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$10,000 cash was gifted to me by my mother, and I went out and bought a car with the $10,000 cash. The dealership sent me an 8300 form saying they sent it to the IRS, so what is going to happen now? Do I need to talk to your IRS? Am I in trouble, but I have proof and receipts for every transaction

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    Are you laundering money?
    – user253751
    Jul 24, 2023 at 9:08
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    OP, others have covered that this is totally normal, but advice: DO NOT try and get around this form by a couple smaller payments in the future to avoid this form. That is way more suspicious to anyone involved. Jul 24, 2023 at 14:02
  • @user253751: Or perhaps their mother is? Jul 24, 2023 at 17:06

2 Answers 2

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Nothing to worry about (as long as you aren't a criminal or affiliated with someone who is). IRS Form 8300 is a required filing by businesses that receive cash payments in excess of $10,000. It goes to FinCEN (Financial Crimes Enforcement Network), who uses the information to try to prevent money laundering, domestic terrorism, and other financial crimes. To reiterate, this is a required filing, you're not in trouble, and you're not being investigated. I'd be more worried if the amount of cash paid was less than $10,000, because at that point it becomes a discretionary filing the business would make if it feels the transaction was suspicious.

Being contacted by the IRS or FinCEN over this will be very unlikely as long as you don't create a pattern of suspicious activity. One large cash transaction is no big deal.

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    And if they do contact you (unlikely without a pattern of doing this), you just show them where the money came from and you're done. Most audits really are trivial.
    – keshlam
    Jul 23, 2023 at 17:40
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    OP said they paid $10K but the form you linked to says only for payments in excess of $10K. So it was a discretionary filing by the garage then? Jul 24, 2023 at 5:16
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    @RobinWhittleton it's payments that are 10k or more
    – user253751
    Jul 24, 2023 at 9:08
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    "discretionary filing ... if it feels the transaction was suspicious": for example, if you paid 1 cent less than the amount required to trigger a mandatory filing.
    – rghome
    Jul 24, 2023 at 13:43
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    @user71659 also the car dealer doesn't want the IRS to come knocking asking "did you sell this car for precisely $10k (or $9999.99) so you wouldn't have to fill in the form?"
    – user253751
    Jul 25, 2023 at 5:42
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I went out and bought a car with the $10,000 cash. The dealership sent me an 8300 form saying they sent it to the IRS so what is going to happen now do I need to talk to your IRS?

The car dealer was required to fill out this form. You make a large cash purchase. The issue was that you came in with a pile of bills. If you had paid by personal check, cashiers check, or credit/debit card the form would not have to be submitted.

Am I in trouble but I have proof and receipts for every transaction

No you aren't in trouble, though any time a form is submitted somebody looks at it. It is possible that they could follow up for more information. They are worried that people who make large or numerous cash transactions are hiding something.

$10,000 cash was gifted to me by my mother

If she went to the bank and withdrew $10,000 in cash then the bank also submitted a form. Again the government is concerned that the money was being used for illegal purposes.

If you had submitted the cash into your bank account, your bank would have submitted the form, because the government was concerned you were hiding taxable income, or money from illegal transactions.

Your mom could have transferred the money electronically. She could have written a check to you or to the dealership. Neither transfer type would have triggered the form.

but I have proof and receipts for every transaction.

This confuses me. Did she give you cash or not? If she did, then the only transaction would have been when you bought the car.

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    Can I ask what you mean by "only transaction would have been when you bought the car"? I'm not sure if you're using "transaction" as a term of art, but by the informal definition I'm familiar with, I see three transactions here: (1) OP's mom withdraws $10k cash from the bank, (2) OP's mom gives $10k cash to OP, (3) OP buys a car with $10k cash.
    – David Z
    Jul 24, 2023 at 2:01
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    @DavidZ (1) OP's mom would probably have that receipt, and most likely would not have given it to OP. (2) most likely would not have had a receipt. (3) would have had the receipt that mhoran_psprep is expecting. So I agree that it's a bit confusing what OP means by having proof and receipts for every transaction. The only reason OP would have receipts for (1) and (2) is if they were expecting the 8300 form, in which case they wouldn't have posted here.
    – Teepeemm
    Jul 24, 2023 at 2:20
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    @DavidZ His mother may habitually have $10000 lying around or under the mattress. So, no transaction there. She gives it to her son. No paperwork there. The only transaction is when he bought the car. However "receipts for every transaction" is therefore confusing. Jul 24, 2023 at 8:15
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    The mother could have handed the money together with a card saying she gifted it to her son. That would be some kind of proof for this transaction, wouldn't it? Jul 24, 2023 at 16:43
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    "though any time a form is submitted somebody looks at it"—nobody is looking at most of these. They go into a database system, and someone may look at them in the course of an audit or investigation, particularly if there are other red flags or a pattern of suspicious transactions, but a government employee is not generally reviewing every cash payment report personally. Jul 25, 2023 at 4:39

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