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Cannabis Businesses Required to File IRS Form 8300 After Cash Transactions

AAFCPAs would like to remind cannabis business clients of their potential Form 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business reporting obligation. This filing is required for any business who receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

The Form 8300 provides information to the IRS and the Financial Crimes Enforcement Network (FinCEN) to assist in efforts to combat money laundering.

Who Must File Form 8300?

A business that receives cash payments is required to file Form 8300, if all the following conditions apply:

  1. The amount of cash received by the business is more than $10,000
  2. The cash is received by the business as:
    • A lump sum payment of over $10,000, or
    • Installment payments received within one year from the initial payment totaling more than $10,000, or
    • Any previously unreported payments that cause the total cash received within a consecutive 12-month period to total more than $10,000
  3. The establishment receives the cash in the ordinary course of business
  4. The same agent/buyer/entity is providing the cash
  5. The business receives the cash in a single or related transaction

When to File?

If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurred.

Additional Record Keeping

The business is responsible for obtaining the Taxpayer Identification Number (TIN) from whom they receive the cash, and for furnishing a written statement to each person whose name is required to be included in the Form 8300 by January 31 of the year following the transaction. Civil and Criminal Penalties can become severe for failing to properly file Form 8300 and failing to keep proper documentation. If you have questions about your obligations to file Form 8300, please contact Stephen Lanza, CPA, MSA at 774.512.4171, slanza@nullaafcpa.comDavid McManus, CPA, CGMA at 774.512.4014, dmcmanus@nullaafcpa.com; or your AAFCPAs Partner.

About the Authors

David McManus CPA
Dave leads AAFCPAs’ Commercial Tax Practice providing highly coveted tax, entity structure, and business advisory solutions.  He has over three decades of proven experience advising manufacturers & distributors, real estate developers, high tech, bio tech, and renewable energy businesses.
Lanza-Stephen
Steve provides proactive tax and business advisory services to private, closely-held businesses in a variety of industries, including: construction, manufacturing & distribution, and retail. He specializes in providing federal and state tax planning & compliance for C Corps, S Corps, partnerships & their owners. He advises clients on year-end and multi-year tax planning, including: guidance related to changing tax code; monitoring and forecasting of income and operations in order to avoid year-end surprises; historical and current year activity to ensure accuracy and completeness of federal and state filings; opportunities to maximize federal and state tax credits; and minimizing the impact of the Alternative Minimum Tax (AMT).