What monetary threshold requires reporting cash transactions to the IRS using Form 8300?

The requirement to report cash transactions to the Internal Revenue Service (IRS) using Form 8300 is triggered when a business receives more than $10,000 in cash in a single transaction or in related transactions. This threshold is established under the Bank Secrecy Act and is intended to help combat money laundering and other financial crimes by tracking significant cash transactions.

When a business engages in a cash transaction that meets or exceeds this amount, it must file Form 8300 with the IRS within 15 days after the transaction date. This form collects information about the payer, including their name, address, and Social Security number or taxpayer identification number, along with details about the transaction itself.

The reporting threshold of $10,000 ensures that businesses remain vigilant and compliant with federal regulations regarding substantial cash transactions, which are often associated with illegal activities. By understanding this threshold and the reporting requirement, businesses can effectively manage their cash transactions and maintain compliance with IRS rules.