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Major Change Coming Soon for Filing IRS Form 8300

It is essential for independent dealers to understand IRS Form 8300. Let's unravel the layers of this critical reporting requirement and equip you with the knowledge you need to stay compliant. Generally, if you're in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300. As of January 1, 2024, there has been a significant change to the way you must file this form. This article explores what this form is, who must file, and the recent change to the law.

The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides valuable information to the Internal Revenue Service and the Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering. Money is "laundered" to conceal illegal activity, including the crimes that generate the money itself, such as drug trafficking, tax evasion and terrorist financing.

Who Must File

A "person" who must file Form 8300 includes an individual, company, corporation, partnership, association, trust or estate.
You must file Form 8300 electronically with FinCEN, or in paper-form with the IRS
 

When and How to File

You must file Form 8300 within 15 days after the date the cash transaction occurred. Besides filing Form 8300, you also need to provide a written statement to each party whose name you included on the Form 8300 by January 31 of the year following the reportable transaction. Effective January 1, 2024, you must electronically file (e-file) Forms 8300 if you're required to e-file other information returns, such as Forms 1099 series and Forms W-2. You must e-file your Forms 8300 if you're required to file at least 10 information returns of one or more type(s) other than Form 8300 during a calendar year.

For example, if you're required to file five Forms W-2 and five Forms 1099-INT, then you're required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 total information returns other than Forms 8300, you're not required to file the information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the electronic filing requirement.
 
Keep in mind, if you're not required to e-file, you can still choose to do so.
Businesses that are not required to file their Forms 8300 electronically that choose to physically mail in their Forms 8300 to the IRS
 

Waivers

You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Request for Waiver from Filing of Information Returns. If the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the duration of the calendar year.
You must include the word 'WAIVER' on the center top of each Form 8300 (Page 1) when submitting the paper filed returns.
Note: Waivers for electronic filing are not required when business files less than 10 total information returns other than Forms 8300.
 

Penalty for Paper Filing

If you are required to e-file but file by paper and you don't have a waiver or religious exemption, you will be subject to a failure to file penalty.
 

Late Returns

You must identify late returns. You must file a late Form 8300 in the same way, either electronically or on paper, as a timely filed Form 8300. When filing a late Form 8300 electronically you must include the word "LATE" in the comments section of the return. When filing a late Form 8300 on paper you must write "LATE" on the center top of each Form 8300 (Page 1).
Note: Failure to file timely includes a failure to file in the required manner. If you are required to file electronically and failed to do so, Form 8300 would be considered late. Forms 8300 that are late are subject to penalty.
 

Recordkeeping

Remember, you must keep a copy of Form 8300 for five years. When e-filing, be sure to save a copy of the form before you finish submitting the return. Confirmation receipts don't meet the recordkeeping requirement. You should associate the confirmation number with the saved copy.
 

Form 8300 Resources

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