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Reporting Cash Payments to IRS

Receiving Cash Payments in Excess of $10,000 Requires Reporting to IRS

Under the provisions of the Tax Reform Act of 1984 and the Anti-Drug Abuse Act of 1988, real estate licensees who during a twelve month period receive more than $10,000 in cash from one buyer in connection with one real estate transaction or two or more related transactions must report it to the Internal Revenue Service on Form 8300. Regardless of whether the cash is received in a lump sum or in installments, it must be reported.

Cash is coins and currency and certified funds such as cashiers checks, bank drafts, travelers checks, and money orders in amounts less than $10,000. If the certified funds clearly are the proceeds from a bank loan, they do not have to be reported.

A transaction could be a sale or rental of property, a fee for services, an exchange of cash for other cash, a payment to a trust or escrow account, the repayment of a loan, or a conversion of cash to a negotiable instrument such as a check or a bond.

Form 8300 must be filed within 15 days of a licensee's receiving over $10,000 either in one lump sum or in installments that cause the cash received in twelve months to total more than $10,000. Form 8300 may also be filed if a person suspects the transaction is being used to launder money.

Copies of Form 8300 and of Publication 1544, which explains the requirements in detail, are available upon a call to the IRS at 1 800 829 3676, on the Worldwide Web at http://www.irs.gov/pub/irs-pdf/f8300.pdf , or for the hearing impaired with access to TDY equipment at 1 800 829 4059.

The information contained in this article is believed to be current and accurate. The GREC staff reviews the contents periodically and updates it when appropriate. If you have questions or comments about this article, you may contact us at grecmail@grec.state.ga.us . Last reviewed August, 2006.