Each person engaged in a trade or business that, in the course of that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file Form 8300.
Form 8300 is a joint form issued by the IRS and the Financial Crimes Enforcement Network (FInCEN) and is used by the government to track individuals that evade taxes and those who profit from criminal activities. Cash reporting requirements apply to many types of businesses, auto dealerships frequently receive cash in excess of $10,000 and are required to comply with these filing.
Businesses should File Form 8300 by the 15th day after the date the cash was received. If that date falls on a Saturday, Sunday, or legal holiday, you must file the form on the next business day.
A business should keep a copy of every Form 8300 it files and the required statement it sent to customers for at least five years from the date filed.
There are civil penalties for failure to file a correct Form 8300 by its due date and for failure to provide a statement as required. Additional penalties apply for intentional disregard of the filing requirements. Criminal penalties may apply in the case of willful filing of false or fraudulent Forms 8300.
The business should report suspicious activity by checking the “suspicious transaction” box (box 1b) on the top line of Form 8300. Businesses are also encouraged to call the IRS Criminal Investigation Division Hotline at 800-800-2877 or the local IRS Criminal Investigation unit.
The business may voluntarily file a Form 8300 in those situations where the transaction is $10,000 or less and suspicious.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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