As in past years, the Internal Revenue Service mandates that any customer who was identified on a Form 8300 that was submitted to the government in 2020 must be notified in writing by January 31. The IRS has a list of requirements for notification compliance, which you may view here.
In the notice, dealers are required to notify customers of the IRS requirement that all cash transactions of $10,000 or more be reported. The letter must include the dealership’s name and address (if that information is on a business’ formal letterhead, then that suffices), and also the date the Form 8300 was submitted. It must also include the make, model year, and VIN number of the vehicle involved in the transaction.
For more information on Form 8300 rules and the process for reporting large cash transactions to the government, please click here. Please also note that businesses have been able, since 2012, to file 8300s electronically, using the U.S. Treasury Department’s online portal. Please click here for more information, and to access the filing platform.
We encourage you to review all notices with your legal counsel, to retain a copy of each customer notification for your records, and to also diligently review all your 2020 financial records to ensure that all large cash transactions are being reported in compliance with federal law.Download Bulletin PDF