Effective Jan. 1, 2024, businesses must electronically file (e-file) Forms 8300 if they are required to e-file certain other information returns electronically, such as Forms 1099 series and Forms W-2. Dealers must e-file Forms 8300 in a given calendar year if they are required to file at least 10 information returns of one or more types, other than Form 8300, beginning with the calendar year 2024. The number of Forms 8300 filed does not affect the information return threshold requirement.

For additional information, visit https://www.irs.gov/newsroom/e-file-form-8300-reporting-of-large-cash-transactions.

The IRS requires that all customers identified on a cash reporting Form 8300 during 2023 be notified, in writing, by January 31, 2024. The notification must include the name and address of the dealership (correspondence on dealership letterhead will suffice) and the amount of cash reported. The following is sample wording for the notice:

Date

Dear (Customer Name):

We are required by the Internal Revenue Service to report all transactions involving more than $10,000 in cash [26USC 6050 (1)].

We filed Form 8300 with the IRS on (date, 2023), indicating that you gave us $(amount) in connection with your purchase of a (make, model year, VIN).

Sincerely,

Dealership Name

The exact wording of the customer notification should be reviewed by the dealership’s legal advisor. Dealers are encouraged to review 2023 transactions carefully to be certain that all affected customers are notified in writing and to maintain a copy of the notification for their records.

PAA Offers Cash Reporting & Other Reviews

PAA offers an 8300 Cash Reporting Compliance Review, in addition to reviews in the areas of Safeguarding Customer Information, Sales and Use Tax, Sales Process, and Motor Vehicle Sales Financing. For more information contact Becky Ross at bross@paa