Check Casher Businesses - What Transactions to Track and Report
You are required to report:
- Checks totaling an amount over ten thousand dollars ($10,000) in one or more transactions for the same person within a calendar year.
You must provide the following information about each affected check presenter whenever it is available:
- Taxpayer Identification Number (TIN) or Social Security Number (SSN)
- Dates of the transactions
- Amounts of the transactions
Note: You may cash checks without a TIN or SSN, depending on your check cashing policy.
If your business meets this definition and at any time you charge a fee in excess of $2.00 to cash checks, then you are required to file information returns annually with FTB.
You are not required to track and report:
- Payroll checks - Checks for wages subject to withholding pursuant to Unemployment Insurance Code Section 13020, and treated as a payroll check pursuant to Civil Code Section 1789.35 for fee-setting purposes.
- Government checks - Checks issued by a federal, state, or local governmental entity and treated as a government check pursuant to Civil Code Section 1789.35 for fee-setting purposes.
- One-party checks - Checks drawn upon the maker's account and presented by the maker.
When you receive taxpayer identification numbers or social security numbers from your customers, use the same precautions you use to protect your employees' confidential information. The California Department of Consumer Affairs' Office of Privacy Protection has guidelines for protecting social security numbers.