![]() There is some confusion as to whether state-supported colleges and universities must file Form 8300. The regularly carried on factor has no bearing on determining whether institutions must report payments in excess of $10,000. The UBI meaning of “trade or business,” in addition to the generation of income, requires that the trade or business is “regularly carried on” in the manner that commercial activities normally are pursued. “Trade or business” under that section generally refers to the production of income from the sale of goods or the performance of services. §1.6050I-1(c)(6), “trade or business” has the same meaning as under IRC §162, Trade or business expenses. It is important not to interpret the second exception as equating the meaning of “trade or business” for cash reporting purposes with that of unrelated business income activities. ![]() The payment is a charitable contribution because such contributions are not viewed as part of the college or university’s trade or business.The transaction is not in the course of the college or university’s trade or business.The transaction occurs entirely outside of the United States.Three circumstances exempt a college or university from reporting a cash payment in excess of $10,000: received as part of a single transaction (or two or more transactions) over a 12-month period, such as a three-part tuition payment.received in two or more related transactions over a 24-hour time period (if the business knows the transactions are related, the 24-hour rule does not apply) or.The payment is received in the ordinary course of the trade or business.See Figure 803.7-1.Īs a general rule, any trade or business, including both public and private colleges and universities, must file Form 8300 when they receive more than $10,000 in cash in a single transaction or a series of related transactions, subject to certain exceptions and conditions.įiling is required if the more-than-$10,000 cash payment is made under the following circumstances: Many colleges and universities have a form that recipients of the cash complete and return immediately to the college business office or other designated individual. 1544, Reporting Cash Payments of Over $10,000 (September 2014) and IRS Form 8300 Reference Guide.īecause it makes sense to obtain most of the required information at the time of the transaction, many colleges and universities have established strict policies and procedures of when and what to do when a cash payment of more than $10,000 is made. In addition it must obtain information about the payer and the payment itself to record on Form 8300. To determine whether the transaction requires reporting on Form 8300, the institution must know the purpose and amount of the payment and the method of payment (e.g., cash, cashier’s check, money order). Typically, for colleges and universities tuition payments are the types of transactions that require this reporting. The form must be filed for any payments of cash received by an institution in excess of $10,000 in a single transaction or two or more related ones. ![]() Both provisions require a report, and to avoid duplicate reporting, the agency has deemed Form 8300 to satisfy both reporting requirements. The reporting requirement is aimed at prevention of money laundering for illegal purposes.Īuthority for this reporting is in IRC §6050I, “Returns relating to cash received in trade or business, etc.,” and 31 USC §5331, “Reports relating to coins and currency received in nonfinancial trade or business.” The second statutory provision is that of the Financial Crimes Enforcement Network (FinCEN), which, like IRS, is part of the Department of the Treasury. ![]() Another reporting obligation imposed on colleges and universities is filing Form 8300.
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