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$10,000+ cash transaction reporting changes coming in 2024

October 4, 2023
Patrick and Huell Breaking Bad henchmen on pile of ill-gotten cash_AMC TV

Piles of illicit cash were a plot feature in the AMC show "Breaking Bad." Since meth-making kingpin Walter White couldn't bank it without raising suspicions, he kept his drug money under his floorboards and, finally, in a storage unit, where two underlings once used it to nap sans mattress.

Anyone who watches crime programs (guilty!) knows one piece of tax law.

Television, streaming, and movie crooks are always careful to avoid five-figure financial transactions. When these on-screen crooks deposit or withdraw more than $10,000 of their ill-gotten funds, the bank must report the large amounts to the Internal Revenue Service.

Of course, the fictional accounts of such large amounts only touch on the Internal Revenue Code provision in passing.

But it is a real law. And the Internal Revenue Service is making some changes so that it gets these $10,000+ reports more quickly.

Beginning next year, some of these reports detailed on IRS Form 8300 must be electronically filed.

Plus, the definition of cash for Form 8300 purposes will expand to include payments made with digital assets such as virtual currencies.

Crime-fighting assist from the IRS: Uncle Sam's tax collection agency notes that many cash transactions are legitimate. Others, though, not so up-and-up.

The information on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, can help law enforcement track and stop money laundering, tax evasion, drug dealing, terrorist financing, and other criminal activities.

IRS Form 8300 transactions of 10K or more

See more tax forms and more about them at Tax Forms 2023.

To ensure that the reporting is more useful in cracking these cases effective Jan. 1, 2024, recipients of the payments must electronically file Forms 8300 if they are required to e-file certain other information returns electronically, such as Forms 1099 series and Forms W-2.

Those recipients to whom the reporting rule applies include an individual, company, corporation, partnership, association, trust, or estate. Those whom the IRS says typically need to file Form 8300 include dealers in jewelry, furniture, boats, aircraft, or automobiles; pawnbrokers; attorneys; real estate brokers; insurance companies; and travel agencies.

Next year, these entities must e-file the 8300 forms in a given calendar year if they are required to file at least 10 other information returns of one or more types.

Form 8300 must be filed within 15 days once a business receives more than $10,000 in cash, including the payments made in the expanded definition.

Also, in addition to filing the required Form 8300, the reporting business must notify each person named in the forms about the information reported to the IRS.

The IRS warns that the reporting obligation cannot be avoided by separating a transaction into multiple transactions. Doing this will be considered related transactions. If the IRS determines that these slightly smaller, but connected, cash transactions are actually part of a scheme, usually called structuring, to avoid tax reporting, you'll find yourself in even more tax trouble.

Record keeping is key: As with all things tax, good and thorough records are imperative.

The IRS reminds businesses that they must keep a copy of every Form 8300 filed, along with any supporting documentation, and the required statement that is sent to customers, for five years from the date filed.

Business should keep in mind that filing electronically will provide a confirmation email that the form was filed, but e-file confirmation emails do not meet the record keeping requirement.

When e-filing, filers must save or print a copy or the form prior to finalizing the form

submission. Businesses should associate the confirmation number with the saved copy.

You can find more information on $10,000 transaction tax reporting at IRS.gov in the agency's Publication 1544, Reporting Cash Payments of Over $10,000; the Form 8300 Reference Guide; and the special web page Form 8300 and Reporting Cash Payments of Over $10,000.

You also might find these items of interest:

 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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