by submitting a technical support request at Self Service Help Ticket. The help desk operates Monday through Friday from 8 a.m. to 6 p.m. EST.
For comprehensive information about the reporting requirement, businesses can visit IRS.gov under “E-file Form 8300: Reporting of large cash transactions.”
To assist businesses in preparing and filing reports accurately, the IRS has produced a video titled “How to Complete Form 8300 – Part I, Part II.” This informative video highlights sections of Form 8300 prone to mistakes and offers guidance on accurate completion.
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