GNYADA November 2019 Newsletter

11 FTC Raising Fees to Access Do-Not-Call List in 2020

The IRS requires dealers to report any cash, or cash equivalent payments over $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 is if the dealer suspects the buyer is attempting to arrange the deal specifically to avoid the reporting. Cash equivalents are a check, cashier’s check, bank draft, traveler’s check, or money order. But what about a debit card payment? In its Motor Vehicle Dealership The Federal Trade Commission (FTC) recently announced an increase in fees for companies to access its “Do-Not-Call” (DNC) Registry. Dealerships are prohibited from calling phone numbers on the DNC Registry for telemarketing. All telemarketers calling consumers in the United States are required to download the numbers on the National DNC Registry to ensure they do not call consumers who have registered their phone numbers. 12

a half year will increase to $31, up from $30. The maximum amount that can be charged to an entity accessing

Q&As, the IRS says that a debit card is not a cash equivalent for reporting purposes. It says a debit card works like a credit card, which is not a cash equivalent, except the customer’s account is charged against existing funds instead of creating a debt to be paid later. For example, if a customer buys a $16,000 car with $9,000 in cash and a $6,000 debit card payment, the dealer does not need to file an 8300. However, if the dealer receives even one cent more than $10,000 in cash or New Charges for 2020 Dealers who want access to only five area codes or fewer from the DNC registry are exempt from the fee requirement but must still register with the FTC. Dealerships accessing six or more area codes must pay the per-area-code access fee when renewing their accounts. The cost for yearly access to a single area code of data will increase to $65, up from $63, and the fee for accessing an additional area code for

all area codes nationwide will increase to $17,765, up from $17,406.

For more information about the FTC’s Telemarketing Sales Rule, visit: https://www.ftc.gov/enforcement/rules /rulemaking-regulatory-reform- proceedings/telemarketing-sales-rule

Debit Card Payments Are Not “Cash Equivalent” for 8300 IRS Form Reporting

cash equivalents, or believes the buyer is structuring the deal specifically to avoid reporting, the dealer would have to file an 8300. Filings for qualifying events are due 15 days after the transaction. Reminder: All customers who were identified on an 8300 form during 2019 must be notified, in writing, of the form’s submission to the IRS no later than January 31, 2020. For more information, including details on filing 8300 forms electronically, visit www.gnyada.com

In August, the Department of Labor (DOL) determined that the Family Medical Leave Act (FMLA) covers an employee’s absence to attend a meeting about their child’s individ- ualized education program (IEP). The DOL said that attending these meetings counts as caring for a family member with a serious health condition, since this includes FMLA Update: IEP Meetings a Reason for Leave 13 Violating the FMLA can be costly, as a Massachusetts employer found. The employer terminated an employee while they were on FMLA leave to recover from surgery because it found out he went on vacation. The court said that recovery could take place while on vacation, since the employee established he didn’t do anything strenuous, just sat on the beach! physical and psychological care. What Should Dealers Do This type of absence would be easy to reject as not covered so make sure all supervisors know that IEP meetings are eligible for FMLA. If you have any questions about FMLA or other types of leave, contact the Association (718.746.5900).

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

The Newsletter • November 2019