IRS Updates Cash Payment Reporting for 2024

The IRS announced new requirements for businesses filing significant cash payments. 

Generally, a business that receives more than $10,000 in cash in a single transaction or related transitions must file Form 8300. 

Beginning Jan. 1, 2024, businesses will be required to electronically file Form 8300 rather than a paper return. 

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. 

IRS officials said information reported on Forms 8300 can help combat those who evade taxes, profit from the drug trade, engage in terrorist financing, or conduct other criminal activities. 

The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete, and accurate.

Requirements 

Businesses must set up and account with the Financial Crimes Enforcement Network’s BSA E-Filing System to correctly file electronically. 

Businesses must keep a copy of every Form 8300 it files as well as any supporting documentation for five years from the date filed. 

E-file confirmation emails alone will not meet the recordkeeping requirement.  

Businesses must keep a copy of every Form 8300 as well as any supporting documentation for five years. 

Businesses should know that there are exemptions for businesses who are unable to comply due to an undue hardship. 

Businesses should file a request for a waiver if that is the case. 

If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Forms 8300 for the duration of the calendar year. 

A business may not request a waiver from filing only Forms 8300 electronically. The IRS released two videos to support employers with electronically completing the form.