On Aug. 30, the IRS announced that the form used by businesses to report cash payments exceeding $10,000 will need to be submitted electronically beginning January 1, 2024. (IR 2023-157)
This pertains to Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, which is filed by applicable individuals, companies, corporations, partnerships, associations, and trusts or estates as part of the IRS's and the Financial Crimes Enforcement Network's efforts to crack down on money laundering. The reporting requirement triggers when a taxpayer receives cash over $10,000 in a single transaction or in related transactions conducted in any of the 50 U.S. states, as well as Washington, D.C., and U.S. territories.
"The new requirement for e-filing Forms 8300 applies to businesses mandated to e-file certain other information returns, such as Forms 1099 series and Forms W-2," the IRS explained in the announcement. "Electronic filing and communication options will be simpler and will make it easier to interact with the IRS. Beginning with calendar year 2024, businesses must e-file all Forms 8300 (and other certain types of information returns required to be filed in a given calendar year) if they're required to file at least 10 information returns other than Form 8300."
Businesses can submit a Form 8508, Application for a Waiver from Electronic Filing of Information Returns, but the IRS clarified that if a waiver is granted, it applies to all information returns for a calendar year. Waiver requests cannot be submitted only for Forms 8300.
The IRS warned that e-filing confirmation emails by themselves are not enough to satisfy the new record keeping requirement. "When e-filing, filers must also save a copy of the form prior to finalizing the form submission," according to the release. "They should associate the confirmation number with the saved copy. Prior to finalizing the form for submission, businesses should save a copy of the form electronically or print a copy of the form." Copies of each Form 8300 e-filed and any supporting documents need to be kept for five years from the filing date.
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