For Colorado audits, the IRS is requesting bank statements, deposit slips, cash receipts journals, METRC reports, detailed point of sale reports, written policies governing the 8300 reporting, listings of employees that handle cash sales, copies of filed 8300 reports, and required notifications for the operations’ customers to determine compliance.
Form 8300 is required to be filed within 15 days of receiving in excess of $10,000 for a product sale. Failure to file form may result in a $100 per form penalty prior to January 1, 2016 and the penalty goes up to $250 per form after that date. Substantial penalties can result if the IRS determines willful neglect or fraud in relation to the filing requirement.
Cash includes the 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, if the business receives the instrument in certain payment scenarios.
When an operation is required to file a Form 8300, the law requires the operator to provide a written statement to each person(s) named on Form 8300 to notify them that the business has filed the form. This requirement to provide a written statement does not apply with respect to a Form 8300 filed voluntarily, including a Form 8300 to report a suspicious transaction involving less than $10,000.
The statement must include the name and address of the cash recipient's business, name and telephone number of a contact person for the business, the total amount of reportable cash received in a 12-month period, and a statement that the cash recipient's is reporting the information to the IRS. The statement must be sent to the customer before January 31 of the year that follows the year in which the payment was made.
Please contact us at 720-335-5272 or info@jankovicllc.com for IRS audit representation or assistance in completing the 8300 Forms.