Study Guide - Cash Reporting
1. The IRS definition of "cash" does not include
A. U.S. currency.
B. Foreign currency.
C. Personal checks.
D. Bank drafts.
Personal checks are not considered cash by the IRS.
2. 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 dollar amount
A. $ 5,000.
B. $ 8,300.
C. $10,000.
D. $15,000.
A dealer must report cash receipts that exceed $10,000.
3. Violation of the IRS Cash Reporting Rule can result in which of the following personal penalties to the salespersons
A. A severe fine.
B. A criminal felony charge.
C. Jail time if convicted.
D. 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.
4. What does the anti-structuring provision of the IRS Cash Reporting Rule prohibit?
A. Helping customers get financing.
B. Advising customers on how to put together the purchase.
C. Advising customers on how to get around the rule.
D. 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.
