4.26.10. Form 8300 History and Law

(1) This subsection provides information on the statutory history of Form 8300 and describes its major provisions.

(1) Congress enacted IRC 6050I, Returns relating to cash received in trade or business, etc., to require that information returns relating to cash payments over $10,000 received in trade or business (Form 8300) are filed by all trades or businesses that are not required to file similar reports on currency transactions under the Bank Secrecy Act (BSA) (Title 31).

(2) Subsequently, nearly the entire language of IRC 6050I was enacted as 31 USC 5331, Reports relating to coins and currency received in nonfinancial trade or business. Form 8300 fulfills the requirements under two different titles of the U.S. Code, requiring reporting to FinCEN.

(3) IRC 6721, Failure to file correct information returns, provides a penalty for failure to file correct or timely information returns.

(4) IRC 6722, Failure to furnish correct payee statements, provides a penalty for failure to furnish correct or timely payee statements.

(5) IRC 6724, Waiver; definitions and special rules, provides reasonable cause waiver, definitions of information returns, and special rules.

(6) The term information return means any statement, form, or return as described in IRC 6724(d), Waiver; definitions and special rules, or 26 CFR 301.6721-1(g), Definitions, and 26 CFR 301.6722-1(d), Definitions.

(7) IRS’s authority to conduct the Form 8300 (Title 26) examination is found in IRC 7601, Canvass of districts for taxable persons and objects, which authorizes the Secretary to inquire into taxpayers’ tax liability, and IRC 7602, Examination of books and witnesses, which authorizes the Secretary to examine books and witnesses for specific purposes including determining and collecting federal tax liabilities.

(8) Authority to conduct the Form 8300 examination under Title 31 is found in 31 USC 310(2)(b)(2)(I).

(1) Director, Examination – Specialty Policy is the executive responsible for BSA Examination policy and procedures.

(2) Director, Examination – Specialty Examination is the executive responsible for BSA examination operational compliance.

(3) Chief, BSA Policy is responsible for ensuring general information about basic BSA examiner responsibilities and IRM sections is communicated to and carried out by BSA examiners.

(1) The following table contains acronyms, and their definitions, used throughout this IRM.

(1) The following table contains terms, and their definitions, used throughout this IRM.

(1) The following is a list of resources related to the information found in this IRM.

(1) The term "person" is not defined the same way under Titles 26 and 31, but the regulations explicitly bring them into conformity using the definition of person at IRC 7701(a)(1), Person. See 26 CFR 1.6050I-1(a)(1)(i), In General, and 26 CFR 1010.330(a)(1)(i) , In General.

(2) IRC 7701(a)(1), Person, defines "person" to mean and include an individual, trust, estate, partnership, association, company, or corporation.

(3) "Person", as defined in 31 USC 5312(a)(5), Person, includes an individual, corporation, company, association, firm, partnership, society, joint stock company, trustee, a representative of an estate, and, when the Secretary prescribes, a governmental entity.

(4) 31 CFR 1010.330(a)(1) , Reportable transactions, states that solely for purposes of section 5331 of title 31, United States Code and this section, "person" shall have the same meaning as under 26 USC 7701(a)(1).

(5) The end result is that "person" is defined exactly the same for purposes of the Form 8300 under IRC 6050I, Returns relating to cash received in trade or business, etc., and 31 USC 5331, Reports relating to coins and currency received in nonfinancial trade or business.

(6) The prohibition against structuring and similar actions to evade reporting requirements, which appears in IRC 6050I (f), Structuring Transactions to Evade Reporting Requirements Prohibited, was included in 31 USC 5324(b), Domestic Coin and Currency Transactions Involving Nonfinancial Trades or Business, not 31 USC 5331. Therefore, the definition of "person" for purposes of applying the prohibition against these actions is not determined by IRC 7701 . In Title 31 examinations involving this situation, the definition of person in 31 USC 5312(a)(5), Person, applies.

