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Form 8300. We are doing a business to business transaction.

Form 8300 JA: The Accountant will...
Form 8300
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: We are doing a business to business transaction. The form is not clear on how to compete. Do we complete Part I f
JA: Is there anything else the Accountant should be aware of?
Customer: sorry hit send too soon. john doe works for xyz inc. xyz inc is paying and invoice to my company Sun Direct LLC in the amount of $12,000 Do I need to put John Doe's information in Part I and XYZ inc in Part II Or do I just fill out Part II for XYZ inc John DOe does not want to give me his SSN because the has nothing to do with the money. He just works for XYZ inc and happens to be the person handing me the money today
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Answered in 2 minutes by:
11/18/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,227
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this.

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You MUST put John's information in part I and then XYZ's in part II.

...

THis form is used to provide accountability in the event money laundering is involved. If this WERE money laundering John would be an accessory.

...

If he is simply an employee and has no knowledge of the source of the funds and is doing this as part of his job duties, then upon any investigation, he would be exonerated.

...

It's also important to note that form 8300 is only for cash transactions.

...

Cash Does Not Include

Cash does not include:

  • Personal checks drawn on the account of the writer.
  • A cashier’s check, bank draft, traveler’s check or money order with a face value of more than $10,000.

When a customer uses currency of more than $10,000 to purchase a monetary instrument, the financial institution issuing the cashier’s check, bank draft, traveler’s check or money order is required to report the transaction by filing the FinCEN Currency Transaction Report (CTR).

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Customer reply replied 2 months ago
Hi Lane,Thank you for the response. What do I do if John will not provide his SSN? Can I get something in writing signed by him stating he’s refused to provide that information?

That is likely answered best by providing this from IRS (gives you a couple of options) bear with me a sec:

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"Taxpayer Identification Number (TIN)

A business must obtain the correct TIN of the person(s) from whom they receive the cash. If the transaction is conducted on behalf of another person or persons, the business must also obtain the TIN of that person or persons. Failure to include all required information or inclusion of incorrect information, on Form 8300, may result in civil or criminal penalties. However, a filer may be able to avoid penalties when the customer refuses to provide a TIN by showing that its failure to file is reasonable under circumstances more fully described in 26 CFR(###) ###-####1(e) and (f).

Under the filing exception as described in Publication 1544, a filer is not required to provide the TIN of a person who is a nonresident individual or foreign organization. However, name and address verification is required, and the source of the verification must be included in item 14 of Form 8300. For nonresident aliens, acceptable documentation would include a passport, alien registration card or other official document.

Example: A nonresident alien with no SSN or ITIN makes a purchase requiring Form 8300 reporting and presents a Mexican driver’s license to verify his name and address. A driver’s license issued by a foreign government would be acceptable documentation for name and address verification purposes.

Reporting Suspicious Transactions

There may be situations where the business is suspicious about a transaction. A transaction is suspicious if:

  • It appears that a person is trying to prevent a business from filing Form 8300,
  • It appears that a person is trying to cause a business to file a false or incomplete Form 8300, or
  • There is a sign of possible illegal activity.

The business may report suspicious transactions by checking the “suspicious transaction” box (box 1b) on the top line of Form 8300. Businesses may also call the IRS Criminal Investigation Division Hotline at(###) ###-#### or the local IRS Criminal Investigation unit to report suspicious transactions. If a business suspects that a transaction is related to terrorist activity, the business should call the Financial Institutions Hotline at(###) ###-####

The business may voluntarily file a Form 8300 in those situations where the transaction is $10,000 or less and suspicious. Because the Form 8300 is not required in those situations, there is no requirement to send a statement to the payor."

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Customer reply replied 2 months ago
Thanks Lane. Hey, you have a nice thanksgiving ��

You too!

...

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

...

Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,227
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
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Lane
Lane
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Category: Tax
Satisfied Customers: 13,227
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