REPORTING CASH

Any business that receives more than $10,000 in cash in a single transaction or in at least two related transactions must promptly report these payments to the Internal Revenue Service.

People in the real estate business, coin dealers, attorneys, and retailers of such big-ticket items as cars, trucks, boats, jewelry, and furs are often affected by this reporting requirement. The business person must obtain the customer's social security number and verify his or her identity by checking a driver's license, passport, or similar document.

Form 8300 is used to report these payments and must ordinarily be sent to the IRS's Detroit Computing Center within 15 days after the transaction occurs. Information about cash-paying customers and clients reported on these forms is used by the IRS to investigate the money laundering activities of people involved in drug trafficking and other enterprises.

The IRS asks business people to also report suspicious cash transactions which may be below the $10,000 threshold. The use of multiple money orders or cashiers' checks often indicates a suspicious transaction.

Form 8300 and Publication 1544 for Reporting Cash Payments of Over $10,000 may be obtained free from the IRS by calling toll-free 1-800-TAX-FORM (829-3676).