(1) The requirements of both IRC 6050I , Returns relating to cash received in trade or business, etc., and 31 USC 5331, Reports relating to coins and currency received in nonfinancial trade or business, apply to cash received by any person in a trade or business, with trade or business having the same meaning as under IRC 162 , Trade or business expenses. Note that criminal court clerks are specifically included by IRC 6050I (g), Cash Received by Criminal Court Clerks, if the examination is conducted under Title 26, and by 31 USC 5331(a)(2) if the examination is conducted under Title 31.

(2) Trade or business transactions include:

• Any transaction by a corporation received in connection with a trade or business;

• Non-gaming businesses activity of a casino, such as shops, restaurants, and hotels, are considered separate trades or businesses;

• Payments received by accountants, attorneys, doctors, and other service providers for services rendered or reimbursement of expenses, including cash received to be held in trust;

• Payments received by a collection agency for any one account;

• Sales of assets used in a trade or business; and,

• Transactions in which a person acts on behalf of another. (But an agent who receives cash from a principal and uses it within 15 days in a second cash transaction is not required to report initial receipt of the cash if the agent discloses the name, address, and TIN of the principal to the recipient of the second reportable cash transaction. The recipient in the second transaction is required to report the receipt of cash on Form 8300 , Report of Cash Payments Over $10,000 Received in a Trade or Business.

(3) To avoid duplicate reporting, 26 CFR 1.6050I-1(d)(1), Receipt of cash by certain financial institutions, provides an exception to the reporting requirements of IRC 6050I for cash received by most financial institutions having a requirement under the BSA (Title 31) to file Currency Transaction Reports (CTRs). In addition, IRC 6050I(d)(2), Receipt of cash by certain casinos having gross annual gaming revenue in excess of $1,000,000, clarifies casinos with gross annual gaming revenue over $1 million must file CTRs under the BSA and, therefore, need not file Form 8300 . Those casinos exempted from the CTR filing requirement because their gross annual gaming revenue is below the threshold must file Form 8300. In any case, cash greater than $10,000 received in a non-gaming business of a casino is reportable on Form 8300.

(1) IRC 6050I, Returns relating to cash received in trade or business, etc., requires reporting cash receipts while 31 USC 5331, Reports relating to coins and currency received in nonfinancial trade or business, requires reporting receipts of coins or currency.

(2) IRC 6050I(d) , Cash includes foreign currency and certain monetary instruments, defines "cash" to include foreign currency and, to the extent provided in regulations, any monetary instrument with a face amount of not more than $10,000 except a check drawn on the account of the writer in a financial institution.

(3) "Cash" is defined in the regulation, 26 CFR 1.6050I-1(c)(1) , Cash, to include:

• Coin and currency of the United States, or any other country, which circulates and is accepted as money in the country in which it is issued

• If received after February 3, 1992, a cashier’s check, bank draft, traveler’s check, or money order having a face amount of not more than $10,000 that is (1) received in a designated reporting transaction, or (2) received in any transaction in which the recipient knows that the instrument is being used in an attempt to avoid the reporting of the transaction under IRC 6050I.

(4) Under Title 31 "currency" is defined to include foreign currency and to the extent provided in regulations prescribed by the Secretary, any monetary instrument (whether or not in bearer form) with a face amount of not more than $10,000, except a check drawn on the account of the writer in most financial institutions.

(5) The regulatory definition of currency at 31 CFR 1010.330(c)(1), Currency, parallels the definition of cash under 26 CFR 1.6050I-1(c)(1), Currency. It includes the cash equivalent rules discussed below.

(1) Regulations under both titles are the same regarding the cash equivalent rules. See 26 CFR 1.6050I-1(c)(1)(ii), Amounts received on or after February 3, 1992, and 31 CFR 1010.330(c)(1) , Cash. Both Title 31 and Title 26 regulations contain the same references to Title 26. Both contain examples of the application of the following rules.

