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Checks Become Cash-For Businesses Only
You may have heard or read that the Internal Revenue Service (IRS) has proposed that official checks-cashier's checks, bank drafts, traveler's checks, and money orders-are to be considered as "cash" as far as reporting "over $10,000" transactions.
This proposed rule on reporting is meant for businesses only, for reporting "over $10,000" transactions on Form 8300.
It does not change any financial institution reporting, which is for cash transactions only-in the form of cash. Our transactions are still reported on a Form 4789.
If and when this ruling becomes effective, any business that receives more than $10,000 in a single transaction, or even in a series of related transactions, in the form of cash or including the items listed above, must report it on Form 8300 to the IRS.
At the moment, it is still under consideration by Congress. We see a few problems in implementing this rule. We'll keep you posted.
Copyright © 1991 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 2, No. 8, 10/91
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