In the past few years, the IRS has initiated over 400 investigations involving individuals in the sales sector of the automotive industry. Fifteen percent of those cases have involved violations of the currency reporting requirements of the Form 8300.

Automotive dealers are required to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, with the IRS within 15 days of receiving more than $10,000 in cash in one transaction (or two or more related transactions). Form 8300 is an informational return that assists the government in its money-laundering detection efforts.

Special agents of the IRS criminal investigation unit have recommended for prosecution by the Department of Justice numerous individuals in the automotive sales industry. These investigations have focused on a variety of potential infractions, including tax evasion, employment tax fraud, money laundering conspiracies, and violations of the Bank Secrecy Act.

For the first half of fiscal 2003, the U.S. Attorney General’s office filed indictments or information on twice as many individuals for the same time period as Fiscal Year 2002. During the same period, the average sentence jumped from 38 to 55 months.

Clearly, enforcement by the IRS is increasing as its budget has grown, and its efforts have produced many successes.