← The Rules
What happens when you pay more than $10,000 in cash for something?
Short answer
The business has to file IRS Form 8300 within 15 days, reporting the buyer's name, address and taxpayer ID. Related payments that add up to more than $10,000 count too.
It applies to car dealers, jewelers, contractors and most other businesses, not just banks. The filings go into a database that law enforcement can search.
In Part 3, Dre paid cash for a gold chain and new rims. Two businesses, two reports, one name.
Sources: IRS: Form 8300 and reporting cash payments · 26 U.S.C. § 6050I (Cornell LII)
US federal rules, explained for a story. Not legal advice.