IRS Cash Reporting forms should be sent to buyers by January 31, 2012

IRS Cash Reporting forms should be sent to buyers by January 31, 2012

WANADA wants to remind all members to contact any purchaser for whom you were required to file a Form 8300 by virtue of $10,000 plus cash transactions in 2011. Each purchaser should receive a cash reporting notice by January 31, 2012, stating that the dealership has filed Form 8300 with the Internal Revenue Service. The statement must show the name and address of the dealership, the total amount of reportable cash received and indicate that the information was provided to the IRS. Dealers should also keep a copy of the correspondence in permanent company files.

Below is language a dealer can use to counter the surprise some customers express in being informed of the dealerships cash reporting responsibilities:

We are required by the Internal Revenue Service (IRS) to report transactions involving

more than $10,000 in cash and cash equivalents, under the provisions of 25 U.S.C. 60501.

We have filed a Form 8300 with the IRS on (month, day, 2011), indicating that you provided us

with (dollar amount) in connection with the purchase of your (year, make, model). We wanted you to know that we have complied with this federal reporting requirement.

Thank you again for your business.[/I]

Dealerships should make sure they are using the most recent version of Form 8300.