IRS FORM 8300 Report of Cash Payments Over $10,000 Received in Trade or Business Summary
IRS Requirement:
If MSU, in the course of our trade or business, receives more than $10,000 in cash (Note 1) in one transaction or in related transactions (Note 2) we are required to complete and file Form 8300.
When is it due:
Form 8300 must be filed by the 15th day after the date the cash was received.
Penalties:
Minimum penalty of $25,000 may be imposed if failure to file is due to an intentional or willful disregard of the cash reporting requirements.
Specifics for Colleges and University&s:
Per IRS cash donations are not included in the definition of a trade or business and are therefore exempt from Form 8300 reporting. However, cash received for tuition and other services (educational, etc.) would be reportable on Form 8300.
Procedure:
Form 8300 should be completed as part of processing the transaction. Provide a completed copy to the individual/payor. Completed original form should be sent to Office of Tax Services, 426 Auditorium Rd Room 301, to be processed. Please send original as quickly as possible to allow adequate time for processing by the due date (15th day after date cash was received).
Specific Form Instructions –
Part I – Department must collect the following information from the individual along with checking id from individual: Name, TIN (SSN), Address, DOB, and Occupation. Verify the name and address via individual’s identification (driver’s license, passport, alien registration card, or other official document). Provide description of id, who issued the id, and the number on the id.
Part II – Only complete if the transaction is conducted on someone else’s behalf (husband, wife, parent, child, etc.) Otherwise skip.
Part III – To be completed by department based on specific transaction information.
Part IV – Section has been provided on attached form. Department should complete the address information and sign the form that to the best of their knowledge the information is true.
Page 2, Part I & II continued – Only complete if Box 2 or 15 was checked on Page 1.
Note 1 – The IRS defines cash as –
- U.S. and foreign coin and currency or
- A cashier’s check, money order, bank draft, or traveler’s check having a face amount of $10,000 or less that is received in a designated transaction (i.e. a retail sales of tangible personal property that would be useful for 1 year or more, collectible, travel or entertainment activity).
Note 2 – The IRS considers transactions related if
- They occur within a 24-hour period of time or
- They occur over a 24-hour period of time and the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions (i.e. payment for a semester of tuition, purchase a car, etc.)