With the 2017 year-end upon us, this is an extremely busy time for the accounting staff in most dealerships. There are a number of important tasks that must be completed in conjunction with the year-end close. Many of these tasks are deadline driven and predicated upon specific due dates established by various regulatory bodies. At this time, we would like to highlight one task related to cash reporting and Form 8300 compliance.
Generally, any dealership that collects $10,000 in cash and/or cash equivalents in a single or in two or more related transactions must complete a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. The Form 8300 must be filed with the IRS by the 15th day after the date on which the transaction occurred. In addition, dealerships must notify customers in writing that a cash report was filed with the IRS relating to their transaction(s) during the year. The written statement must include the name and address of the dealership, the name and phone number of a contact person, and the total amount of reportable cash received from the individual(s) during the year. The statement must disclose that the information was furnished to the Internal Revenue Service to comply with Form 8300 reporting requirements. The written statement must be remitted to the customer by January 31st of the year following the calendar year in which the cash was received.
We highly recommend that the dealership send the written statement to the customer via certified mail to document the postmark date. A dealer may be subject to civil penalties for failure to file a correct Form 8300 and/or provide a written statement to the customer by the designated due dates.
By Christine Smith and Stephen Bedell of Crowe Horwath LLP. (614) 365-2213
This material is for informational purposes only and should not be construed as financial or legal advice. Please seek guidance specific to your organization from qualified advisers in your jurisdiction.