Many small business owners are totally unaware they are breaking the law once they accept cash payments over $10,000. What they do not know could cost them huge fines from the IRS. This form can be filed online or on paper. Additionally, the business must notify the individual from whom they admitted that the payment no later than January 31 of the year after the filing.
The penalties for not filing can be enormous. The intentional disregard penalty for failure to report is that the greater of $25,000 or the amount of cash received in this transaction to not exceed $100,000. Failure to submit a timely return can run $50 to $100 each transaction.
Breaking a transaction into two payments does not enable you to avoid filing. The IRS counts more than one payment related to one transaction as still being subject to the $10,000 limitation. For instance, if a business sold a tractor and obtained a $7,000 cash deposit on the order, delivered the Highway some time later and received the $5,000 balance as money, which would be counted as a $12,000 transaction and requires the filing of a form 8300. It is not necessary to report transactions using cashiers checks or money orders, but any form of money or money is subject to the limitations.
When a business sells a customer an item for $9,000 cash one month and a month after the exact same customer purchases a totally different thing for cash, 소액결제 현금화 that is considered two distinct transactions rather than subject to filing. However, if the two sales happened within a 24 hour period they’d be subject to the limitation. In case a business leases a room to someone who pays $2,000 a month rent in cash and the entire cash rent paid during a calendar year exceeds $10,000, then that’s subject to this limitation because it is all related to one transaction.
It gets fairly tricky sometimes to ascertain when the limit was exceeded. When in doubt consult your accountant or the IRS site for additional definition, or you may call the IRS for information. Form 8300 is available online or wherever you purchase IRS forms. In addition, it can be filed electronically online. Take care to always report these transactions within 15 days.