What is the $10,000 rule for reporting cash transactions?

This post will focus on the $10,000 Rule for reporting cash transactions. The Rule states that any person who receives more than $10,000 in a single cash transaction, or a series of cash transactions, must report the exchange to the IRS.

Does a wire transfer constitute cash for Form 8300 reporting?

A wire transfer does not constitute cash for Form 8300 reporting. Since the remaining cash remitted was below $10,000, the dealer has no 8300 filing requirement. A customer makes weekly payments in cash to a dealership as a lease payment or loan payment on a vehicle. During a 12-month period, these payments total more than $10,000.

What happens if a dealership receives more than $10,000?

A dealership receives greater than $10,000 in cash on day one for the sale of a vehicle. On day three, the deal is cancelled due to an inability to finance the deal. The dealership returns the cash. Is a Form 8300 required? Yes. Once the dealership receives cash exceeding $10,000, a Form 8300 must be filed.