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HOT TOPICS
2015 GNYADA Membership Directory
70
SEND CASH REPORTING/FORM 8300 LETTERS
When customers pay your dealership for purchases with
more than
$10,000 cash or “cash equivalents”, you are
required to file Form 8300 with the IRS. Dealers must also notify those customers with regard to whom a formwas
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.
To assist you to comply with the cash reporting requirements, 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