IRS Imposes E-Filing Requirements for Form 8300

Businesses that receive more than $10,000 in cash must report transactions to the U.S. government. The IRS says this rule helps the government fight tax evaders, drug dealers, terrorists and other criminals. "The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete and accurate," says the IRS.

And now the IRS is taking a new step by requiring e-filing for Form 8300, if businesses are already 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," says the IRS. In brief, 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.

How does it work?

The IRS gives an 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.

Know the exceptions

A business may file a request for a waiver from electronically filing information returns due to undue hardship. For more information businesses can refer to Form 8508, Application for a Waiver from Electronic Filing of Information Returns. If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Forms 8300 for the duration of the calendar year. A business may not request a waiver from filing only Forms 8300 electronically.

If a business is required to file fewer than 10 information returns, other than Forms 8300, during the calendar year, the business may file Forms 8300 in paper form without requesting a waiver. However, even if a business files less than 10 information returns, it can still choose to e-file the Forms 8300 electronically.

There's also a religious exemption: If using the technology required to e-file conflicts with a filer's religious beliefs, they are automatically exempt from filing Form 8300 electronically.

Questions?

Is electronic filing mandated for you? And if not, is it still advisable? Contact us to make sure your filing fulfills legal requirements and is as efficient as possible.