IRS Requires Business to Start E-filing Form 8300 in 2024

IRS requires business to start e-filing Form 8300 in 2024

By   Michael Cohn
August 30, 2023

The Internal Revenue Service is telling companies they will need to start electronically filing their forms reporting cash payments over $10,000, starting Jan. 1, 2024.

The IRS said Wednesday that businesses will need to e-file Form 8300, Report of Cash Payments Over $10,000, as opposed to a paper return in the new year. The new requirement comes after the IRS released final regulations in February amending the electronic filing rules for information returns such as the Form 8300.

However, in those same regulations, the IRS noted that some businesses may need to apply for a waiver from the new requirements. "If filed electronically, Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, are not filed electronically with the IRS; rather they are filed electronically through the Financial Crimes Enforcement Network's (FinCEN) BSA E-Filing System. The Treasury Department, FinCEN, and the IRS have determined that most Form 8300 filers who might have difficulty filing electronically and might therefore need a waiver, would likely not be required to file electronically in the first place because they would not meet the electronic-filing threshold in § 301.6011-2(c), even after that threshold is reduced to 10 returns."

Nevertheless, businesses that receive over $10,000 in cash have to report the transactions to the federal government. Most cash transactions are legitimate, the IRS acknowledged, but information reported on Forms 8300 can deter tax evasion, drug trafficking profits, terrorist financing and other criminal activities.

"The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete and accurate," said the IRS.

To file Forms 8300 electronically, businesses need to set up an account with the Financial Crimes Enforcement Network's BSA E-Filing System.

The new requirement for electronically filing the forms applies to businesses that have been mandated to e-file other kinds of information returns as well, including Forms 1099 and W-2. Starting in 2024, businesses will need to e-file all Forms 8300 and some other types of information returns required to be filed in a given calendar year if they're required to file at least 10 information returns other than Form 8300.

If a business files five Forms W-2 and five Forms 1099-INT, then the business needs to electronically file all their information returns that same year, including any Forms 8300. But if the business files less than 10 information returns of any type, other than Forms 8300, then that business doesn't have to e-file the information returns and isn't required to e-file the 8300. Even businesses that aren't required to file electronically can still opt to e-file.

Businesses that will have a hard time complying with the requirement can file a request for a waiver from e-filing information returns with Form 8508, Application for a Waiver from Electronic Filing of Information Returns. If the IRS gives them a waiver from e-filing any information return, the waiver automatically applies to all 8300 forms for the rest of the year. However, a business can't request a waiver from e-filing only the 8300. Businesses need to include the word "Waiver" on the center top of each Form 8300 (Page 1) when submitting a paper filed return.

If a business has to file under 10 information returns, aside from the 8300, during the year, they can file the 8300 on paper form without asking for a waiver. But if they file less than 10 information returns, they can still elect to e-file the 8300 if they prefer.

If using the e-file technology somehow conflicts with a business owner's religious beliefs, they are automatically exempt from filing Form 8300 electronically. But they should write the words "RELIGIOUS EXEMPTION" in the middle of the top of page 1 of each Form 8300 when filing the return on paper.

Businesses are also required to self-identify late returns, either electronically or on paper. If they're filing a late Form 8300 electronically, they have to include the word "LATE" in the comments section of the return. For a paper return, they write the word "LATE" at the center of the top of page 1 of each 8300 form.

For more information, visit FS-2023-19 on IRS.gov.