Year End Reminder About IRS Form 8300

With the end of 2019 looming in the weeks ahead, it is a good time to remind dealers to check their accounts for payments in excess of $10,000.  To be clear the term “cash” is not just currency but includes other payments such as money orders and cashier's checks.  The $10,000 trigger can also be met by a combination of payments over the course of the year.  The payment threshold will also be met if for multiple vehicles or multiple family members (example: husband and wife buy two $9,000 vehicles).

To be clear, the IRS states that you MUST file Form 8300, Report of “Cash” Payments Over $10,000 Received in a Trade or Business “If your business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions in aggregate during the year.” The 8300 form must be filed electronically or by mail within 15 days of the receipt of the cash. If you are required to file Form 8300, you must do so by the 15th day after the date the cash transaction occurred. A person can file Form 8300 electronically or by mailing the form to the IRS at: Detroit Computing Center, P.O. Box 32621, Detroit, Michigan 48232.

“Cash” or cash equivalent includes:
Currency- bills and coins
Cashier's checks*
Money orders*
Bank drafts*
Traveler's checks*
*Reportable if (A) the face amount of the instrument is $10,000 or less AND (B) the vehicle had a sales price of more than $10,000.
What is a Related Transaction?
A lump sum cash payment of $10,000 or more.

Someone purchases two or more cars at one time from the same dealer and the total cash received is $10,000 or more (Ex. Family members).
Cash payments or installments payments that total over $10,000 on the purchase of a vehicle received within a 12-month period.
What if the buyer does not have a Social Security number? Under the filing exception as described in Publication 1544, a filer is not required to provide the Tax Identification Number TIN of a person who is a nonresident individual or foreign organization.  However, name and address verification is required, and the source of the verification must be included in item 14 of Form 8300. For nonresident aliens, acceptable documentation would include a passport, alien registration card or other official document.  Example:  A nonresident alien with no SSN or ITIN  makes a purchase requiring Form 8300 reporting and presents a Mexican driver's license to verify his name and address. A driver's license issued by a foreign government would be acceptable documentation for name and address verification purposes.


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