IRS News Release  
May 03, 1995

IRS Checking That Businesses
Comply with Cash Reporting Rules

WASHINGTON - The Internal Revenue Service will conduct a nationwide consolidated compliance effort this Spring that will include educating businesses and non-bank financial institutions, such as check cashing and currency exchanging businesses, of their responsibilities to report cash received in large sums.

When businesses comply with these rules it helps the IRS catch people who pay cash for big ticket items or services, such as cars, jewelry, or legal services, in order to cover up income.

This Spring, the IRS may visit motorcycle, auto and boat dealers, antique and art dealers, auction houses, jewelers, law firms, real estate and insurance agencies, and court clerks, among other businesses.

According to the IRS, businesses, as well as court clerks, that receive more than $10,000 in cash in a single transaction, or a series of related transactions within twelve months, must report it within 15 days on Form 8300, "Report of Cash Payments Over $10,000 Received in a Trade or Business."

Non-bank financial institutions, except some casinos, must file Form 4789 , "Currency Transaction Report" (CTR), for cash sums received exceeding $10,000, as do banks, savings and loans, and credit unions.

The term "cash," for Form 8300 reporting purposes, may include cashier's and traveler's checks, bank drafts and money orders, all with face values of $10,000 or less. Personal checks are not considered cash.

The IRS can assess civil and criminal penalties on a business that does not file the correct forms, files fraudulent forms, or does not supply all pertinent information on the forms.

The penalties can be as much as $500,000 and 10 years imprisonment.

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