Did your business receive more than $10,000 in cash in a single transaction or related transactions in 2022? If so, in addition to filing Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business) with the IRS by the 15th day after the transaction occurred, you need to provide, by January 31, written statements to the parties you listed on Form 8300 in 2022. The statement must include the name, address, contact person, and telephone number of your business and the total amount of reportable cash. The statement also must disclose that this information was provided to the IRS.
Transactions that require Form 8300 include:
- Escrow arrangement contributions
- Pre-existing debt payments
- Negotiable instrument purchases
- Reimbursement of expenses
- Making or repaying a loan
- Sale of goods or services, real property, or intangible property
- Rental of real or personal property
- Exchange of cash for other cash
Note that the IRS has issued FAQs on this topic for motor vehicle dealerships in particular as car dealerships often receive cash in excess of $10,000 and as such are generally subject to these reporting requirements.
Some businesses send out the statements when they file Form 8300, but others wait to do this at the start of the new year—so if your business filed Form(s) 8300 in 2022, make sure to send out statements to each party listed on that form by January 31, 2023. Failure to file Form 8300 and provide the related written statements to each person named on the form may result in civil and criminal penalties.
For more information, see the IRS Form 8300 Reference Guide. If you have questions or need assistance, please reach out to a professional at FORVIS or submit the Contact Us form below.