The IRS and FinCen require Form 8300 be filed if a trade or business receives more than $10,000 cash/cash equivalent monetary instruments in one or more related transactions, in a 12 month-period.. The Form 8300 must be filed within 15 days of receiving more than $10,000 cash/cash equivalent monetary instruments. This may includes multiple transactions otherwise not related, if they occur in a 24 hour time period.

The buyer must be notified that a Form 8300 is being filed through a written statement. The information contained on the statement must include the name and phone number of a contact person and the total amount of cash that the seller has received during the year. The Customer Notification Letter must also state that this information has been submitted to the IRS in regards to filing Form 8300.

The seller must mail Customer Notification Letters to each person reported on Form 8300 no later than January 31 of the subsequent year.  The dealership should keep copies of filed Forms 8300 and Customer Notification Letters for a period of 5 years.

It is important to note that the IRS has become increasingly proactive regarding individuals and businesses that attempt to structure transactions to avoid filing of Form 8300.  Illegal structuring is a felony that can bring severe penalties both to the individual and the dealership involved.

The civil penalty for intentional disregard or corporate indifference for not filing a Form 8300 with the IRS is the greater of $25,000 or the amount involved in the transaction, plus10% for not submitting the Customer Notification Letter. The IRS is becoming increasingly more proactive in assessing these penalties since 9/11.  It is expected even more stringent requirements and penalties will be imposed in the near future as auto dealership requirements under the USA Patriot Act are defined and passed into law.

Criminal penalties for money laundering offenses can range from imprisonment of responsible individuals to forfeiture of the dealership to the United States Government.

At CTMS, we understand that dealing with Form 8300/Anti-Money Laundering requirements can be a difficult and arduous process. Many clients have questions about what are considered reportable Form 8300 cash transactions, illegal structuring, money laundering, willful blindness, and undercover government stings.

These questions and many others can be answering through our training service or direct consulting using our Catch the Cash Training Academy or by contacting us directly.