Pub. 18 2019-2020 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 1 , 2 0 2 0 28 new jersey auto retailer Report of Cash Payments Over $10,000 in a Trade or Business BY LOU YOUNG Since 1985, the IRS has required retail businesses to file a Form 8300 for any cash transactions over $10,000. Today, this continues to be a controversial IRS form that keeps dealer- ships on their toes. Accountants continue to see a bump in Form 8300 compliance audits in the automotive retailing sector. Over the past few years, many businesses have faced increased audits and enforce- ment of these money laundering and cash reporting statutes. And still, some business owners and employees are unaware of the potential liability created by these laws. The IRS has had their hands full during the past few months conducting audits that deal specifically with the preparation and filing of IRS/FinCEN Form 8300, report of cash payments over $10,000 in a trade or business. Local IRS offices will contact a dealership by mail requesting that they make certain records available, including cash receipts, journals, bank deposit slips and copies of the Form 8300 that have been filed for a partic- ular year under audit. During the audit, at the initial meeting, the agent will interview the taxpayer to better understand the various internal controls in place surrounding the Form 8300 process and also to gain a better understanding of the taxpayer’s business. In general, when speaking of cash reporting regulations, they are simple in nature. They require a business that receives more than $10,000 in one transaction or a series of related transac- tions to file a Form 8300 with the IRS. The report must be filed within fifteen days after the cash was received. You may be asking, what does cash include? Cash includes the coins and currency of the United States and foreign currency, and may also include cashier’s checks, bank drafts, traveler’s checks and money orders with a face value of $10,000 or less in a designated reported transaction. Dealerships are one of