Many small business owners are totally unaware that they are breaking the law when they take cash payments over $10,000. What they don’t know could cost them huge fines from the IRS. This form can be filed online or on paper. Additionally, the business must notify the individual from whom they admitted that the payment no later than January 31 of the year after the filing.
The penalties for not filing can be enormous. The intentional disregard penalty for failure to report is the greater of $25,000 or the quantity of money received in such transaction not to exceed $100,000. Failure to submit a timely return can run $50 to $100 each transaction. The aggregate yearly limitation (ceiling) in the case of businesses with gross receipts exceeding $5 million is $1,500,000. For businesses with gross receipts not exceeding $5 million, the aggregate annual limitation is $500,000.
Breaking a transaction into two payments does not allow you to prevent filing. The IRS counts greater than one payment related to one transaction as still being subject to the $10,000 limitation. For example, if a business sold a tractor and obtained a $7,000 cash deposit on the order, 소액결제 현금화 방법 delivered the Highway some time later and received the $5,000 balance as cash, which could be counted as a $12,000 transaction and requires the filing of a form 8300. It is not required to report transactions using cashiers checks or money orders, but any form of money or money is subject to the limitations.
When a business sells a client an item for $9,000 money one month and a month later the same customer purchases a totally different item for money, that’s considered two distinct transactions rather than subject to filing. But if the two sales happened inside a 24 hour period they’d be subject to the limitation. In case a business leases a room to someone who pays $2,000 per month rent in money and the entire cash rent paid during a calendar year exceeds $10,000, then that’s subject to this limitation since it’s all related to one transaction.
It becomes fairly tricky sometimes to ascertain when the limit was exceeded. When in doubt consult your accountant or the IRS website for further definition, or you can call the IRS for advice. Form 8300 is available online or where you purchase IRS forms. In addition, it can be filed electronically on line. Take care to always report these transactions within 15 days.Business