A borrower pays a $14,000 origination deposit to the mortgage company in cash across 2 visits in the same week.
Correct Answer
B) Form 8300 is filed: a trade or business receiving over $10,000 in cash
A trade or business that receives more than $10,000 in cash in one transaction or in related transactions files Form 8300, and two visits in one week for the same deposit are related. Other choices: related transactions are aggregated, which is what defeats splitting a payment into 2 visits; the SAR is a separate filing with its own trigger and does not substitute for this one; and a refusal to give a taxpayer number is a problem to note on the form rather than the thing that creates the duty. Source: 31 CFR 1010.330, reports of cash in excess of $10,000
Why This Is the Correct Answer
A trade or business that receives more than $10,000 in cash in one transaction or in related transactions files Form 8300, and two visits in one week for the same deposit are related. Other choices: related transactions are aggregated, which is what defeats splitting a payment into 2 visits; the SAR is a separate filing with its own trigger and does not substitute for this one; and a refusal to give a taxpayer number is a problem to note on the form rather than the thing that creates the duty. Source: 31 CFR 1010.330, reports of cash in excess of $10,000
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