“Cash” deposits received by the settlement agent in the same transaction within a 12-month period that total more than $10,000 must be reported to the IRS on Form 8300. The completed Form 8300 is due to the IRS 15 days after the “cash” triggering the reporting requirement is received, regardless of whether the transaction has closed or not.
The regulation’s overall purpose is to track illegal activity allowing for the possibility of filing a Form 8300, even if reporting is not required. Settlement agents may file a Form 8300 voluntarily if it appears someone is attempting to cause the form not to be filed or if someone is attempting to file a false or incomplete form. However, always consult with your management before filing Form 8300 voluntarily.
In the coming months, Fraud Insights will define “cash” and provide tools to identify a reportable transaction.
The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, and content, in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
Article provided by contributing author:
Diana Hoffman, Corporate Escrow Administrator
Fidelity National Title Group
National Escrow Administration
Original article appeared here: https://fraudinsights.fnf.com/vol18iss06/article3.htm
