Page 255 - TaxAdviser_2022

all such payments can be aggregated the form. Additionally, the filer must are $10,000 or less, the transactions can
and reported on the one filing.42 For verify the name and address of the be voluntarily reported on Form 8300.
installment payments, the first payment payer by examining documentation Examples include:
(assuming it does not exceed $10,000) that is normally accepted as means of ■ A person is trying to prevent a
and any later payments made within one identification when cashing checks business from filing a Form 8300;
year of the first payment must be added, (driver’s license, passport, alien ■ A person is trying to cause a business
and when the total cash payments registration card, or other official to file a false or incomplete Form
exceed $10,000, reporting is required document)45 and must record the 8300; or
within 15 days.43 Once a Form 8300 documentation on the form. ■ A person is potentially engaged in
is filed, a new count of cash payments Part II requires information if the illegal activity.49
begins, and when or if the subsequent transaction is being conducted on behalf Such transactions may be reported
cash payments exceed $10,000 within of more than one person, including the by checking the “suspicious transaction”
a one-year period, reporting is again name, address, and TIN of the person box (box 1b) on the top line of Form
required.44 for whom the transaction is being 8300. In addition, businesses can contact
conducted. Part III requires information the IRS Criminal Investigation Divi-
Example 8: A lessee rents equipment regarding the transaction, including sion Hotline or the local IRS Criminal
on Jan. 1 and pays a $2,100 cash the amount of cash received (and the Investigation unit.
deposit as well as the initial lease amount in $100 bills or higher), as well
payment of $2,100 cash on Jan. 1. as the amounts received in currency Payee statements
The lease is a 12-month lease with or financial instruments. Finally, Part When a business files a Form 8300,
payments due on the first day of IV requests information regarding the the business must additionally provide
each month. Assuming the lessee business that received the cash. an annual single written notice to
makes all payments in cash, total The Form 8300 can be filed by each person named in the Form
cash received under the lease will mail or filed electronically using 8300.50 The notice must include the
first exceed $10,000 on April 1, and FinCEN’s BSA (Bank Secrecy Act) following information:
thus a Form 8300 must be filed by E-Filing System. ■ The name, address, and telephone
the lessor within 15 days thereafter. number of the person filing the
The next series of cash lease pay- Record retention and statute return;
ments from May 1 through Sept. 1 of limitation ■ The total amount of reportable cash
will then require another Form 8300 Copies of Forms 8300 must be retained received by the business during the
filing by the lessor within 15 days of by the filer for five years from the date of calendar year in all cash transactions
the Sept. 1 payment. The remaining filing.46 The statute of limitation for the relating to the person being notified;
three payments on the lease (October Form 8300 is three years from the date and
through December) will not require of filing,47 with no statute of limitation ■ A statement that the information
a report. for returns that are never filed.48 contained in the notice is being
reported to the IRS.51
Form 8300 requires detailed Suspicious transactions The statement must be furnished to
information regarding the cash If the requisite cash transaction occurs, the person on or before Jan. 31 of the
transaction. Part I requires information a Form 8300 filing is mandatory. year following the year in which the
that discloses the identity of the cash However, under certain circumstances, cash is received.52 If there is only one
payer. The filer must request the a business can file a Form 8300 volun- Form 8300 filed during the year, a
payer’s taxpayer identification number tarily. If a business is suspicious about a copy of the Form 8300 furnished to
(TIN) and provide the number on transaction, including transactions that the person can suffice as a notice.53

42. Id. 48. Sec. 6501(c)(3).
43. Regs. Sec. 1.6050I-1(b)(2). 49. IRS Form 8300 Reference Guide.
44. Regs. Sec. 1.6050I-1(b)(3). 50. Regs. Sec. 1.6050I-1(f).
45. Form 8300 Instructions, p. 4. 51. Regs. Sec. 1.6050I-1(f)(2).
46. Regs. Sec. 1.6050I-1(e)(3)(iii). 52. Regs. Sec. 1.6050I-1(f)(3).
47. Sec. 6501(a). 53. Internal Revenue Manual (IRM) §4.26.10.7.2(4).

www.thetaxadviser.com May 2022 37