Understanding IRS Rules on Large Cash Payments

ARTICLE | September 30, 2025

Many businesses and individuals find themselves handling large sums of cash, whether they’re closing a big-ticket sale, receiving payments in lump sums for services, or managing unpredictable inflows of currency. However, once payments exceed a $10,000 threshold (in one or more related transactions), the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) expect diligent reporting. This is typically done through IRS Form 8300. Although the form itself may look straightforward, the rules surrounding who must file, what counts as cash, and the deadlines involved can be more detailed than first meets the eye. Adding a new wrinkle, as of January 1, 2024, any trade or business that is required to electronically file other information returns (such as Forms W-2 or 1099) must also e-file Form 8300. Ignoring these mandates or making mistakes in reporting can lead to hefty penalties—or even potential criminal charges in cases of intentional disregard of the law. Staying informed is the first step toward avoiding these pitfalls.

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