Does your business frequently receive large amounts of cash or cash equivalents? If you accept more than $10,000 in a single or related transactions, the IRS generally requires you to report these payments by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. This requirement helps the government trace funds related to criminal and tax evasion activities.
“Nanny Tax” Applies to Nannies and Other Household Employees
If you employ a household worker who isn’t an independent contractor, you may be required to pay employment taxes on the worker’s cash wages. This is commonly referred to as the “nanny tax.”
Handling Large Cash Transactions
Large Cash Transaction Reporting A reminder for businesses: Within 15 days of a $10,000 transaction, you must use IRS Form 8300 to report the transactions. If you file electronically, forms are delivered to the Financial Crimes Enforcement Network. Paper forms are submitted …