Many small business owners are completely unaware they are breaking the law when they accept cash payments over $10,000. What they don’t know could cost them huge fines from the IRS. This form can be filed online or on paper. Moreover, the business must notify the person from whom they accepted that the payment no later than January 31 of the year following the filing.
The penalties for not filing could be enormous. The intentional disregard penalty for failure to report is that the higher of $25,000 or the quantity of money received in this transaction to not exceed $100,000. Failure to submit a timely return can run $50 to $100 per transaction. For businesses with gross receipts not exceeding $5 million, the aggregate annual limitation is $500,000.
Breaking a transaction into two payments does not enable you to avoid filing. The IRS counts greater 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 purchase, 소액결제 현금화 delivered the tractor a while later and got the $5,000 balance as cash, which would be counted as a $12,000 transaction and requires that the filing of a form 8300. It’s not necessary to report transactions using cashiers checks or money orders, but any form of money or money is subject to the limitations.
If a business sells a customer a product for $9,000 cash one month and a month after the exact same customer purchases an entirely different thing for money, that’s considered two separate transactions rather than subject to filing. However, if the 2 sales occurred inside a 24 hour period they would be subject to the limitation. If a business leases a space to someone who pays $2,000 per month rent in money and the total cash rent paid during a calendar year exceeds $10,000, then that is subject to this limitation because it is all related to one transaction.
It becomes rather tricky sometimes to ascertain when the limit has been exceeded. If consult your accountant or the IRS site for further definition, or you may call the IRS for advice. Form 8300 can be obtained online or wherever you purchase IRS forms. It can also be filed electronically on line. Better to be safe than sorry.