Study Guide - Cash Reporting
- U.S. currency.
- Foreign currency.
- Personal checks.
- Bank drafts. Personal checks are not considered cash by the IRS.
- The IRS Cash Reporting Rule, enacted to prevent citizens from hiding unreported
income, requires dealerships to complete and file IRS form 8300 when cash receipts exceed the following
- $15,000 A dealer must report cash receipts that exceed $10,000.
- Violation of the IRS Cash Reporting Rule can result in which of the following personal
penalties to the salespersons
- A severe fine.
- A criminal felony charge.
- Jail time if convicted.
- All of the above. If a salesperson violates the IRS Cash Reporting Rule he/she could receive a fine, be charged with a felony and also go to jail.
- What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?
- Helping customers get financing.
- Advising customers on how to put together the purchase.
- Advising customers on how to get around the rule.
- Discussing vehicle structure with the customer. A dealer or salesperson would violate the anti-structuring portion of the IRS Cash Reporting Rule by telling customers how to avoid the rule.