GNYADA December 2013 Newsletter

Does A Cashier’s Check Trigger 8300 IRS Form? The customer paid for a car in part by wire transfer and in part using a cashier’s check in the amount of $10,000. The dealer’s question was whether he needed to file an 8300 form in connection with this transac- tion. less is “cash” if it is received in a retail sale or if it is a transaction where the dealer knows the con- sumer is trying to avoid the reporting requirement. However, the IRS also makes clear that receiving a cashier’s check for $10,000 will only trigger check for $10,000 and a wire trans- fer for the balance, the dealer would not have to file an 8300 form. However, if he or she received even one cent more in cash or cash equiv- alents, or if the dealer believed the buyer was structuring the deal 19

specifically to avoid the reporting requirement, then the dealer would have a duty to file an 8300 in con- nection with this transaction.

the reporting requirement if that cashier’s check is part of total cash payments that equal more than $10,000. In this case, the question is whether payment via a wire transfer in the same transaction constituted a cash payment that would put the transac- tion over the $10,000 cash amount and trigger a reporting requirement. The IRS Alert indicates that, “A wire transfer does not constitute cash for Form 8300 reporting,”

Keep in mind that the IRS rule requires dealers to report cash pay- ments greater than $10,000. A pay- ment of any amount up to and including $10,000 in cash (or cash equivalents) does not trigger the requirement to report the transaction to the IRS, as long as the dealer doesn’t suspect the buyer is attempt- ing to structure the deal just to avoid the reporting requirement. In its Automotive Alert, the IRS indi- cates that a “cashier’s check, bank draft, traveler’s check, or money order” in the amount of $10,000 or

Filings for qualifying events are due 15 days after the transaction.

Disclaimer: this article is intended to provide information only; it does not provide specific legal advice. If you require specific legal (or accounting) advice, talk to your dealership’s legal or accounting professionals.

Thus, if the only payments received in this transaction were a cashier’s

Year-End Tax Reminders Checklist

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YEAR;END TAX REMINDERS FOR AUTO DEALERS GNYADA ispleased tosupplyyourdealershipwith the2013Year-EndTaxReminders forDealersasabene0tofmem- bership in thisAssociation.Thiscomprehensivechecklist isageneralguide tohelpyourdealershipprepare forannual tax reporting. This reminderprovidesgeneral information regarding tax issues inautomobiledealershipsanddoes notconstitute legalor taxadvice.Forspeci0cadvice,consultyouraccountingprofessional.GNYADA thanksRichards, Witt&Charles,LLP forpreparing this checklist forourmembers.

Enclosed with this Newsletter is a 2013 year-end checklist for dealers. This checklist is a general guide to help dealers prepare for annual tax reporting requirements. The list is divided into two sections:

(1) a checklist for tax-related materials, and (2) a list of accounting reminders.

Dealers are reminded to review their records for available deductions, tax credits, and other tax savings. If your dealership has been remodeled, additional tax savings may be available. Reconciling key accounts and conducting parts inventory are examples of year-end accounting practices. GNYADA thanks Paul Charles, CPA, Richards, Witt and Charles for preparing this document for our members.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • December 2013

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