(2) A monetary instrument, including a cashier’s check, bank draft, traveler’s check, or money order having a face amount of $10,000 or less may be considered cash if received in a "Designated Reporting Transaction", which is a retail sale of a consumer durable, collectible, or a travel or entertainment activity, or if received in any transaction in which the recipient knows that such instrument is being used in an attempt to avoid reporting the transaction.

• Retail Sale - Any sale made during a trade or business, if that trade or business principally consists of making sales to ultimate consumers.

• Consumer Durable - An item of tangible personal property of a type suitable under ordinary usage for personal consumption or use, has a sales price of more than $10,000 and can reasonably be expected to be useful for at least one year under ordinary usage.

• Collectible - An item described in paragraphs (A) through (D) of IRC 408(m)(2), Collectible Defined, which includes any work of art, rug or antique, metal, gem, stamp or coin.

• Travel or Entertainment - An item of travel or entertainment (within the meaning of 26 CFR 1.274-2(b)(1) , Entertainment defined) pertaining to a single trip or event where the aggregate sale price of the item and all other items pertaining to the same trip or event that are sold in the same transaction (or related transactions) exceeds $10,000.

(3) There are exceptions to these rules. A cashier’s check, bank draft, traveler’s check, or money order received in a designated reporting transaction is not treated as cash if the instrument:

1. Constitutes proceeds of a loan from a bank. The recipient of cash may rely on a copy of the loan document, a written statement, lien instructions from the bank, or similar documentation as evidence that the proceeds are from a loan.

2. Is received in payment of a promissory note or an installment sale contract but only if promissory notes or installment sale contracts with the same or substantially similar terms are used in the ordinary course of the recipient's trade or business in connection with sales to ultimate consumers; and the aggregate payments for the sale that are received on or before the 60th day after the date of the sale do not exceed 50 percent of the purchase price of the sale.

3. Is received in payment for a consumer durable, collectible, or travel or entertainment activity under a payment plan requiring one or more down payments and payment of the rest of the purchase price by the date of sale (or the date of furnishing an item of travel or entertainment) and the following statements are true: i) The recipient uses payment plans with the same or substantially similar terms in the ordinary course of its trade or business in connection with sales to ultimate consumers; and ii) It is received more than 60 days before the date of sale.

(1) Transaction - A transaction subject to reporting is the underlying event precipitating the payer’s transfer of cash to the recipient. A transaction may be, but is not limited to:

• A sale of goods or services

• A sale of real property

• A sale of intangible property

• A rental of real or personal property

• An exchange of currency for other currency

• The establishment, maintenance of, or contribution to an escrow, trust, or custodial arrangement

• Payment of a pre-existing debt

• Conversion of currency to a negotiable instrument

• Reimbursement for expenses paid

• The making or repayment of a loan

(2) Related transactions are:

• Any transactions between a payer (or the agent of the payer) with the recipient that occur within a 24-hour period.

• Transactions conducted during a period of greater than 24 hours are related if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions.

(1) Any person who, while carrying on a trade or business, receives more than $10,000 in cash in one transaction, or two or more related transactions, must file Form 8300 by mailing it to the address shown on the form by the 15th day after the reportable cash payment was received. The form may also be filed electronically by using FinCEN's BSA E-Filing System found at https://bsaefiling.fincen.treas.gov/main.html.

(2) Filing is considered to occur on the date that the Form 8300 is postmarked under IRC 7502 , Timely mailing treated as timely filing and paying, if the postmark date is on or before the 15th day after the reportable cash payment and the Form 8300 was properly deposited in the U.S. mail. If the postmark date is after the 15th day, then filing occurs when the Form 8300 is received. If Form 8300 is filed electronically, the date and time in the filer’s time zone when the Form 8300 is transmitted controls whether the form is filed timely. The filer will receive an electronic acknowledgement that the IRS has accepted the electronically filed form. That acknowledgment will serve as evidence of when the form was filed.

