Quoted from vdojaq:
I was correct that it was 100% not an urban myth.
I was incorrect about it be ANY payment of cash or check.
However, our Mr.Cabinet Maker will probably find himself in hot water with the IRS because he knew those payments were to skirt the IRS. In which case, he was REQUIRED to report it.
urban myth that by taking multiple payments under 10k means you dont have to report. Reality is that it does need to be reported and after things are done with the court case I would guess the IRS will be interested in talking with him about these transactions also?
What Payments Must Be Reported?
You must file Form 8300 to report cash paid to you if it is:
1.One lump sum of over $10,000,
2.Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or
3.Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000,
3.Received in the course of your trade or business,
4.Received from the same buyer (or agent), and
5.Received in a single transaction or in related transactions (defined later).