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  • Businesses in U.S. Territories Must File Form 8300 with the IRS on Cash Transactions of $10,000 or More.

    The Internal Revenue Service today reminded businesses in U.S. territories that they must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, when they engage in cash transactions in excess of $10,000. The form must be filed within 15 days of the transaction.

     
    Businesses, including individuals who are sole proprietors that receive more than $10,000 cash in a transaction or in two or more related transactions in any U.S. possession or territory must file Form 8300 with the IRS. Possessions and territories include American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico and the U.S. Virgin Islands. This requirement is in addition to any filing obligation the business may also have with U.S. territory tax authorities under similar territory rules, including under a U.S. territorial mirror income tax code.

     
    Examples of businesses that may have to file Form 8300 include those that sell jewelry, furniture, boats, aircraft, or automobiles, as well as those that are pawnbrokers, attorneys, real estate brokers, insurance companies and travel agencies.

     
    Cash includes the coins and currency of the United States as well as foreign currency, cashier’s checks, bank drafts, traveler’s checks and money orders. The law also requires that businesses report related transactions occurring within a 24-hour period. If the same payer makes two or more transactions totaling more than $10,000 in a 24-hour period, the business must treat the transactions as one transaction and report the payments.

    Source: www.irs.gov


  • US Bill To Ban Federal Employment of Tax Debtors

    A Bill that would makes individuals with tax debts ineligible for federal employment has been marked up by the US House of Representatives Oversight and Government Reform Committee.

    The Bill was marked up following the publication of the IRS’s tax delinquency report, which identifies the total number of federal civilian employees who are tax-delinquent and the total amount owed. In 2014, 113,805 civilian federal employees owed a total of $ 1.14bn in taxes (compared with $ 1.07bn in 2013). In 2004, those tax debts amounted to only $ 600m.

    “The fact that our federal workforce owes more than one billion dollars in back taxes is a very serious problem,” said the Committee’s Chairman Jason Chaffetz (R – Utah). “As tax day approaches, and Americans across the country work to fulfill their civic responsibility to pay their taxes on time, federal workers should not be exempt.”

    “Steps must be taken to ensure that those who are delinquent satisfy their tax obligations,” he added. “If they refuse to do so, they should be held accountable.”

    Consequently, Chaffetz sponsored the Federal Employee Tax Accountability Act of 2015, and the Committee approved its markup by voice vote on March 25. The Act provides that individuals with “seriously delinquent tax debts” would be ineligible for federal employment.

    Not only would any individual who has such a tax debt be ineligible to be appointed, they could also be fired from their role as a federal employee. However, an employee may continue to serve, in a situation involving financial hardship, if his or her continued service “is in the best interests of the US, as determined on a case-by-case basis.”

    The Contracting and Tax Accountability Act of 2015 was also marked up by voice vote at the same time. That Act would prohibit the award of contracts or grants to corporations or individuals that have seriously delinquent federal tax debt.

    Source: www.tax-news.com