IRS FORM 8300 COMPLIANCE AND AUDIT

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If we deal with large cash payments of more than $10,000.00, we must report this to the IRS by filing the IRS Form 8300. The form needs to be finished timely, correct, and complete notices to the person(s) required to be identified on the Form 8300. The purpose of this requirement is to provide valuable information to the IRS and Financial Crimes Enforcement Network (FinCEN) in their efforts to combat money laundering and to turn in identifying suspicious financial transactions.

Failure to file a correct Form 8300 and/or furnish correct written statements can subject you to severe civil and criminal penalties, especially when we intentionally disregard these requirements.

Form 8300 can be filed electronically or by mailing the form to the IRS at Detroit Computing Center, P.O. Box 32621, Detroit, Michigan 48232. If we mail Form 8300, mail it certified so we have proof of filing timely. When filing Form 8300, the individual or business is required to furnish a single, annual, written statement to each person whose name is set forth on Form 8300. The written statement must include name, address, contact person, and telephone of the individual or business filing the Form 8300, the total amount of reportable cash received in a 12-month period, and a statement that the information contained in the statement is being reported to the IRS. A business may use its invoice for the statement of notification, as long as the invoice includes all required information. A business must keep a copy of every Form 8300 it files, and the required written statement it sends to customers, for at least five years from the date filed.

Our firm helps business owners identify who must file Form 8300, when a Form 8300 must be filed, how to fill out and file Form 8300 to stay in compliance with the legislation.

We are intimately familiar with the Form 8300 Examination Process (Audits) and are often contacted in the early stages of these cash transactions investigations to compile information and respond to the IRS on the client’s behalf. Therefore, substantial preparation in advance is necessary for a favorable resolution these types of examinations.

If you negligently fail to file a Form 8300, or negligently fail to complete all the information, you will face a penalty of $250 per return, up to $3 million per calendar year. If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of $25,000, or the amount of cash you received and were required to report (up to $100,000).

If you believe you may not be in compliance with Form 8300 rules, are under audit or you receive a letter from IRS ECC-Detroit Hotline, please call us at 800.540.8478