Irs Publication 1544 - Reporting Cash Payments

Exception for certain bank loans. A cash

ultimate consumers in the ordinary course

More than 24 hours between transactions.

ier's check, bank draft, traveler's check, or

of your trade or business.

Transactions are related even if they are more

money order is not treated as cash if it is the

than 24 hours apart if you know, or have reason

proceeds from a bank loan. As proof that it is

Taxpayer Identification

to know, that each is one of a series of connec

from a bank loan, you may rely on a copy of the

ted transactions.

Number (TIN)

loan document, a written statement or lien in

For example, you are a travel agent. A client

struction from the bank, or similar proof.

pays you $8,000 in cash for a trip. Two days

You must furnish the correct TIN of the person

later, the same client pays you $3,000 more in

or persons from whom you receive the cash. If

Example. You are a car dealer. Mandy

cash to include another person on the trip.

the transaction is conducted on the behalf of

White buys a new car from you for $11,500.

These are related transactions, and you must

another person or persons, you must furnish the

She pays you with $2,000 of U.S. currency and

file Form 8300 to report them.

TIN of that person or persons. If you do not

a cashier's check for $9,500 payable to you and

know a person's TIN, you have to ask for it. You

her. You can tell that the cashier's check is the

What About

may be subject to penalties for an incorrect or

proceeds of a bank loan because it includes in

Suspicious Transactions?

missing TIN.

structions to you to have a lien put on the car as

security for the loan. For this reason, the cash

There are three types of TINs.

If you receive $10,000 or less in cash, you may

ier's check is not treated as cash. You do not

1. The TIN for an individual, including a sole

voluntarily file Form 8300 if the transaction ap

have to file Form 8300 for the transaction.

proprietor, is the individual's social secur

pears to be suspicious.

ity number (SSN).

Exception for certain installment sales. A

A transaction is suspicious if it appears that

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

2. The TIN for a nonresident alien individual

a person is trying to cause you not to file Form

money order is not treated as cash if it is re

who needs a TIN but is not eligible to get

8300 or is trying to cause you to file a false or

ceived in payment on a promissory note or an

an SSN is an IRS individual taxpayer iden

incomplete Form 8300, or if there is a sign of

installment sales contract (including a lease that

tification number (ITIN). An ITIN has nine

possible illegal activity.

is considered a sale for federal tax purposes).

digits, similar to an SSN.

However, this exception applies only if:

If you are suspicious, you are encouraged to

3. The TIN for other persons, including cor

call the local IRS Criminal Investigation Division

1. You use similar notes or contracts in other

porations, partnerships, and estates, is the

as soon as possible. Or, you can call the Fin

sales to ultimate consumers in the ordi

employer identification number (EIN).

CEN Financial Institution Hotline toll free at

nary course of your trade or business, and

18665563974.

Exception. You are not required to provide the

2. The total payments for the sale that you

TIN of a person who is a nonresident alien indi

receive on or before the 60th day after the

vidual or a foreign organization if that person or

When, Where,

sale are 50% or less of the purchase price.

foreign organization:

and What To File

Exception for certain down payment plans.

1. Does not have income effectively connec

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

ted with the conduct of a U.S. trade or

or money order is not treated as cash if you re

The amount you receive and when you receive

business;

ceived it in payment for a consumer durable or

it determine when you must file. Generally, you

2. Does not have an office or place of busi

collectible, and all three of the following state

must file Form 8300 within 15 days after receiv

ness, or a fiscal or paying agent in the Uni

ments are true.

ing a payment. If the Form 8300 due date (the

ted States;

15th or last day you can timely file the form) falls

1. You receive it under a payment plan re

on a Saturday, Sunday, or legal holiday, it is de

3. Does not file a federal tax return;

quiring:

layed until the next day that is not a Saturday,

4. Does not furnish a withholding certificate

a. One or more down payments, and

Sunday, or legal holiday.

described in §1.14411(e)(2) or (3) or

b. Payment of the rest of the purchase

1.14415(c)(2)(iv) or (3)(iii) to the extent

More than one payment. In some transac

price by the date of sale.

required under 1.14411(e)(4)(vii);

tions, the buyer may arrange to pay you in cash

2. You receive it more than 60 days before

installment payments. If the first payment is

5. Does not have to furnish a TIN on any re

the date of sale.

more than $10,000, you must file Form 8300

turn, statement, or other document as re

within 15 days. If the first payment is not more

quired by the income tax regulations under

3. You use payment plans with the same or

than $10,000, you must add the first payment

section 897 or 1445; or

substantially similar terms when selling to

and any later payments made within 1 year of

ultimate consumers in the ordinary course

6. In the case of a nonresident alien individ

the first payment. When the total cash pay

of your trade or business.

ual, the individual has not chosen to file a

ments are more than $10,000, you must file

joint federal income tax return with a

Form 8300 within 15 days.

Exception for travel and entertainment. A

spouse who is a U.S. citizen or resident.

After you file Form 8300, you must start a

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

new count of cash payments received from that

money order received for travel or entertain

What Is a

buyer. If you receive more than $10,000 in addi

ment is not treated as cash if all three of the fol

Related Transaction?

tional cash payments from that buyer within a

lowing statements are true.

12month period, you must file another Form

1. You receive it under a payment plan re

8300. You must file the form within 15 days of

Any transactions between a buyer (or an agent

quiring:

the payment that causes the additional pay

of the buyer) and a seller that occur within a

ments to total more than $10,000.

a. One or more down payments, and

24hour period are related transactions. If you

If you are already required to file Form 8300

receive over $10,000 in cash during two or

b. Payment of the rest of the purchase

and you receive additional payments within the

more transactions with one buyer in a 24hour

price by the earliest date that any

15 days before you must file, you can report all

period, you must treat the transactions as one

travel or entertainment item (such as

the payments on one form.

transaction and report the payments on Form

airfare) is furnished for the trip or en

8300.

tertainment event.

Example. On January 10, you receive a

cash payment of $11,000. You receive addi

For example, if you sell two products for

2. You receive it more than 60 days before

tional cash payments on the same transaction

$6,000 each to the same customer in 1 day and

the date on which the final payment is due.

of $4,000 on February 15, $5,000 on March 20,

the customer pays you in cash, these are rela

3. You use payment plans with the same or

ted transactions. Because they total $12,000

and $6,000 on May 12. By January 25, you

substantially similar terms when selling to

(more than $10,000), you must file Form 8300.

must file a Form 8300 for the $11,000 payment.

Publication 1544 (September 2012)

Page 3

Irs Publication 1544 - Reporting Cash Payments - 2012 Page 3

Related Articles

Related forms

Related Categories