GNYADA 2019 Membership Directory & Services Guide

hot topics / 2019 membership directory & services guide

IRS Form 8300: Reporting of cash payments in excess of $10,000 • For forms required to be filed on and after January 1, 2019:

• Generally, for failure to timely file a complete and accurate Form 8300 or to furnish notice to persons on whom Form 8300s were filed, the penalty is $270 per report with an aggregate annual limit of $1,091,500 for businesses with gross receipts not exceeding $5 million and $3,275,500 for businesses with gross receipts exceeding $5 million. Revenue Procedure 2018-18. • For failure to file due to intentional disregard, the penalty is the greater of $27,290 or the amount of cash received, not to exceed $109,000. Revenue Procedure 2018-18. • For failure to furnish notice to persons on whom Form 8300s were filed due to intentional disregard, the penalty is $540 per failure or, if greater, 10% of the aggregate amounts of the items required to be reported. Revenue Procedure 2018-18. • Note that the IRS adjusts the penalty amounts for inflation annually.

Used Car Rule • Up to $41,484 per violation. 16 C.F.R. § 455.1; 16 C.F.R. § 1.98. • Possible state AG claims under UDAP and motor vehicle sales laws. • Possible UDAP claims or fraud claims under state laws..

Federal Odometer Act • The Department of Transportation can impose penalties of up to $10,281 per violation, subject to a $1,028,190 cap for a related series of violations. 49 C.F.R. § 578.6(f)(1). • In a private party civil action where the violation involves the intent to defraud, liability is the greater of three times the actual damages or $10,281. 49 C.F.R. § 578.6(f)(2). FTC Telemarketing Rule • Up to $41,484 for each violation; redress to injured consumers; disgorgement of ill-gotten gains earned from the unlawful conduct. 16 C.F.R. § 310.3; 16 C.F.R. § 310.4; 16 C.F.R. § 1.98. • For dealers, subject to BCFP regulation, regulation per day penalties of up to $5,639, for violations that are not reckless or knowing. The cap for reckless violations is $28,195 per day; the cap for knowing violations is $1,127,799 per day. 12 U.S.C. § 5565(a), (c); 12 C.F.R. § 1083.1. • States may also obtain relief.

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