The IRS issued a news release (IR-2023-157)[1] reminding most businesses that, starting January 1, 2024, they will be required to file Form 8300, “Reporting Cash Payments Over $10,000,” electronically with the Financial Crimes Enforcement Network (FinCEN). This requirement comes as final regulations[2] mandating the electronic filing of most information returns take effect.

Electronic Filing of Information Returns

An IRS News Release (IR-2023-31),[3] which accompanied the publication of the final regulations on the electronic filing of information returns, provides the following details about the changes introduced by these regulations. These changes affect all information returns, including Forms 1099, W-2s, and K-1s, among others and reach out to cover corporate and partnership tax returns as well.

T.D. 9972 affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns. The final regulations reflect changes made by the Taxpayer First Act (TFA) to increase e-filing without undue hardship on taxpayers.

Specifically, the final regulations:

• reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed;

• require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations;

• eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and

• require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.[4]

• Note that, due to the aggregation requirements introduced by these regulations, most operating businesses—except for the very smallest—will now be required to file most federal tax returns electronically.

Form 8300 and Required Filing with FinCEN

The IRS opted to issue a special news release specifically addressing Form 8300, as this form will be electronically filed with FinCEN rather than directly with the IRS. Form 8300 is generally required when a business receives a single payment or a series of related payments totaling $10,000 or more in cash or certain cash-equivalent assets. The release states:

Businesses that receive more than $10,000 in cash must report transactions to the U.S. government. Although many cash transactions are legitimate, information reported on Forms 8300 can help combat those who evade taxes, profit from the drug trade, engage in terrorist financing or conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete and accurate.[5]

The aggregation rule also applies to the filing of this form. Therefore, even if a business receives its first and only cash payment exceeding $10,000 in 2024, and it files 10 other information returns, this single Form 8300 will also need to be filed electronically with FinCEN.

The new requirement for e-filing Forms 8300 applies to businesses mandated to e-file certain other information returns, such as Forms 1099 series and Forms W-2. Electronic filing and communication options will be simpler and will make it easier to interact with the IRS. Beginning with calendar year 2024, businesses must e-file all Forms 8300 (and other certain types of information returns required to be filed in a given calendar year) if they’re required to file at least 10 information returns other than Form 8300.

For example, if a business files five Forms W-2 and five Forms 1099-INT, then the business must e-file all their information returns during the year, including any Forms 8300. However, if the business files fewer than 10 information returns of any type, other than Forms 8300, then that business does not have to e-file the information returns and is not required to e-file any Forms 8300. However, businesses not required to e-file may still choose to do so.[6]

How This Form is Filed Electronically

The news release outlines the process for electronically filing this form, unsurprisingly starting by highlighting the advantages of electronic tax form submission.

Many businesses have already found the free and secure e-filing system to be a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. They get free email acknowledgment of receipt of the form when they e-file. Businesses can batch e-file their reports, which is especially helpful to those required to file many forms.[7]

The news release notes that taxpayers required to file this form electronically will need to establish an account with FinCEN’s BSA E-Filing System.

To file Forms 8300 electronically, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System. The IRS will ensure the privacy and security of all taxpayer data.

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. For more information about the BSA E-Filing System, businesses can complete a technical support request at Self Service Help Ticket.[8] The help desk is available Monday through Friday from 8 a.m. to 6 p.m. EST.[9]

The release concludes by outlining where businesses can seek additional information regarding this filing:

For more information about the reporting requirement, see E-file Form 8300: Reporting of large cash transactions[10] on IRS.gov.

To help businesses prepare and file reports, the IRS created a video - How to Complete Form 8300 – Part I,[11] Part II.[12] The short video points out sections of Form 8300 for which the IRS commonly finds mistakes and explains how to accurately complete those sections.[13]

[1] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023, https://www.irs.gov/newsroom/businesses-must-electronically-file-form-8300-report-of-cash-payments-over-10000-beginning-january-1-2024 (retrieved September 1, 2023)

[2] Electronic-Filing Requirements for Specified Returns and Other Documents, TD 9972, February 23, 2023, https://www.govinfo.gov/content/pkg/FR-2023-02-23/pdf/2023-03710.pdf (retrieved September 1, 2023)

[3] “IRS and Treasury issue final regulations on e-file for businesses,” IR-2023-31, February 21, 2023, https://www.irs.gov/newsroom/irs-and-treasury-issue-final-regulations-on-e-file-for-businesses (retrieved September 1, 2023)

[4] “IRS and Treasury issue final regulations on e-file for businesses,” IR-2023-31, February 21, 2023

[5] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023

[6] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023

[7] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023

[8] https://bsaefiling1.fincen.treas.gov/HelpTicketForm

[9] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023

[10] https://www.irs.gov/newsroom/e-file-form-8300-reporting-of-large-cash-transactions

[11] https://www.irsvideos.gov/Business/BankSecrecyAct/HowToCompleteForm8300-partI

[12] https://www.irsvideos.gov/Business/BankSecrecyAct/HowToCompleteForm8300-partII

[13] “Businesses must electronically file Form 8300, Report of Cash Payments Over $10,000, beginning January 1, 2024,” IR-2023-157, August 30, 2023