(3) Form 8300 must contain the name, address, and Taxpayer Identification Number (TIN) of the person from whom the cash was received; the amount of cash received; and the date and nature of the transaction. Failure to complete the form in its eternity is considered an incomplete form and is subject to a penalty. If the business filing Form 8300 was unable to complete it due to reasons out of their control such as the customer refused to provide their identification number to the business, the business can notate in the corresponding field that the customer refused to provide identification. If not indicated on Form 8300, examiner should inquire if an attempt was made to get the identification number or determine the business failed to provide the required information. Refer to IRM 4.26.10.10.3.1 for additional details.

(4) In addition, if the recipient knows or has reason to know that the person from whom the cash was received conducted the transaction as an agent for another person, Form 8300 must contain the name, address, and TIN of the person on whose behalf the transaction was conducted. A Form 8300 is considered incomplete if a recipient knows or has reason to know that an agent is conducting the transaction for a principal, and the return does not identify both the principal and the agent.

(5) Before completing any transaction requiring the filing of a Form 8300, a recipient must verify the identity of the person from whom the cash was received.

1. For aliens or nonresidents, verification must be done using the person’s passport, alien identification card, or other official document evidencing nationality or residence.

2. Verification of the identity of any other person may be by any document normally accepted as a means of identification when cashing or accepting checks (for example, a driver’s license).

3. The document used to verify the identity must be recorded on Form 8300.

(6) A Form 8300 may be filed voluntarily if the filer believes the transaction is suspicious even if the transaction is $10,000 or less. The "Suspicious Transaction" box serves the same purpose for voluntarily filed forms not required to be filled as well as forms required to be filed. Marking the Form 8300 suspicious is voluntary. Form 8300s marked as suspicious are to be treated as confidential information and examiners should place Form 8300 marked suspicious in the confidential envelope with Form Other Gov TDF 15-05.11, Sensitive But Unclassified (SBU) Cover Sheet, on the outside cover of the case file and attached to the confidential envelope. Examiners should follow the procedures found in IRM 4.26.11.7.3.5, Suspicious Activity Reports (SARs).

(7) A person required to file a Form 8300 must keep a copy of each return filed for five years from the date of filing.

(8) See https://www.irs.gov/businesses/small-businesses-self-employed/form-8300-and-reporting-cash-payments-of-over-10000 for additional information regarding Form 8300 filing requirements.

(1) Any person required to make an information return under IRC 6050I(a), Cash Receipts of More than $10,000, must furnish a single, annual written statement to each person whose name is identified on Form 8300. The statement must include the following:

• The name and address of the information contact for the business filing the form,

• The aggregate amount of reportable cash received during the calendar year from the identified person, and

• That the information contained in the statement was reported to the Internal Revenue Service.

(2) The customer is not to be notified when a Form 8300 is voluntarily filed.

(3) Except as noted in (2) above, the statement must be furnished to the identified person by January 31 of the year following the transaction. The statement is considered furnished to the identified person if it is mailed to that person’s last known address.

(4) The statement is not required to be in any form or format.

• If there is only one Form 8300 filed during the year, a copy of that Form 8300 can satisfy the annual statement requirement. The copy contains the filer's name and address and the total amount of cash received, and the obvious purpose of the form is to report the transactions to the Service. Therefore, a Form 8300 filer can use a copy of the filed form as the required notification if it includes all the reportable transactions with the customer during the calendar year. It must be provided after the close of the year, otherwise it could not reflect the entire year. If the filer uses the filed Form 8300 as notification, the filer should redact his/her TIN from the copy of the Form 8300 given to the customer.

• If there is more than one transaction, the requirement of a single annual statement means that the Form 8300 amounts must be aggregated on one end-of-year statement with all the required information. The statement is sufficient by itself. Copies of the Forms 8300 may, but are not required to, be attached. The practice of providing a copy of the Form 8300 to the payer at the time of sale or sending multiple copies at year’s end does not meet the Form 8300 notice requirements.

