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2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE HOT TOPICS

SEND CASH REPORTING/FORM 8300 LETTERS

When customers pay your dealership with more than $10,000 cash or “cash equivalents”, such as a check, traveler’s check, or money order, you are required to file Form 8300 with the IRS. Dealers must also notify those customers with regard to whom a form was filed, in writing, no later than January 31 of the following year . Severe Civil and Criminal Fines possible Willful failure to file the form or notify your customer can lead to severe civil and criminal penalties. Penalties for these failures were increased in 2011 and some violations have no maximum penalties! Failure to notify your customer in writing can result in penalties of ten times the amount that was to be reported in each instance, with no maximum for the year. Below is a sample letter you may customize to notify any of your customers who paid for their purchases with more than $10,000 in cash. Send it to any customer for whom you filed an 8300 Form. Keep a copy of the letter on file.

Date Dear Customer: We are required by the Internal Revenue Service (IRS) to report all transactions involving payments of more than $10,000 in cash (26 USC 6060(I)). We filed Form 8300 with the IRS on (date), 2012, indicating that you paid us $(amount) in connection with your purchase of a (year, make, model, VIN).

Sincerely, Dealership Name

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