The IRS requires that all customers identified on a cash reporting Form 8300 during 2017 be notified, in writing, by January 31, 2018. 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:
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, 2017), indicating that you gave us $(amount) in connection with your purchase of a (make, model year, VIN).
The exact wording of the customer notification should be reviewed by the dealership’s legal advisor. Dealers are encouraged to review 2017 transactions carefully to be certain that all affected customers are notified in writing and to maintain a copy of the notification for their records.
Electronic Filing for Form 8300
The Financial Crimes Enforcement Network (FinCEN) announced in September 2012 that eligible business are now able to electronically file Form 8300 using the Bank Secrecy Act (BSA) Electronic Filing System. E-Filing is a free, web-based system that allows businesses to submit their reports through a secure network. More information is available at www.fincen.gov.
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, Safety Inspection and Motor Vehicle Sales Financing. For more information contact Allison Mitchell at [email protected].
Courtesy of PAA Bulletin No 1 • January 5, 2018