Auctioneers & IRS Form 8300 reporting

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The law requires that trades and businesses (such as auctioneers) report cash payments of more than $10,000 to the federal government by filing IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

This “Over $10,000” can be one cash payment in excess of $10,000 or a series of cash payments from the same buyer over a year exceeding $10,000.

“Cash” in this regard is considered coins and currency of the United States and a foreign country. Cash may also include cashier’s checks, bank drafts, traveler’s checks, and money orders with a face value of $10,000 or less.

“Cash” does not include personal checks drawn on the account of the writer nor a cashier’s check, bank draft, traveler’s check or money order with a face value of more than $10,000.

One transaction is generally deemed any “cash” received within a 24-hour period. Related transactions can take place over a year following the first cash payment.

Generally, a business must file Form 8300 within 15 days after they receive over $10,000 in cash. If the 15th day falls on a Saturday, Sunday, or holiday the business must file the report on the next business day.

The IRS has developed this comprehensive guide concering the IRS Form 8300: https://www.irs.gov/businesses/small-businesses-self-employed/irs-form-8300-reference-guide. There’s even a summary and quiz covering the major topics here.

Mike Brandly, Auctioneer, CAI, CAS, AARE has been an auctioneer and certified appraiser for over 30 years. His company’s auctions are located at: Mike Brandly, Auctioneer, RES Auction Services and Goodwill Columbus Car Auction. He serves as Distinguished Faculty at Hondros College, Executive Director of The Ohio Auction School, an Instructor at the National Auctioneers Association’s Designation Academy and America’s Auction Academy. He is faculty at the Certified Auctioneers Institute held at Indiana University and is approved by the The Supreme Court of Ohio for attorney education.