How to Complete Form 8300 Part One Submitting a complete and correct Form 8300, - The Report of Cash Payments Over $10,000 Received in a Trade or Business is important.

It relieves you of the burden of handling a rejected form sent back to you to redo and resubmit.

It also helps you avoid penalties.

And the information you report is important to help combat illegal activities.

The government can often trace money from these illegal activities through the payments reported on this and other cash reporting forms, such as a Currency Transaction Report.

Although many cash transactions are legitimate, did you know that information reported can help stop those who evade taxes, profit from the drug trade, and engage in terrorist financing?

So, always complete the entire form.

Now, let’s get started with key points on how to complete this important form beginning at the top.

Look at item 1b, suspicious transaction.

If the transaction with your customer appears legitimate, you can skip this item.

But, if it appears someone bringing cash to you is attempting to cause you to file an incomplete form, a false form, or to not file a form at all, this is suspicious.

You report this transaction by checking box 1b.

And you describe what was suspicious about the transaction in the comments section of the form.

For transactions under the reporting threshold, you can file Form 8300, if the transaction appears suspicious.

It is voluntary but highly encouraged.

Forms marked suspicious are handled confidentially.

Let’s move to part ONE of the form.

To complete the form correctly, you must include everyone who is involved in a transaction.

Part ONE is where you give information about those individuals.

If more than one person conducted the transaction, you check the box for item 2.

You would complete part ONE on page 1 for any one of the individuals.

Then, provide the same information for the other individuals by completing part ONE on page 2 of the form.

If more than three individuals are involved, provide the same information in the comments section on page 2 of the form.

For example, if an automobile dealership sells a car to a customer and receives cash payments from the customer, their mother, and their father, the dealership would: • Check the box for item 2, • Include information for one of the individuals in part ONE on page 1 and • Include information for two of the other individuals in part ONE on page 2.

While we are in part ONE of the form, it is important to point out that details matter.

As mentioned earlier, Form 8300 is a useful report, especially to those who work to combat illegal activities.

Remember, you must complete the entire form.

Look at item 13.

It asks for occupation, profession, or business.

Here you want to fully describe the nature of the occupation, profession or business.

For example, use “plumber,” “attorney” or “automobile dealer.” Do not use general or non-descriptive terms such as “businessman” or “self-employed.” If the individual is retired or unemployed, describe the individual’s previous occupation, such as “retired attorney” or “unemployed roofer.”