Irs Publication 1544 - Reporting Cash Payments

clerks of federal or state courts are discussed

a. One lump sum of over $10,000,

is more than $10,000. You do not have to file

later under Bail received by court clerks.

Form 8300 for this transaction.

b. Installment payments that cause the

total cash received within 1 year of the

However, you do not have to file Form 8300

Designated

initial payment to total more than

if the transaction is not related to your trade or

Reporting Transaction

$10,000, or

business. For example, if you own a jewelry

store and sell your personal automobile for

c. Other previously unreportable pay

A designated reporting transaction is the retail

more than $10,000 in cash, you would not sub

ments that cause the total cash re

sale of any of the following:

mit a Form 8300 for that transaction.

ceived within a 12month period to to

1. A consumer durable, such as an automo

tal more than $10,000,

Transaction defined. A “transaction” occurs

bile or boat. A consumer durable is prop

3. Received in the course of your trade or

when:

erty, other than land or buildings, that:

business,

Goods, services, or property are sold;

a. Is suitable for personal use,

4. Received from the same buyer (or agent),

Property is rented;

b. Can reasonably be expected to last at

and

Cash is exchanged for other cash;

least 1 year under ordinary use,

5. Received in a single transaction or in rela

A contribution is made to a trust or escrow

c. Has a sales price of more than

ted transactions (defined later).

account;

$10,000, and

A loan is made or repaid; or

What Is Cash?

d. Can be seen or touched (tangible

Cash is converted to a negotiable instru

property).

ment, such as a check or a bond.

Cash is:

For example, a $20,000 car is a con

Person defined. A “person” includes an indi

1. The coins and currency of the United

sumer durable, but a $20,000 dump truck

vidual, a company, a corporation, a partnership,

States (and any other country), and

or factory machine is not. The car is a con

an association, a trust, or an estate.

sumer durable even if you sell it to a buyer

2. A cashier's check, bank draft, traveler's

Exempt organizations, including employee

who will use it in a business.

check, or money order you receive, if it

plans, are also “persons.” However, exempt or

has a face amount of $10,000 or less and

ganizations do not have to file Form 8300 for a

2. A collectible (for example, a work of art,

you receive it in:

morethan$10,000 charitable cash contribution

rug, antique, metal, gem, stamp, or coin).

they receive since it is not received in the

a. A designated reporting transaction

3. Travel or entertainment, if the total sales

course of a trade or business.

(defined later), or

price of all items sold for the same trip or

entertainment event in one transaction (or

b. Any transaction in which you know the

Foreign transactions. You do not have to file

related transactions) is more than

payer is trying to avoid the reporting of

Form 8300 if the entire transaction (including

$10,000.

the transaction on Form 8300.

the receipt of cash) takes place outside of:

The 50 states,

Cash may include a cashier's check

To figure the total sales price of all items

The District of Columbia,

even if it is called a “treasurer's check”

sold for a trip or entertainment event, you in

or “bank check.”

Puerto Rico, or

clude the sales price of items such as airfare,

CAUTION

A possession or territory of the United

hotel rooms, and admission tickets.

Cash does not include a check drawn on an

States.

individual's personal account.

Example. You are a travel agent. Ed John

However, you must file Form 8300 if any part of

son asks you to charter a passenger airplane to

A cashier's check, bank draft, traveler's

the transaction (including the receipt of cash)

take a group to a sports event in another city.

check, or money order with a face amount of

occurs in Puerto Rico or a possession or terri

He also asks you to book hotel rooms and ad

more than $10,000 is not treated as cash.

tory of the United States and you are subject to

mission tickets for the group. In payment, he

These items are not defined as cash and you

the Internal Revenue Code.

gives you two money orders, each for $6,000.

do not have to file Form 8300 when you receive

You have received more than $10,000 cash in

them because, if they were bought with cur

Bail received by court clerks. Any clerk of a

this designated reporting transaction. You must

rency, the bank or other financial institution that

federal or state court who receives more than

file Form 8300.

issued them must file a report on FinCEN Form

$10,000 in cash as bail for an individual

104.

charged with any of the following criminal offen

Retail sale. The term “retail sale” means any

ses must file Form 8300:

sale made in the course of a trade or business

Example 1. You are a coin dealer. Bob

1. Any federal offense involving a controlled

that consists mainly of making sales to ultimate

Green buys gold coins from you for $13,200.

substance,

consumers.

He pays for them with $6,200 in U.S. currency

Thus, if your business consists mainly of

and a cashier's check having a face amount of

2. Racketeering,

making sales to ultimate consumers, all sales

$7,000. The cashier's check is treated as cash.

3. Money laundering, and

you make in the course of that business are re

You have received more than $10,000 cash

tail sales. This includes any sales of items that

and must file Form 8300 for this transaction.

4. Any state offense substantially similar to

will be resold.

(1), (2), or (3) above.

Example 2. You are a retail jeweler. Mary

Broker or intermediary. A designated report

For more information about the rules that apply

North buys an item of jewelry from you for

ing transaction includes the retail sale of items

to court clerks, see Section 1.6050I2 of the In

$12,000. She pays for it with a personal check

come Tax Regulations.

payable to you in the amount of $9,600 and

(1), (2), or (3) of the preceding list, even if the

traveler's checks totaling $2,400. Because the

funds are received by a broker or other interme

What Payments

personal check is not treated as cash, you have

diary, rather than directly by the seller.

not received more than $10,000 cash in the

Must Be Reported?

transaction. You do not have to file Form 8300.

Exceptions to Definition of Cash

You must file Form 8300 to report cash paid to

Example 3. You are a boat dealer. Emily

A cashier's check, bank draft, traveler's check,

you if it is:

Jones buys a boat from you for $16,500. She

or money order you received in a designated re

pays for it with a cashier's check payable to you

porting transaction is not treated as cash if one

1. Over $10,000,

in the amount of $16,500. The cashier's check

of the following exceptions applies.

2. Received as:

is not treated as cash because its face amount

Page 2

Publication 1544 (September 2012)

Irs Publication 1544 - Reporting Cash Payments - 2012 Page 2

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