(1) IRC 6724, Waiver; definitions and special rules, defines information returns for purposes of the information return penalty provisions found in IRC 6721 , Failure to file correct information returns.

1. The term "information return" includes any return required by IRC 6050I(a), Cash receipts of more than $10,000, or IRC 6050I(g), Cash received by criminal court clerks.

2. The failure to file penalty includes any failure to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, on or before the required filing date, and any failure to include all the information required to be shown on the return or the inclusion of incorrect information.

(2) IRC 6721 provides for a penalty when an information return is not timely and/or correctly filed by the due date of the return.

(3) IRC 6721 penalty rates and maximum amounts are subject to annual inflationary adjustments enacted by the Tax Increase Prevention Act (TIPA) of 2014, section 208, effective for returns required to be filed in a calendar year beginning after 2014.

(4) The Trade Preferences Extension Act (TPEA) of 2015, section 806, increased the tiered penalty amounts for IRC 6721. The following penalty amounts are effective for returns and statements required to be filed on or after January 1, 2016.

1. $50 per failure, not to exceed an annual maximum of $500,000 for returns filed correctly within 30 days of the due date.

2. $260 per failure, not to exceed an annual maximum of $3,000,000 for returns filed more than 30 days after the due date. The penalty is $270 after 1/1/2019.

   Note: There are lower annual maximums applicable to small businesses with gross receipts of $5 million or less. Penalty amounts are higher, with no maximum amounts, if the failure is due to intentional disregard. See IRM 4.26.10.10.1.

   Note: See BSA Policy SharePoint for penalty rates and maximum amounts with inflationary adjustments.

(5) An inconsequential error or omission is not considered a failure to include correct information, IRC 6721(c) , Exceptions for certain de minimis failures. A failure is inconsequential if it does not prevent the IRS from putting the return to its intended use. Errors or omissions never considered inconsequential include:

1. A Taxpayer Identification Number (TIN);

2. A surname of a person required to be furnished a copy of the information set forth on an information return; or

3. Any monetary amounts, 26 CFR 301.6721-1(c)(2) , Errors or omissions that are never inconsequential.

(6) Other reductions for certain information returns do not apply to Form 8300 :

1. Reductions that are related to corrections after 30 days but on or before August 1 of the year in which the form is due do not apply to Form 8300. See 26 CFR 301.6721-1(b)(6), Application to returns not due on February 28, or March 15.

2. The exception for a de minimis number of failures does not apply to Form 8300. See 26 CFR 301.6721-1(d)(4), Nonapplication to returns not due on February 28 or March 15.

(7) The penalty for intentional disregard of the requirement to timely file or to correctly include all required information, is the greater of:

1. $25,000 for each return, or

2. The amount of cash received in the transaction, not to exceed $100,000 (with no calendar year limitation applicable), IRC 6721(e)(2)(C) .

(8) Under IRC 6724(a) , Reasonable cause waiver, no penalty is imposed for any failure that is due to reasonable cause and not to willful neglect. See the discussion of reasonable cause below.

(1) IRC 6724, Waiver; definitions and special rules, defines payee statements for purposes of the information return penalty provisions of IRC 6722 , Failure to Furnish Correct Payee Statements.

1. The term "payee statement" includes any statement required to be furnished under IRC 6050I(e), Statements to be furnished to persons with respect to whom information is required, by businesses to persons required to be named in Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, or under IRC 6050I(g), Cash received by criminal court clerks, by clerks of court to Federal prosecutors or payers of bail, IRC 6724(d)(2)(N). This situation differs from most information returns, such as Forms W-2 or 1099, where the payee statement is provided by the payer filer to a payee.

2. There is no special form or format required for Form 8300 payee statements.

(2) IRC 6722 provides for a penalty when a payee statement is not timely and/or correctly furnished.

