Settlement agents must file Form 8300 upon receipt of multiple "cash" items received in one transaction. The multiple payments may have been received at one time or over the course of the transaction. When working on a file, a settlement agent must report when "cash" is receipted into the file for deposit; and when the total of all the "cash" received is more than $10,000.

While some of the instruments listed above have a face amount of $10,000 or less, they are not defined as “cash” by the IRS for cash reporting purposes, such as personal checks or wires. Conversely, some of the instruments could be considered “cash” but are excluded when they have a face value of $10,001 or more. 

Keep in mind that just because the IRS classifies these instruments as “cash” they are not considered good or collected funds. All policies and procedures which determine when funds are collected must be adhered to before disbursing against any funds received.

The information provided herein does not, and is not intended to, constitute legal advice; instead, all information, and content, in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

Article provided by contributing author:
Diana Hoffman, Corporate Escrow Administrator
Fidelity National Title Group
National Escrow Administration