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If I went to a dealership to purchase a car and put $9500 down cash, and girlfriend gave me a check $8000 totaling $17,500 to go toward the down payment, will the dealership have to file the 8300 tax form?

(Form 8300 is when a business receives more than $10,000 in cash.)

If so, is that a problem?

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    What country are you asking about? What's the "8300 tax form"?
    – littleadv
    Mar 22, 2023 at 16:24
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    Also, what does "flagged" mean? (Please edit your question to clarify the issues identified in these comments - don't reply in comments.) Mar 22, 2023 at 16:30
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    Please edit your old question to add detail, instead of asking a new one (but you would need more detail than that the person was your girlfriend).
    – TripeHound
    Mar 22, 2023 at 16:32
  • I assume you are in the US and you're talking about IRS Form 8300. Did you put down cash? Or did you write the dealer a $9500 check? Did your girlfriend give you a check to pay you back for part of the down payment? Did she give the dealer a check to bring your total down payment to $17,500? Or something else? Mar 22, 2023 at 16:32
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    As a side note - browse some of the questions on this site about cosigning or buying cars for others. Don't co-sign unless you're prepared to pay the debt completely, and get your name on the title at the least. Co-signers are just as responsible for the debt. Don't trust the car dealer to set up the sale in your best interest.
    – D Stanley
    Mar 22, 2023 at 16:37

1 Answer 1

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IRS Form 8300 is a form that a business (the car dealer in this case) must fill out if they receive more than $10,000 in cash in one transaction or in multiple related transactions. The dealer may fill out this form for transactions that are less than $10,000 if they are potentially suspicious.

If we're talking about an $8000 check and $9500 in cash, that wouldn't require the dealer to fill out the form. But it would certainly tend to look suspicious that you were trying to arrange things so that your transaction was just below the mandatory reporting threshold. I'd certainly tell the dealer that it would be prudent to file a Form 8300 for this transaction if they asked me.

You shouldn't care whether the dealer files Form 8300. It's no work for you. And unless you're hiding income from the IRS, it shouldn't raise any red flags. The IRS may investigate if what you're reporting on tax forms and what banks and others are reporting don't make sense (i.e. someone with $30,000 in reported income making multiple $15,000 cash transactions over the course of a year).

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