Guide to Accepting Large Cash Payments

Report it to the IRS

If you accept more than $10,000 in cash from one buyer, paid once or in installments over a 12-month period, you most likely will have to send in IRS Form 8300 within 15 days. You'll also have to ask the buyer for a Social Security or tax ID number to fill out the form.

I recommend: Read the IRS regulations carefully because there are plenty of qualifiers.In some cases, traveler's checks and money orders count as "cash" but in some cases, not. The rules cover "consumer durables" so a car purchase counts but a dump truck purchase doesn't. Download Form 8300 from the IRS.

Avoid scams

Money launderers may try to talk you out of filing Form 8300. Don't listen.

I recommend: Read a warning note to car dealers about an "exemption certificate" scam. And remember that your bank is going to file another form to the IRS reporting your large cash deposit so you are being watched.

Negotiate fees with your bank

If you're going to accept large cash payments regularly, ask your bank about fees and services for handling bills and coins

I recommend: Use this menu of deposit services from Regions bank as an example.