From the Tax Law Offices of David W. Klasing -Do Individuals and Businesses Need to File Reports of Large Cash Transactions?

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Tax Law Offices of David W. Klasing, PC

Sep 03, 2020, 06:37 ET

IRVINE, Calif., Sept. 3, 2020 /PRNewswire/ -- Because large cash transactions are known to be involved in money laundering there is a law requiring any person that receives over $10,000 in cash to report this transaction on a IRS, Form 8300.

Failure to file form 8300 can lead to draconian civil and potential criminal penalties and major federal scrutiny that the taxpayer is wise avoid. At the Tax Law Offices of David W. Klasing, our experienced tax attorneys and CPAs are here to advise you on when and how you must file this form, the potential consequences for not filing, and how we can assist you throughout the process especially if a civil or criminal controversy develops over this reporting requirement.

For purposes of Form 8300, a "person" is an individual, company, corporation, partnership, association, trust, or estate. A transaction is defined as a lump sum, two or more related payments within 24 hours, or two or more related transactions within a 12 month period. Any coins or currency of the United States or any foreign nation qualify as cash, as well as cash equivalents that include cashier's checks, bank drafts, traveler's checks or money orders. If cash equivalents and cash are combined as part of a single transaction to reach more than $10,000, the transaction must be reported.

Generally, qualifying cash transactions must be reported by filing the form within 15 days after you receive the cash, unless the 15^th day falls on a weekend or holiday, in which case you have until the next business day.

The Form 8300 civil penalty for failure to accurately include all required information is $270 per required form. If failure was intentional or willful, the civil penalty will be the greater of $27,820 or the amount of cash received in the transaction, not to exceed $111,000. However, if you correct the issue within 30 days, the per form penalty is reduced from $270 to $50. Where your Form 8300 reporting failures are found to be willful or intentional, you could also face criminal prosecution.

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Public Contact: Dave Klasing Esq. M.S.-Tax CPA, [email protected]

SOURCE Tax Law Offices of David W. Klasing, PC