(Received in a
Trade or Business)
If, in a 12-month period, you receive more than $10,000 in cash from one buyer as a result of a transaction in your trade or business, you must report it to the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.
This publication explains why, when, and where to report these cash payments. It also discusses the substantial penalties for not reporting them.
Some organizations do not have to file Form 8300, including financial institutions who must file FinCEN Form 104 (formerly Form 4789), Currency Transaction Report, and casinos who must file FinCEN Form 103 (formerly Form 8362), Currency Transaction Report by Casinos. They are not discussed in this publication.
This publication explains key issues and terms related to Form 8300. You should also read the instructions attached to the form. They explain what to enter on each line.taxmap/pubs/p1544-000.htm#en_us_publink1000117647
Drug dealers and smugglers often use large cash payments to "launder" money from illegal activities. Laundering means converting "dirty" or illegally-gained money to "clean" money.
The government can often trace this laundered money through the payments you report. Laws passed by Congress require you to report these payments. Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities.
The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism.