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ince 1985, Sec. 6050I has required resources.3 Coincidentally, the IRS has
Sthat persons who, in their trade or recently reminded businesses of their Once a reporting
Form 8300 reporting obligations. IRS
business, receive more than $10,000
news releases and accompanying fact requirement is
in cash in a transaction or a series of
sheets in 20194 and 20205 and again
two or more related transactions file an triggered, there is a
in 20216 summarize the requirements
information return reporting this to the for reporting large cash transactions. 15-day window to file
IRS. This same information reporting It is also worth noting that the current the Form 8300.
requirement is mirrored in Section commissioner is very familiar with the
reporting requirements of Form 8300,
5331 of the Bank Secrecy Act of 1970.
having once published an article digital assets as payment for transactions.
The form that is used to satisfy both
about it.7 The Infrastructure Investment and Jobs
reporting requirements is Form 8300,
Many traditional cash-intensive busi- Act,8 signed into law on Nov. 15, 2021,
Report of Cash Payments Over $10,000 nesses are well versed in these report- modifies Sec. 6050I to include digital
Received in a Trade or Business. ing requirements, including dealers in assets, including cryptocurrencies, in the
The original intent behind these automobiles, recreational vehicles, boats, definition of cash for purposes of Form
statutes was to enable the IRS and and jewelry, as well as pawnbrokers, 8300. This modification applies for
Treasury’s Financial Crimes Enforce- bail bondsmen, attorneys, insurance return filings and customer statements
ment Network (FinCEN) to detect and companies, and travel agencies. Within furnished after Dec. 31, 2023.
pursue money-laundering schemes. Cash the last decade, cannabis businesses have Once a reporting requirement is trig-
monies received from illegal enterprises become acutely aware of the Form 8300 gered, there is a 15-day window to file
are often used to purchase high-dollar reporting requirements. However, many the Form 8300, as well as a requirement
tangible goods, commodities, and real other businesses may, under certain cir- to provide a subsequent customer notice.
estate investment properties. However, cumstances, be subject to these reporting There is a small civil penalty for each re-
besides helping to track down money requirements. For example, if a landlord turn not filed and for a failure to furnish
laundering, the requirements imposed accepts cash payments for a lease of the customer notice; such penalties can
by these statutes also provide an avenue property, or if a contractor or retail busi- be reduced through corrective measures.
for identifying individuals and businesses ness accepts cash in a lump sum or in in- However, intentionally disregarding the
using cash income that has not been re- stallment payments for goods or services, filing requirement, or structuring trans-
ported for income tax. Tax owed on this a Form 8300 filing may be required. actions to avoid the filing requirements,
unreported cash income is potentially a CPAs should be cognizant of the can trigger penalties that are exponen-
significant piece of the “tax gap” — the general requirements for reporting large tially larger.
difference between the tax owed in a year cash transactions, even if they are not The discussion below reviews the
and the amount that is actually paid.1 typically the preparers or filers of the IRS’s Form 8300 reporting require-
Cash economy transactions are at Form 8300. Practitioners who are aware ments, focusing on practical examples of
high risk of not being reported, and that their clients accept (even infre- reporting situations, as well as situations
estimates are that the cash economy quently) cash payments from customers where reporting is not required. In addi-
comprises as much as 35% of the tax for goods or services should consider tion, the discussion reviews several court
gap.2 IRS Commissioner Charles Rettig alerting or reminding such clients of decisions that have examined the IRS’s
has made a point of highlighting the the reporting requirements. In addition, imposition of penalties for reporting
expansion of the tax gap in his effort practitioners should alert their clients failures and sets forth some recommen-
to seek funding for more enforcement who accept cryptocurrencies or other dations and guidelines for practitioners

1. IRS, “A Closer Look: Impacting the Tax Gap,” CL-21-13 (April 23, 2021). 5. IRS News Release IR-2020-168 (7/22/20), referring to FS-2020-11.
2. Committee on Ways and Means, U.S. House of Representatives, “Under- 6. IRS News Release IR-2021-47 (2/26/21), referring to FS-2021-3.
standing the Tax Gap and Taxpayer Noncompliance,” Testimony of the 7. Rettig, “Form 8300: Reporting Domestic Currency Transactions,” Journal
Honorable J. Russell George, Treasury Inspector General for Tax Adminis- of Tax Practice & Procedure [CCH], p. 29 (December 2012–January
tration (May 9, 2019). 2013).
3. IRS, “A Closer Look: Impacting the Tax Gap.” 8. Infrastructure Investment and Jobs Act (Infrastructure Act), P.L. 117-58.
4. IRS News Release IR-2019-20 (2/21/19), referring to FS-2019-1.

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