IRS Wants Businesses to E-file Cash Transaction Reports; It’s Quick, Simple and Free
You can now e-file cash transaction reports, and the IRS wants you to do it. Did you know that you have to file large transactions over $10,000 with the IRS? And now, The Internal Revenue Service wants businesses to e-file reports that represent large cash transactions. Businesses will benefit due to how fast and convenient filing these reports electronically is.
What’s the Easiest Way to File Cash Payments Over $10,000?
While filing a Form 8300, Report of Cash Payments Over $10,000, on paper, is still okay by the IRS. Many businesses now find that e-filing is a quicker, easier and cost-effective way to the IRS reporting deadline. A business has 15 days after a large cash transaction, and there’s no charge for the e-file option.
Why is E-filing Safer for Businesses?
Electronic filing is a secure option for a business to transmit sensitive information to the IRS. And, the e-filing the Form 8300 is another way to keep sensitive information from getting out there. However, we strongly advise you to always use a secure wi-fi connection and if you chose to keep copies of your information, encrypt the file. This keeps the file secure when you chose to keep a back up.
Do All Cash Deals Meet Legal Standards?
Not all cash deals are legitimate. That’s why the IRS wants businesses to e-file cash transaction reports – to stop money crime. I know, hard to believe right? However, when a business reports information on the form 8300 it wages war on tax evasion. You know, those people who try to get away with not paying taxes. We live in a day and age where there is a lot of illegal cash transactions going on. Here are some illegal cash transactions. Criminals who profit from drugs or take part in terrorist financing, illegal gambling, sex trafficing, and other unlawful activities. The government will often trace money from these illegal activities when a business reports a cash through the payments reports cash payments on this and other cash reporting forms.
What Should I Expect When I File Electronically?
First of all, filing electronically is more accurate when you e-file cash transaction reports. Next, filing electronically is free. Two good reasons to start, wouldn’t you say? And, when a business e-files, they immediately receive an automatic notice of receipt when they file. No waiting for something to come by mail from the IRS, which decreases the need for follow-up with the IRS. Also, because you eliminate the snail mail routine, electronic filing is takes sensitive inforamtion off the street.
How Do I File Cash Payments Over $10,000 Electronically?
To file Form 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. For any business that has an interest, call the BSA E-Filing Help Desk at 866-346-9478 or email them at BSAEFilingHelp@fincen.gov Monday through Friday from 8 a.m. to 6 p.m. Eastern time.
What are the IRS Reporting Requirement Cash Transactions?
A business must report any cash transaction that is $10,000 or more. When the cash transaction came from illegal activity, it is known as money laundering. For more information about the reporting requirement, see FS-2019-1, available on IRS.gov. Also, the IRS has a fact sheet that points out reporting examples for different businesses. For example, landlords, taxi companies, automobile dealerships, universities and colleges, bail-bonding agents and homebuilders. Make sure you visit the IRS website for other resources the government addresses with regarding to reporting cash transactions of more than $10,000.
Do You Need More Information as to How to E-file Cash Transaction Reports
When you have questions, Alex Franch, BS EA is available to help you understand what is necessary to e-file cash transaction reports. We look for accounting problems that affect small businesses. Alex can be reached at 781-849-7200 or email him at contactus@worthtax.com. Don’t forget tax season is going on now! Set up your tax appointment today! We offer numerous client discounts to save you money.
Alex Franch, BS EA
Alex is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Alex is an Enrolled Agent and has a decade of tax preparation experience. He is passionate about serving businesses with tax and financial planning.
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