(3) IRC 6722 penalty rates and maximum amounts are subject to annual inflationary adjustments enacted by the Tax Increase Prevention Act (TIPA) of 2014, section 208, effective for returns required to be filed in a calendar year beginning after 2014.

(4) The Trade Preferences Extension Act (TPEA) of 2015, section 806, increased the tiered penalty amounts for IRC 6722. The following penalty amounts are effective for returns and statements required to be filed on or after January 1, 2016. See IRM 4.26.10.10.2.

1. $50 per failure, not to exceed an annual maximum of $500,000 for statements furnished correctly within 30 days of the due date,

2. $100 per failure, not to exceed an annual maximum of $1,500,000 for statements furnished correctly after 30 days, but on or before August 1, or

3. $260 per failure, not to exceed an annual maximum of $3,000,000 for statements not furnished by the due date (or not containing all required information or containing incorrect information) and not corrected by August 1. The penalty is $270 after 1/1/2019.

   Note: There are lower annual maximums applicable to small businesses with gross receipts of $5 million or less. Penalty amounts are higher, with no maximum amounts, if the failure is due to intentional disregard.

   Note: See BSA Policy SharePoint for penalty rates and maximum amounts with inflationary adjustments.

(5) Inconsequential errors and omissions in the payee statement are not considered failures. See 26 CFR 301.6722-1(b) , Exception for inconsequential errors or omissions.

1. A failure is inconsequential when it cannot reasonably be expected to prevent or hinder the identified person from timely receiving correct information and reporting it on his or her return or from otherwise putting the statement to its intended use.

2. Failures that are never inconsequential for a Form 8300 payee statement relate to dollar amounts and significant items in the address of the identified person.

(6) The penalty for intentional disregard of the requirement to timely furnish a correct payee statement is the greater of:

1. $500 for each statement, or

2. 10 percent of the aggregate amount of the items required to be reported correctly (with no calendar year limitation applicable), IRC 6722(e), Penalty in case of intentional disregard.

(1) The penalty for a failure relating to an information reporting requirement can be waived if the failure is due to reasonable cause and is not due to willful neglect, IRC 6724 , Waiver; definitions and special rules, and 26 CFR 301.6724-1 , Reasonable cause. The regulation spells out the requirements in general and defines each element that must be proven by the person required to file to avoid the penalty.

(2) The burden of proof is on the filer to establish:

1. Significant mitigating factors for the failure, such as prior to the failure, the filer was never required to file that return or furnish that statement for which the failure occurred, or that the filer has an established compliance history. See 26 CFR 301.6724-1(b) , Significant mitigating factors.

2. Alternatively, the filer must establish that the failure arose from events beyond the filer's control. This may include events resulting in the destruction of needed records or actions of others such as the IRS or refusal of the transactor to reveal their Taxpayer Identification Number (TIN) to the recipient. See 26 CFR 301.6724-1(c) , Events beyond the filer's control.

3. In addition to one of the above, it must also be established that the filer acted in a responsible manner both before and after the failure occurred. In other words, the filer must show that reasonable care was exercised and significant steps to avoid or mitigate the failure were taken. See 26 CFR 301.6724-1(d) , Responsible manner.

4. Mitigation means rectifying the failure as promptly as possible once the impediment was removed or the failure was discovered. Ordinarily, a rectification is considered prompt if made within 30 days after the date the impediment is removed, or the failure is discovered, or on the earliest date following a regular submission of corrections.

(3) Special rules apply to TIN issues. See 26 CFR 301.6724-1(e) , Acting in a responsible manner - special rules for missing TINs, and 26 CFR 301.6724-1(f) , Acting in a responsible manner - special rules for incorrect TINS.

(1) IRS does not have the authority to assess civil penalties under Title 31 for violations of the Form 8300 reporting and recordkeeping requirements. If it is determined that a penalty under Title 31 is appropriate, the case must be forwarded to the Financial Crimes Enforcement Network (FinCEN) through the BSA Policy Liaison to FinCEN. However, information obtained during a Form 8300 examination conducted under Title 26 may be disclosed to FinCEN only as authorized by IRC 6103 , Confidentiality and disclosure of returns and return information.

