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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
clerks of federal or state courts are discussed initial payment to total more than 1. A consumer durable, such as an automo-
later under Bail received by court clerks. $10,000, or bile or boat. A consumer durable is prop-
However, you do not have to file Form 8300 c. Other previously unreportable pay- erty, other than land or buildings, that:
if the transaction is not related to your trade or ments that cause the total cash re- a. Is suitable for personal use,
business. For example, if you own a jewelry ceived within a 12-month period to to-
store and sell your personal automobile for tal more than $10,000, b. Can reasonably be expected to last at
least 1 year under ordinary use,
more than $10,000 in cash, you would not sub- 3. Received in the course of your trade or
mit a Form 8300 for that transaction. business, c. Has a sales price of more than
$10,000, and
Transaction defined. A “transaction” occurs 4. Received from the same buyer (or agent),
when: and d. Can be seen or touched (tangible
property).
Goods, services, or property are sold; 5. Received in a single transaction or in rela-
Property is rented; ted transactions (defined later). For example, a $20,000 car is a con-
Cash is exchanged for other cash; sumer durable, but a $20,000 dump truck
or factory machine is not. The car is a con-
A contribution is made to a trust or escrow What Is Cash? sumer durable even if you sell it to a buyer
account; who will use it in a business.
A loan is made or repaid; or Cash is:
2. A collectible (for example, a work of art,
Cash is converted to a negotiable instru- 1. The coins and currency of the United rug, antique, metal, gem, stamp, or coin).
ment, such as a check or a bond. States (and any other country), and
Person defined. A “person” includes an indi- 2. A cashier's check, bank draft, traveler's 3. Travel or entertainment, if the total sales
vidual, a company, a corporation, a partnership, check, or money order you receive, if it price of all items sold for the same trip or
an association, a trust, or an estate. has a face amount of $10,000 or less and entertainment event in one transaction (or
Exempt organizations, including employee you receive it in: related transactions) is more than
$10,000.
plans, are also “persons.” However, exempt or- a. A designated reporting transaction
ganizations do not have to file Form 8300 for a (defined later), or To figure the total sales price of all items
more-than-$10,000 charitable cash contribution b. Any transaction in which you know the sold for a trip or entertainment event, you in-
they receive since it is not received in the payer is trying to avoid the reporting of clude the sales price of items such as airfare,
course of a trade or business. the transaction on Form 8300. hotel rooms, and admission tickets.
Foreign transactions. You do not have to file Cash may include a cashier's check Example. You are a travel agent. Ed John-
Form 8300 if the entire transaction (including ! even if it is called a “treasurer's check” son asks you to charter a passenger airplane to
the receipt of cash) takes place outside of: CAUTION or “bank check.” take a group to a sports event in another city.
The 50 states, He also asks you to book hotel rooms and ad-
The District of Columbia, Cash does not include a check drawn on an mission tickets for the group. In payment, he
Puerto Rico, or individual's personal account. gives you two money orders, each for $6,000.
A possession or territory of the United A cashier's check, bank draft, traveler's You have received more than $10,000 cash in
States. check, or money order with a face amount of this designated reporting transaction. You must
more than $10,000 is not treated as cash. file Form 8300.
However, you must file Form 8300 if any part of These items are not defined as cash and you
the transaction (including the receipt of cash) do not have to file Form 8300 when you receive Retail sale. The term “retail sale” means any
occurs in Puerto Rico or a possession or terri- them because, if they were bought with cur- sale made in the course of a trade or business
tory of the United States and you are subject to rency, the bank or other financial institution that that consists mainly of making sales to ultimate
the Internal Revenue Code. issued them must file a report on FinCEN Re- consumers.
port 112. Thus, if your business consists mainly of
Bail received by court clerks. Any clerk of a making sales to ultimate consumers, all sales
federal or state court who receives more than Example 1. You are a coin dealer. Bob you make in the course of that business are re-
$10,000 in cash as bail for an individual Green buys gold coins from you for $13,200. tail sales. This includes any sales of items that
charged with any of the following criminal offen- He pays for them with $6,200 in U.S. currency will be resold.
ses must file Form 8300: and a cashier's check having a face amount of
1. Any federal offense involving a controlled $7,000. The cashier's check is treated as cash. Broker or intermediary. A designated report-
substance, You have received more than $10,000 cash ing transaction includes the retail sale of items
and must file Form 8300 for this transaction. (1), (2), or (3) of the preceding list, even if the
2. Racketeering, funds are received by a broker or other interme-
3. Money laundering, and Example 2. You are a retail jeweler. Mary diary, rather than directly by the seller.
North buys an item of jewelry from you for
4. Any state offense substantially similar to $12,000. She pays for it with a personal check Exceptions to Definition of Cash
(1), (2), or (3) above. payable to you in the amount of $9,600 and
For more information about the rules that apply traveler's checks totaling $2,400. Because the A cashier's check, bank draft, traveler's check,
to court clerks, see Section 1.6050I-2 of the In- personal check is not treated as cash, you have or money order you received in a designated re-
come Tax Regulations. not received more than $10,000 cash in the porting transaction is not treated as cash if one
transaction. You do not have to file Form 8300. of the following exceptions applies.
What Payments Must Be Example 3. You are a boat dealer. Emily Exception for certain bank loans. A cash-
Reported? Jones buys a boat from you for $16,500. She ier's check, bank draft, traveler's check, or
pays for it with a cashier's check payable to you money order is not treated as cash if it is the
You must file Form 8300 to report cash paid to in the amount of $16,500. The cashier's check proceeds from a bank loan. As proof that it is
you if it is: is not treated as cash because its face amount from a bank loan, you may rely on a copy of the
is more than $10,000. You do not have to file loan document, a written statement or lien in-
1. Over $10,000, Form 8300 for this transaction. struction from the bank, or similar proof.
2. Received as:
a. One lump sum of over $10,000, Designated Reporting Transaction Example. You are a car dealer. Mandy
White buys a new car from you for $11,500.
b. Installment payments that cause the A designated reporting transaction is the retail She pays you with $2,000 of U.S. currency and
total cash received within 1 year of the sale of any of the following: a cashier's check for $9,500 payable to you and
Page 2 Publication 1544 (September 2014)
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