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Auditing/Transaction over $10000

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Expert: - 5/21/2011


Question
Hi Richard,

I sold my car last year for $13k and deposited the cashier check as so. Now I just learned from the newspaper today that I need to file form 8300 with IRS for that transaction. What kind of proper action I should take from this point?


Thank you for your advice first!

Answer
As far as my experience - I would not take any action unless you got a formal request from the IRS. All bank deposits over $10K are reported to the IRS as a way to track possible money laundering and illegal cash flows. You don't have any obligation to report an isolated cash deposit like the one for your car. No action required.

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Richard Stolp

Expertise

Questions about the collection of taxes. I spent six-plus years in Collections with the IRS and spoke with over 20,000 people. Tax levies, liens, Offer in Compromise, unfiled tax returns, payment/filing options.

Experience

Over six years with the IRS in Collections - recently retired. Handled thousands of cases - mostly for regular people that owed anywhere from a few hundred dollars to over $100,000.

Publications
I have a blog at www.sallymae.typepad.com/collections

Education/Credentials
Masters Degree from Iowa State in Ames.

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