The Internal Revenue Service reminds businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000 and encourages e-filing to help them file accurate, complete forms.
Although many cash transactions are legitimate, information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on complete, accurate forms, according to an IRS news release.
To help businesses prepare and file reports, the IRS created a video on How to Complete Form 8300 – Part I, Part II. The short video points out sections of Form 8300 for which the IRS commonly finds mistakes and explains how to accurately complete those sections.
Also, the IRS encourages businesses to electronically file completed forms. Although they have the option of filing Form 8300 on paper, electronic filing is more accurate and reduces the need for follow-up correspondence with the IRS.
Many businesses have already found the free and secure e-filing system is a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. They get free, automatic acknowledgment of receipt when they file. And, businesses can batch file their reports, which is especially helpful to those required to file many forms, the news release added.
To file Form 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. For more information, interested businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at BSAEFilingHelp@fincen.gov. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. Eastern time.
For more information about the reporting requirement, see FS-2021-3 available on IRS.gov.
Check Eligibility for Tax Credits
With changes to income and other life events for many in 2020, tax credits and deductions can mean more money in a taxpayer’s pocket, and thinking about eligibility before filing can help make tax filing easier.
Certain credits may lead to a refund even if a person owes no tax. Some people may find that they’re newly eligible for certain tax credits, such as the Earned Income Tax Credit (EITC) or the Recovery Rebate Credit.
Now more than ever, the IRS urges people to check and see if they qualify for credits and to claim them when they file. People can use the IRS Interactive Tax Assistant to help determine if they’re eligible to claim certain credits and deductions. Individuals must file a federal income tax return — even if they aren’t otherwise required to file — and specifically claim certain credits, according to an IRS news release.