(2) Title 31 Form 8300 requirements do not include two important areas included under Title 26, so there is no penalty parallel to the Title 26 penalty in these situations:

1. There is no requirement to furnish an annual statement to the persons required to be identified in the Form 8300 and U.S. Attorney for the jurisdiction in which such person resides and the jurisdiction in which the specified criminal offense occurred; and

2. Clerks of court were not required to file Form 8300 under Title 31 until December 23, 2011. The requirement to file, under the regulation at 31 CFR 1010.331 , Reports relating to currency in excess of $10,000 received as bail by court clerks, became effective on July 9, 2012.

(3) Title 31 penalties are higher than the Title 26 penalties, even after the Title 26 penalty increase effective January 1, 2011. There are no limitations or reductions. There is no waiver for reasonable cause.

(4) There are two types of negligence penalties under Title 31.

1. 31 USC 5321(a)(6), Negligence, provides a penalty of not more than $500 on any nonfinancial trade or business that negligently violates any provision of or regulation prescribed under this subchapter.

2. If any nonfinancial trade or business engages in a pattern of negligent violations of any provision of or any regulation prescribed under this subchapter, the Secretary of the Treasury may, in addition to the basic negligence penalty, impose a civil money penalty of not more than $50,000 on the nonfinancial trade or business. This additional penalty is not available under Title 26.

(5) The Title 31 willfulness penalty found in 31 USC 5321(a)(1) is generally the same as the penalty for intentionally disregarding the rules in Title 26. This section provides that a domestic nonfinancial trade or business, and a partner, director, officer, or employee of a domestic financial institution or nonfinancial trade or business, willfully violating this subchapter or a regulation prescribed, or order issued under this subchapter is liable to the United States Government for a civil penalty of not more than the greater of the amount (not to exceed $100,000) involved in the transaction (if any) or $25,000.

(1) Structuring and related activities are prohibited and penalized under both Title 26 and Title 31 of the U.S. Code.

(2) The Title 31 structuring definition is limited to persons structuring to affect a "nonfinancial trade or business", whereas the Title 26 definition refers to a "trade or business".

1. The definition in IRC 6050I(f) , Structuring transactions to evade reporting requirements prohibited, provides that no person shall, for evading the return requirements of this section, cause or attempt to cause a trade or business to fail to file or to file an incomplete or incorrect return required by this section, or structure.

2. 31 USC 5324(b), Domestic Coin and Currency Transactions Involving Nonfinancial Trades or Businesses, provides that no person shall, for the purpose of evading the Form 8300 reporting requirements of 31 USC 5331, Reports relating to coins and currency received in nonfinancial trade or business, cause or attempt to cause a nonfinancial trade or business to fail to file or to file a return with a material omission or misstatement, or structure.

(3) As applied, the two structuring prohibitions reach the same result. They only apply if the trade or business is not required to file a CTR.

1. Title 26 arrives at this result in the initial filing requirement, which is limited to certain financial institutions defined in 31 USC 5312(a)(2), Financial Institution, and excepts those required to file a CTR, such as money services businesses.

2. Title 31 arrives at this result by reference to 31 USC 5331, which requires Form 8300 but excepts those who are required to file a CTR by 31 USC 5313, Reports on domestic coins and currency transactions.

(4) Although the application of the structuring provisions is the same, the penalties are different under the two titles.

1. The Secretary of the Treasury is authorized by 31 USC 5321(a)(4), Nonfinancial Trade or Business, to impose a civil money penalty on any person who violates any provision of 31 USC 5324, Structuring transactions to evade reporting requirement prohibited. The penalty may be up to the amount involved in the transaction.

2. Under Title 26 IRC 6050I(f)(2) , Penalties, any violation is subject to the same civil and criminal sanctions that apply to a person who fails to file or completes a false or incorrect return under this section. In other words, the provisions of IRC 6721 , Failure to file correct information returns, apply. See the general discussion of penalties in this section.

