A Refresher on IRS Cash Reporting Requirements
Any dealer who accepts payments in cash should be aware of Form 8300. The IRS says 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. The form must be filed electronically or by mail within 15 days of the receipt of the cash.Cash includes:
- Currency- bills and coins
- cashier's checks*
- money orders*
- bank drafts*
- traveler's checks*
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
- Cash payments or installments on the purchase of a vehicle received within a 12-month period
There are many different situations in which the cash reporting requirement may be triggered, far more than a blog post can address. If you have questions, reach out to your attorney or contact the TIADA state office.