- The government is looking for bad guys who might be using you to launder money. You may have to report your windfall to the IRS.
- Your bank may hit you with extra fees for handling your pile of cash
Action Steps
The best contacts and resources to help you get it done
Report it to the IRS
If you accept more than $10,000 in cash from one buyer, paid once or in installments over a 12-month period, you most likely will have to send in IRS Form 8300 within 15 days. You'll also have to ask the buyer for a Social Security or tax ID number to fill out the form.I recommend: Read the IRS regulations carefully because there are plenty of qualifiers.In some cases, traveler's checks and money orders count as "cash" but in some cases, not. The rules cover "consumer durables" so a car purchase counts but a dump truck purchase doesn't. Download Form 8300 from the IRS.
Avoid scams
Money launderers may try to talk you out of filing Form 8300. Don't listen.I recommend: Read a warning note to car dealers about an "exemption certificate" scam. And remember that your bank is going to file another form to the IRS reporting your large cash deposit so you are being watched.
Negotiate fees with your bank
If you're going to accept large cash payments regularly, ask your bank about fees and services for handling bills and coinsI recommend: Use this menu of deposit services from Regions bank as an example.
Tips & Tactics
Helpful advice for making the most of this Guide
- You may voluntarily file a form 8300 for amounts less than $10,000 if you suspectthat your customer may be trying to launder money.
- Keep careful records of accepting any large payments in cash, even those that are under $10,000. Keep the customer's name, address, and Social Security number on file or in a database.
SaaS Accounting Software with 6459+ Global Clients. Free Product Tour!
www.NetSuite.com/Accounting
Flexible Accounting Solution on One Platform for Your Midsized Business. Register to get the Demo on a Flash Drive.
Get Flash Drive
www.ibm.com/smartmarket
We are live! Daily AP/AR and Banking. Monthly financial report package and policies and procedures developed to streamline your accounting department.
Become a Fan | Company Info | Calculate Costs | Contact Us
www.OSIBusinessServices.com
CPE courses are available for CPAs and financial professionals. We offer interactive, affordable, self-study online courses, exams & certificates.
Enrolled Agents | CFP Courses | Ethics Courses | Texas CPE
www.passonline.com/NASBA_QAS CPE_SelfStudy




Free B2B search marketing whitepaper, B2B Search Marketing Strategy Guide: Advice From the Pros.