How to Complete Form 8300 – Part II

Now, let's move on to Part 2 of the form. In situations where a transaction is being conducted on behalf of more than one person, including a married couple or a parent and child, or an employee for an employer, check box 15 and complete Part 2 for any one of the persons. Provide the same information for the other persons by completing Part 2 on page 2. If more than three persons are involved, provide the same information in the Comments section on page 2 of the form. Notice that, like item 13 in Part 1, item 22 of this section asks for occupation, profession, or business. And, like item 13, detail matters here. Be descriptive. Don't use general terms such as businessman, store, or self-employed. Let's move on to Part 3 of the form and look at a few items where filers often make mistakes and where, again, details matter. First, carefully review items 29 and 32. Item 29 asks for the total cash received. Item 32 asks for a breakdown of the types of cash received for the transaction. The types of cash are The sum of the types of cash must equal the total cash received in item 29. For example, a customer gives you You would show $11,500 in item 29 in the amounts for each type of cash in item 32. For more information about cash, find the definition of cash in the Form 8300 instructions. Now, look at item 34. It asks for a specific description of property or service for the type of transaction reported in item 33. Here, you want to include descriptions such as the vehicle identification numbers of automobiles, serial numbers of personal property, and personal or business services provided. As we near the end of this presentation, I want to stress again the importance of completing the entire form. When e-filing, you will note terms like critical field. While you must complete these fields to submit the form electronically, you must also complete all applicable fields. If you are unable to obtain information for a non-critical field, or the non-critical field doesn't apply to your situation, please leave blank. Do not enter words such as none, in a, unknown, etc. Instead, provide an explanation in the comments section of the form. Double-check your form for accuracy and completeness. You may be subject to penalties if you leave items blank and not have provided any explanation in the comments section. If you try to get information from your customer and they refuse to give it to you, leave blank and, in the comments section of the form, state that the customer refused and how you tried to obtain the information. For more information about penalties and reporting cash payments on Form 8300, check out Publication 1544. It's a great resource. Effective January 1, 2024, you must electronically file Forms 8300 if you're required to electronically file other information returns, such as Forms 1099-Series and Forms W-2. You must electronically file your Forms 8300 if you're required to file at least 10 information returns of one or more types other than Form 8300 during a calendar year. For example, if you're required to file 5 Forms W-2 and 5 Forms 1099-INT, then you're required to file certain other information returns during that year electronically, including any Forms 8300. However, if you file less than 10 information returns other than Forms 8300, you're not required to file the information returns electronically and not required to file any Forms 8300 electronically. The number of Forms 8300 you file does not affect the requirement. Keep in mind, if you're not required to e-file, you can still choose to do so. If you're not required to e-file Form 8300 and choose to physically mail it to the IRS, send it to Internal Revenue Service, Rosa Parks Federal Building, PO Box 32621, Detroit, Michigan, 48232. You may file a request for a waiver from filing information returns electronically due to undue hardship. For more information, refer to Form 8508, Application for a Waiver from Electronic Filing of Information Returns. If the IRS grants you a waiver from electronically filing information returns, the waiver automatically applies to all Forms 8300 for the rest of the calendar year. You must include the word WAIVER on the center top of each Form 8300, page 1, when submitting the paper-filed returns. If using the technology required to electronically file conflicts with your religious beliefs, you are automatically exempt from filing Form 8300 electronically. You must include the words RELIGIOUS EXEMPTION on the center top of each Form 8300, page 1, when submitting the paper-filed return. Note, if you are required to electronically file and file by paper without a waiver or religious exemption, you will be subject to a late penalty. Failure to file timely includes failure to file in the required manner. Remember, you must keep a copy of Form 8300 for five years. When e-filing and prior to finalizing the form submission, be sure to save a local copy of the form. Additionally, you may print a copy of the form. Confirmation received is not a substitute for retaining the filed form. Many taxpayers find that e-filing is a faster, more convenient, and cost-effective way to meet the reporting deadline. The IRS and FinCEN strongly encourage utilizing the e-filing systems. One of the many benefits is you get instant confirmation that the government received your form, and batch filing is an option, which is especially helpful if you file many forms. To get the benefits of e-filing, enroll and set up an account with the Financial Crimes Enforcement Network's Bank Secrecy Act or BSA e-filing system. It's free! To e-file, 1. Go to FinCEN.gov 2. Scroll to and click on e-filing 3. Click Login or New Filer Enrollment Or, for more information, visit FinCEN.gov forward slash contact Or, email them at bsaefilinghelp at FinCEN.gov The Help Desk is available Monday through Friday from 8 a.m. to 6 p.m. Eastern Standard Time. When e-filing, it's important to know that only completing fields designated as critical does not meet the filing requirements. Again, and as a final tip, complete the entire Form 8300.