Did you know that businesses (including real estate companies) must notify the Internal Revenue Service when they receive more than $10,000 in cash in one or more related transactions?
To assist in reporting these transactions, the IRS has developed a form (Form 8300) which must be completed and filed with the IRS not later than 15 days after the transaction has occurred. A copy of the form must also be maintained by the business for five years.
In addition, a written statement must be provided to the person from whom the cash is received. This may be accomplished by giving him or her a copy of the Form 8300.
Persons who fail to report such transactions or to furnish the payer the required statement are subject to civil penalty and/or criminal prosecution.
Persons desiring further information about these new requirements should contact the nearest IRS office..