(1) Criminal penalties are available for failures to file Form 8300 under both titles, but there is no criminal failure to furnish under Title 31 because there is no requirement to furnish a statement under Title 31. Criminal structuring is discussed under structuring.

(1) Failure to file a timely correct and complete Form 8300 can result in civil and criminal penalties.

(2) Under IRC 6724(b) , Payment of penalty, civil penalties relating to information returns "shall be paid on notice and demand by the Secretary and in the same manner as tax". Thus, the usual civil statute of limitations found in IRC 6501, Limitations on assessment and collection, applies to assessment of Form 8300 penalties, as follows:

1. Under IRC 6501(a) , General Rule, the penalty must be assessed generally within three years from the date the return was filed. This rule applies to both negligent and intentional failures to include complete and correct information.

2. Under IRC 6501(c)(3) , No Return, the failure to file penalty may be assessed at any time. This rule applies to both negligent and intentional failures to file the Form 8300 .

(3) Under IRC 6050I(f)(2) , Penalties, which prohibits structuring, a violator is subject to the same civil and criminal sanctions applicable to a person that fails to file or completes a false or incorrect return under this section.

1. There is a three-year statute if the structuring was an attempt to cause a trade or business to file a Form 8300 containing a material omission or misstatement of fact.

2. No statute applies if the structuring caused a trade or business to fail to file.

(4) Similarly, criminal court clerk penalties under IRC 650I(g) , Cash received by criminal court clerks, depend on whether the required Form 8300 was filed. The regulations specifically refer to IRC 6721 , Failure to file correct information returns, through IRC 6724 , Waiver; definitions and special rules, for penalties. The statute under IRC 6501(a) , General Rule, is three years for a violation when the Form 8300 has been filed. There is no statute when a court clerk files no Form 8300 .

(5) Title 26 criminal prosecution is governed by IRC 7203 , Willful failure to file return, supply information, or pay tax, and IRC 6531 , Periods of limitation on criminal prosecutions. IRC 7203 provides that in the case of a criminally willful violation of any provision of IRC 6050I , the penalty shall be a felony with up to five years of imprisonment.

(6) Because IRC 7203 applies to any provision of IRC 6050I , IRC 6531 applies to:

1. Filing a Form 8300 that is not timely, complete, nor correct;

2. Failure to file Form 8300 ;

3. Structuring; and

4. Court clerk violations.

(7) IRC 6722, Failure to Furnish Correct Payee Statements, civil penalties for failure to furnish or include all required information in the statement required under IRC 6050I(e), Statements to be furnished to persons with respect to whom information is required, and IRC 6050I(g), Cash received by criminal court clerks, have no statute of limitations. They can be assessed at any time.

(8) The criminal penalty of IRC 7203 applies to any violation of IRC 6050I and the general statute of IRC 6531 applies so that the criminal prosecution is limited to within three years after the commission of the offense of failure to furnish.

(9) See IRM 4.26.11.12.10, Statute of Limitation for penalties under IRC 6721 and IRC 6722, for additional information.

(1) The civil statute of limitations for assessing civil penalties for violation of Title 31 requirements is six years from the date of the transaction for which the penalty is assessed. 31 USC 5321(b)(1), Assessments. There is no exception to the running of the statute for unfiled returns under Title 31. Even if the Form 8300 was not filed, the statute still runs in a case examined under Title 31.

(2) Criminal penalties are imposed under 31 USC 5322, Criminal Penalties, (filing) and 31 USC 5324, Structuring transactions to evade reporting requirement prohibited. There is no failure to furnish penalty under Title 31. Title 31 criminal penalties look to Title 18 for procedure. For non-capital offenses, 18 USC 3282, Offenses not capital, provides a general statute of limitations for finding an indictment or instituting an investigation within five years after the offense was committed.