![]() ![]() ![]() Settlement agents must file Form 8300 upon receipt of multiple “cash” items received in one transaction. Cashier’s checks, official checks, bank drafts, traveler checks and money orders if they have a face value of $10,000 or LESS.Pursuant to the IRS Regulations, businesses who receive “cash” payments in excess of $10,000 need to report the funds received. The receipt of the money orders triggered an obligation to file IRS Form 8300. This is when she contacted her Escrow Administrators. She explained she would look into exactly what information she needed and get back with him. After she picked her jaw up from her desk, she informed the agent she would have to file some additional forms and needed some information from the buyer. Inside the envelope was the earnest money deposit of 100 money orders, in increments of $500. So far so good, right?Īlong with a copy of the Purchase and Sale Agreement, the real estate agent delivered an envelope to the escrow officer. According to the Purchase and Sale Agreement the buyer agreed to deposit $50,000 in earnest money with the escrow company and the sale was scheduled to close in less than a week. It was the purchase of a REO property with a sales price of $1.3 million. She had just opened a new sale transaction. A $50,000 earnest money depositĪn escrow officer for one of our sister branches contacted our National Escrow Administrators for assistance. Read on for the details of a transaction in which cash was received and reported. ![]() The study confirmed the importance of Title and Escrow Companies filing of IRS Form 8300 – Report of Cash Payments Over $10,000 Received in a Trade or Business. The Financial Crimes Enforcement Network (FinCEN) recently published their findings of a study they conducted assessing Suspicious Activity Reports (SARS) and Suspicious Form 8300 Filings Related to Real Estate Title and Escrow Businesses 2003–2011. ![]()
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