IRS Cash Reporting Requirements Reminder
In the last week, we have received three calls from three different dealers who have been contacted by the IRS to inform the dealer that they are conducting an investigation on their business specifically to determine if the appropriate procedure was followed with respect to cash reporting requirements, 8300 form usage and to make sure there isn’t money laundering going on. Whenever the IRS contacts a dealer about anything, this is a big deal and can be serious. Fines for non-compliance can be staggering and could land you in jail if convicted of helping to structure a car deal so as to avoid the cash reporting requirement. Be careful and be transparent. When you deposit cash in your bank account, there are triggers that will alert the IRS of unusual cash deposits.
