The customer retracts a cashier’s check originally for $10,001, and resubmits one in the amount of $10,000, causing the dealer to sus- pect the customer has restructured the deal to avoid the need for an 8300. Then, the dealer has a duty to file the form.
check for $10,000 or less will only trigger the reporting requirement if that cashier’s check is part of total cash/cash equivalent payments total- ing more than $10,000, or (again) if the consumer is actively trying not to trigger the report. A dealer takes payment of a cashier’s check for $10,000 and a wire transfer for the remaining balance. Here, the dealer does not have to file an 8300 form. The dealer receives a cash / cash equivalent payment for $10,001. In this case, they must file an 8300. Take the following scenarios:
The IRS requires dealers to report any cash payments greater than $10,000, using IRS Form 8300. Payments up to and including $10,000 in cash (or cash equivalents) do not trigger this requirement. The only exception to this is if the dealer suspects the buyer is attempting to arrange the deal in a certain way, specifically to avoid the reporting requirement. The IRS considers the following to be cash equivalents: cashier’s checks, bank drafts, traveler’s checks, money orders. Payments in those forms for $10,000 or more do require an 8300 to be filed. However, the IRS also makes clear that receiving a cashier’s
Filings for qualifying events are due 15 days after the transaction.
Reminder: All customers who were identified on an 8300 form during 2016 must be notified, in writing, of the form’s submission to the IRS no later than January 31, 2017. For more information, including details on filing 8300 forms electr nically, visit www.gnyada.com o
No Inspections Required for Out-of-State Sales 20
Drive Down Your Workers’ Comp Premiums Upfront Savings: GNYADA members get an upfront discount on their premium, an industry-specific safety plan, and job classifications done at the time of underwriting, ensuring the lowest rates possible at the inception of the policy.
Dealers occasionally call our Dealer Hotline asking whether they must inspect a vehicle that is being sold to an out-of-state resident. The answer is, “No.” Sales to out-of-state residents are specifically exempted from inspec- tion under state regulations. A vehicle sold to a nonresident, which is either receiving an “in-transit per- mit” from the dealership or is going to be exported, does not require an inspection in New York. However, it will usually have to be inspected in the state where it will be registered. Any vehicle that is going to be regis- tered in New York must be inspected, even if it will later be registered in another state.
CONTACT: Michael W. Conway at the GNYADA Insurance Brokerage to get a quote.
Greater New York Automobile Dealers Association • www.gnyada.com
The Newsletter • November 2016 11
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