U.S. Lawyers Continue to Resist Cash Reporting

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Thursday, May 1, 1986
Bruce Zagaris
Section 6050I of the Internal Revenue Code, enacted as part of the Tax Reform Act of 1984, requires the recipient (e.g. a bank, or a financial institution) of a cash payment or related series of payments of $10,000 or more received in the course of a trade or business to report the payor's name, the amount, and the purpose of the payment to the Internal Revenue Service on IRS Form 8300.  No exceptions exist from the reporting requirement.  The purpose of Section 65050I is to provide an audit trail to enable the IRS to trace activities of money launderers, and preclude the evasion of taxes and the Bank Secrecy Act.