Please note the following as it relates to the IRS 8300 procedures if the Suspicious Activity Box is checked – the form is being filed voluntarily. (The dollar amount received in cash and / or by a qualifying instrument(s) does not exceed $10,000.)
A suspicious transaction is a transaction in which it appears that a person is attempting to cause the Form 8300 to not be filed, or to file a false or incomplete form.
- The customer is not informed that the form is being filed.
- In the course of completing the form, any available information that will help identify the customer should be recorded on the form. In this case, recording a Driver’s License Number or Passport Number would be permitted.
- Collecting the customer’s Social Security Number, Individual Taxpayer Identification Number, or Employer Number would be ideal, but only if collecting this information will not alert the customer that a Form 8300 will be filed.
- In those instances, where a form is to be filed voluntarily, Box 1 b the Suspicious transaction box is checked, without alerting the customer; a manager should be consulted regarding the company policy if a form is to be filed voluntarily.
- If the Suspicious transaction box is checked, the dealer does not notify the customer in writing that a form has been filed. (If the letter is sent, the dealer could receive a fine.)
- There are criminal penalties that can be levied on the dealer, F&I person and the customer in situations in which action is taken to not file, or to file a false or incomplete form.
AFIP Form 8300 Curriculum Change Clarifications
- AFIP operates under the legal guidance of qualified attorneys, principally Hudson Cook. However, AFIP also consults specialists. As it relates to the Form 8300, a lawyer who is a CPA holding a Master’s Degree in tax was queried. As was ostensibly an acceptable practice at the time, if a qualifying Taxpayer Identification Number could not be produced, a Driver’s License Number or Passport Number – a government issued ID with a photo – could be recorded on the form.Recently, this practice was questioned by a certification candidate. Upon consulting an online resource, I learned that the text addressing this policy was darkly shaded with a line drawn through the wording. Clearly this policy was no longer applicable.
To affirm, I retained a CPA to investigate the situation. Not only was the previous practice no longer applicable, an emphasis has been placed on the correct and timely posting of either a SSN, Individual Taxpayer Identification Number or Employer Number on the form. Hence, the alert in the latest AFIP News online communiqué.
- A Driver’s License or Passport Number – or other identifying documents – can be recorded on line 27 of the current form in lieu of a TIN if the individual or organization meets the standards of a nonresident alien or foreign organization.
- If two or more individuals are conducting the transaction, the information found on a Driver’s License, or Passport or other form of acceptable identification can be used to identify and verify the names and addresses of these people – but is not recorded on the form.
- Detailed instructions regarding the use of the IRS Form 8300 / FinCEN Form 8300 are available online and can be printed out along with a copy of the Form.
- Note, your dealership may have established specific policies governing the use of the cash reporting form. If you are unsure of what steps should be taken, consult with dealer management prior to completing the form – ideally while the customer or customers are still in the store and the transaction has not been consummated.