Cannabis Businesses Required to File IRS Form 8300 After Cash Transactions

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AAFCPAs would like to remind cannabis business clients of their potential Form 8300 Report of Cash Payments Over $10,000 Received in a Trade or Business reporting obligation. This filing is required for any business who receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.

The Form 8300 provides information to the IRS and the Financial Crimes Enforcement Network (FinCEN) to assist in efforts to combat money laundering.

Who Must File Form 8300?

A business that receives cash payments is required to file Form 8300, if all the following conditions apply:

  1. The amount of cash received by the business is more than $10,000
  2. The cash is received by the business as:
    • A lump sum payment of over $10,000, or
    • Installment payments received within one year from the initial payment totaling more than $10,000, or
    • Any previously unreported payments that cause the total cash received within a consecutive 12-month period to total more than $10,000
  3. The establishment receives the cash in the ordinary course of business
  4. The same agent/buyer/entity is providing the cash
  5. The business receives the cash in a single or related transaction

When to File?

If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurred.

Additional Record Keeping

The business is responsible for obtaining the Taxpayer Identification Number (TIN) from whom they receive the cash, and for furnishing a written statement to each person whose name is required to be included in the Form 8300 by January 31 of the year following the transaction. Civil and Criminal Penalties can become severe for failing to properly file Form 8300 and failing to keep proper documentation. If you have questions about your obligations to file Form 8300, please contact Stephen Lanza, CPA, MSA at 774.512.4171, slanza@nullaafcpa.com; David McManus, CPA, CGMA at 774.512.4014, dmcmanus@nullaafcpa.com; or your AAFCPAs Partner.


About the Authors

David McManus

David McManus, CPA, CGMA

Dave leads AAFCPAs’ national Cannabis Business Practice, and has been deeply immersed in understanding the complex financial and operational nuances of the industry since 2012. His subject matter expertise was sought by the U.S. Treasury and Senate Finance Committee for guidance on critical considerations regarding the 280E transition following DEA rescheduling news. As a key advisor through the AICPA, Dave and his cannabis team provides insights to shape regulatory guidance on this issue. He provides highly …
Lanza-Stephen

Stephen Lanza, CPA, MSA

Steve provides proactive tax and business advisory services to private, and often family-owned businesses in a variety of industries, including: construction, manufacturing & distribution, and retail. He specializes in providing federal and state tax planning and compliance for C Corps, S Corps, partnerships & their owners. As a leader in AAFCPAs’ Construction Practice, Steve serves general and specialty contractors, heavy construction contractors and homebuilders, and material and equipment suppliers. He helps clients retain more of the …