Broker Check

Reporting Cash Payment

        March 28, 1990

          The battle against drugs and the Drug Cartels is being waged on many fronts, but the one of most interest is the one in your office.  In an attempt to track laundering of cash the Treasury Department has had the Internal Revenue Service try to account for all cash payments over $10,000 received by a trade or business.  In order to accomplish this the Internal Revenue Service has issued Form 8300.


          Each person engaged in a trade or business, who in the course of such trade or business (lawyer, auto dealer, etc.) receives more than $10,000 in cash in one transaction or two or more related transactions must file this Form.  You will need to obtain from the payor, in addition to his name and address, his Federal Employer Identification Number, and if an alien their passport number or alien registration number and indicate the country.


          This Form 8300 must be filed by the 15th day after the date of the transaction with the Internal Revenue Service Detroit Computing Center.  You must retain your copy of the form for 5 years.  A written statement must be provided to each person named in the Form by January 31 of the year following the calendar year in which this report is made.  This Form 8300 may be substituted for the written statement.


          Civil and criminal penalties of up to 5 years imprisonment are provided for failure to file the report, or to supply information, or for filing a false report.

          For further details we have enclosed a Form 8300 together with its General instructions.  If you have any questions regarding this form or any other matter please call me.