![]() However, besides helping to track down money laundering, the requirements imposed by these statutes also provide an avenue for identifying individuals and businesses using cash income that has not been reported for income tax. Cash monies received from illegal enterprises are often used to purchase high-dollar tangible goods, commodities, and real estate investment properties. The original intent behind these statutes was to enable the IRS and Treasury's Financial Crimes Enforcement Network (FinCEN) to detect and pursue money-laundering schemes. The form that is used to satisfy both reporting requirements is Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. This same information reporting requirement is mirrored in Section 5331 of the Bank Secrecy Act of 1970. 6050I has required that persons who, in their trade or business, receive more than $10,000 in cash in a transaction or a series of two or more related transactions file an information return reporting this to the IRS. The possibility of steep penalties for noncompliance makes it especially important for business clients to implement appropriate procedures and controls. While the penalties for negligent failure to comply with the Form 8300 reporting requirements are relatively mild, they become exponentially larger if the IRS determines that a business has intentionally disregarded the filing or notification requirements.Besides filing a Form 8300, the business on an annual basis must notify each person named in these forms about the information reported to the IRS.The reporting obligation cannot be avoided by separating a transaction into multiple transactions, because these will be considered "related transactions." Once a business receives more than $10,000 in cash, as defined, Form 8300 must be filed within 15 days.Beginning in 2024, the definition of cash for purposes of the reporting requirement will expand further to include payments made with digital assets such as virtual currencies, under a provision contained in the Infrastructure Investment and Jobs Act enacted in late 2021.The expanded definition of cash applies in transactions that involve the retail sale of a consumer durable (e.g., a car or boat), a collectible (e.g., artwork), or a travel or entertainment activity. "Cash" for purposes of this information reporting requirement generally means the currency of the United States and other countries, but in limited situations the definition encompasses cashier's checks, bank drafts, traveler's checks, and money orders.They do so on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Businesses generally must report cash transactions that exceed $10,000.
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