Sorry, I guess I should clarify. My local store seems to do most of their business in cash, for whatever reason. I dont think I've seen anyone pay with anything other than cash. The rules are different for any other payment. Obviously anything other than a cash payment initiates a transaction that can be tracked, and generates a paper trail.
From the IRS:
Filing Requirements:
Who must file Form 8300?
Any persons who receive more than $10,000 while conducting their trade or business must file a Form 8300. The $10,000 may occur in a single transaction, or a series of related transactions.
What payments must be reported?
A business must file Form 8300 to report cash paid to it if the cash payment is:
Over $10,000,
Received as:
One lump sum of over $10,000,
Two or more related payments that total in excess of $10,000, or
Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.
Received in the course of trade or business,
Received from the same buyer (or agent), and
Received in a single transaction or in two or more related transactions.
What is the definition of a transaction?
A transaction is the underlying event resulting in the transfer of cash. Examples include:
Sale of goods, services or real or intangible property
Rental of goods or real or personal property
Cash exchanged for other cash
Establishment, maintenance of or contribution to a trust or escrow account
A loan repayment
Conversion of cash to a negotiable instrument such as a check or a bond
What is a related transaction?
Transactions between a buyer, or agent of the buyer, and a seller that occur within a 24-hour period are related transactions.
In addition, transactions more than 24 hours apart are related if the recipient of the cash knows, or has reason to know, that each transaction is one of a series of connected transactions.
Does the 24-hour period mean one day such as all day Tuesday or does it mean literally 24 hours such as from 11 am on Tuesday to 11 am on Wednesday?
A 24-hour period is 24 hours, not necessarily a calendar day or banking day.
What does "cash" mean for the purposes of Form 8300?
Cash is money. It is currency and coins of the United States and any other country. Cash is also certain monetary instruments - a cashier's check, bank draft, traveler's check, or money order - if it has a face amount of $10,000 or less and the business receives it in:
A "designated reporting transaction" as defined in Treas. Reg. section 1.6050I-1(c)(iii) (generally, a retail sale of a consumer durable, a collectible, a travel or entertainment activity) or
Any transaction in which the recipient knows the payer is trying to avoid the reporting of the transaction on Form 8300.
What is a designated reporting transaction?
Generally, a designated reporting transaction is the retail sale of any of the following:
A consumer durable, such as an automobile or boat. Property is generally a consumer durable if it is tangible personal property (not real or intangible property) that:
Is generally suited for personal use,
Is expected to last at least one year under ordinary use, and
Has a sale price of more than $10,000.
A collectible (such as a work of art, rug, antique, metal, gem, stamp, or coin)
An item of travel and entertainment (if the total sales price of all items for the same trip or entertainment event is more than $10,000).
If an item (an automobile, for example) sells for $9,950 but the buyer pays $10,650 (sales price plus state and local taxes). Would this be considered a designated reporting transaction (retail sale of a consumer durable) requiring the definition of cash to be expanded to include monetary instruments?
In determining a designated reporting transaction, a consumer durable is defined as tangible personal property that is generally suited for personal use, is expected to last at least one year under ordinary use, and has a sale price of more than $10,000 (exclusive of sales tax). If the sales price is less than $10,000, then the tangible personal property would not be a consumer durable regardless of any taxes.
Does a wholesaler report transactions paid in US (or foreign) coins and currency only?
Yes, if the wholesaler receives payment in the form of coins or currency. A wholesaler, however, need not report transactions paid with cashier's checks, bank drafts, traveler's checks or money orders.
What if a retailer also does some wholesale transactions, must the business report all transactions, or just the retail ones?
If the trade or business of the seller principally consists of sales to ultimate consumers, then all sales, including wholesale transactions, are considered "retail sales" and are subject to the Form 8300 reporting requirements.
Is a personal check considered cash for reporting on Form 8300?
Personal checks are not considered cash.
I assume all of this is to prevent money laundering.