NOTE: This headliner is current through the publication date. Since changes may have occurred, no guarantees are made concerning the technical accuracy after the publication date.
Headliner Volume 257
January 29, 2009
The Form 8300, Report of Cash Payment Over $10,000 Received in a Trade or Business, is an important tool in the government’s fight against money laundering and other financial crimes. Therefore, it is important filers get correct information about the form. Below is clarification on two issues concerning the Form 8300 that have generated numerous questions.
Form 8300 Filing Notification Statement to Payee
The IRS has received inquiries as to whether filers can provide a copy of Form 8300 to the payee(s) to satisfy the requirement to notify payees that Form 8300 for the cash transaction was filed.
IRC §6050I(e) and the corresponding regulation require that any person required to file a Form 8300 must provide a single, annual, written statement to the person who made the reportable payment(s), the noticee. The statement must contain the name, address, and contact telephone number of the Form 8300 filer, the aggregate amount of reportable cash received from the noticee during the calendar year, and a legend informing the noticee that the payment(s) are being reported to the IRS.
A copy of a filed Form 8300 can satisfy these elements since: it has lines for the filer's name and address, a contact name and phone number, the total amount of cash received, and the obvious purpose of the form is to report the transactions to the Service. Therefore, the filer of Form 8300 may use a copy of the filed form as the required notification if the transactions reported on the form include all of the transactions (required to be reported) for the noticee for the calendar year.
If, during the calendar year, the filer has transactions with the noticee which were included on more than one Form 8300, furnishing copies of multiple Forms 8300 to the noticee does not meet the notice requirement since it is not a "single" statement. In this situation, the Form 8300 filer should provide a single written notice aggregating all of the transactions. It is permissible to attach multiple Forms 8300 to the single notice.
Form 8300 filers should know that while the practice of using a copy of the Form 8300 as a notice may be convenient, it may not be advisable. Form 8300 contains sensitive information such as the Employer Identification Number (EIN) or Social Security Number (SSN) of the filer. If the filer provides this information to others outside the control of the filer, the disclosure could lead to problems such as identity theft.
Mobile Homes Are Personal Property for Purposes of Filing Form 8300
The second Form 8300 issue concerns the classification of a mobile home as personal or real property for purposes of filing Form 8300.
IRC §6050I(a) provides that any person engaged in a trade or business who, in the course of that trade or business, receives more than $10,000 in cash in one transaction or two or more related transactions, must file Form 8300.
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“Cash” includes a cashier’s check, bank draft, traveler’s check, or money order in an amount of $10,000 or less that is received in a “designated reporting transaction.”
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A “designated reporting transaction” is a “retail sale” of “a consumer durable.”
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A “retail sale” is any sale made in the course of a trade or business that primarily makes sales to ultimate consumers.
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A “consumer durable” is “an item of personal property . . . suitable under ordinary usage for personal consumption or use, that can reasonably be expected to be useful for at least 1 year under ordinary usage, and that has a sale price of more than $10,000.” Treas. Reg. Sec.1.6050I-1(c)(2)(5).
A mobile home, at the point of retail sale, is personal property, and qualifies as personal property and a consumer durable for determining any required Form 8300 reporting, regardless of how the purchaser intends to use or ultimately uses the mobile home.
Additionally, the IRS mailbox at 8300QUESTIONS@IRS.GOV accepts questions about the Form 8300.
References/Related Topics
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