FinCEN GTO #4 Wire Transfers Not Exempt. Covered Period 9/22/17 3/20/18

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1 FinCEN GTO #4 Wire Transfers Not Exempt Covered Period 9/22/17 3/20/18 A Fund Town Hall Webinar Presented September 20, 2017

2 LEGAL EDUCATION DEPARTMENT Attorneys Title Fund Services, LLC Unless otherwise noted, all original material is Copyright 2017 Attorneys' Title Fund Services, LLC (800) Please contact the Education Registrar at (888) regarding this seminar or to register for any other Fund seminars All references herein to title insurance policy forms and endorsements are intended to refer to the policy forms and endorsements issued by Fund members as duly appointed title agents of Old Republic National Title Insurance Company. These materials are for educational use in Fund seminars. They should not be relied on without first considering the law and facts of a matter. Legal documents for others can only be prepared by an attorney after consultation with the client.

3 FinCEN GTO #4 New FinCEN GTO Wires No Longer Excluded From Reporting Requirements, 49 The Fund Concept 101 (September, 2017) FinCEN Geographic Targeting Order, August 22, 2017, U.S. Dept. of the Treasury, Financial Crimes Enforcement Network FIN-2017-A003, Advisory to Financial Institutions and Real Estate Firms and Professionals, August 22, 2017, U.S. Dept. of the Treasury, Financial Crimes Enforcement Network Frequently Asked Questions, August 22, 2017, U.S. Dept. of the Treasury, Financial Crimes Enforcement Network Sample Form 8300, U.S. Dept. of the Treasury, Financial Crimes Enforcement Network Publication 1544, Reporting Cash Payments of Over $10,000, U.S. Dept. of the Treasury, Int. Rev. Svc. (Rev. September 2014) ALTA Covered Transaction Determination Form, July, 2016 Real Estate Geographic Targeting Order, Published August 16, 2016, American Land Title Association (edited September, 2017) FinCEN GTO and FinCEN Form 8300 Requirements (Applicable to GTO effective September 22, 2017), Attorneys Title Fund Services, LLC Town Hall example of completed Form 8300 for fictitious transaction, Attorneys Title Fund Services, LLC Page Number PowerPoint slides Attorneys' Title Fund Services, LLC All Rights Reserved. Duplication Prohibited. These materials are for educational use in Fund Seminars. They should not be relied on without first considering the law and facts of a matter. Legal documents for others can only be prepared by an attorney after consultation with the client.

4 CONCEPT SEPTEMBER 2017 VOL 49 PACE PICKS UP IN FLORIDA BY CHARLES D. NOSTRA, FUND UNDERWRITING COUNSEL Property Assessed Clean Energy (PACE) programs provide an alternative way for residential and commercial property owners to finance certain energy efficiency and wind resistance (i.e., hurricane hardening) improvements through loans secured by financial agreements on par with special assessment liens and paid by a non-ad valorem assessment through the property owner s real property tax bill. Florida s PACE programs were first authorized in 2010 by Sec , F.S., with the generic title [s]upplemental authority for improvements to real property. The statute provides that bonds may be issued by counties, municipalities, dependent special districts under Sec , F.S., and separate legal entities under Sec (7), F.S., to finance the improvements. The repayment of such improvements is then secured by liens paid through non-ad valorem assessments on the property tax bills of the specific property owners who availed themselves of the program. There is no statewide program for PACE; the programs are administered at the local government or regional level. In 2010, the legislature found that energy efficiency and wind resistance property improvements provided a compelling state interest in fulfilling the state s energy efficiency and hurricane mitigation policies. This identified the public purpose necessary to allow Ch. 197, F.S., to be used as a financing mechanism to enable property owners to voluntarily finance the improvements with local government assistance. (Continues on page 104) NEW FINCEN GTO WIRES NO LONGER EX- CLUDED FROM REPORTING REQUIREMENTS Although the previous FinCEN Geographic Targeting Order (GTO) expired on Aug. 22, 2017, another GTO was issued which mandates reporting of transactions closing on and after Sep. 22, The newest GTO, applicable to Miami-Dade, Broward, and Palm Beach Counties, is similar to the former GTO with one significant exception: transactions funded by wire will no longer be excluded from reporting. Covered transactions requiring reporting under the GTO will include the purchase of Miami-Dade, Broward, or Palm Beach County residential property by a corporation, limited liability company, partnership, or other similar business entity without a bank loan and where the purchase price is $1 million or more. Reporting is required for all transactions meeting these criteria regardless of how the closing funds are paid. Trusts of any kind are not included in the definition of legal entities for purposes of the GTO; therefore, reporting of a purchase by a trust is not required. The GTO requires that FinCEN Form 8300 be filed within 30 days of closing. The FinCEN Form 8300 must be submitted to Fund Underwriting Counsel both prior to closing for review and after closing for transmittal to the IRS. Submit forms to FinCENinfo@TheFund.com. The full text of the GTO can be found at com/information-center/pdf/fincen-gto/old-republicnational-title.pdf. Fund Underwriting Counsel can assist with FinCEN-related inquiries and may be contacted by at underwriting@thefund.com or by calling (800) IN THIS ISSUE 2017 Self-Assessment Survey The Catch-22 of Foreign Sellers Title Teasers Part I SM FLORIDA EDITION SEPTEMBER 2017 VOL 49 PAGE 101

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10 FIN-2017-A003 August 22, 2017 Advisory to Financial Institutions and Real Estate Firms and Professionals Drug traffickers, corrupt officials, money launderers, and other criminals seek to exploit real estate transactions to hide their illicit profits, conceal their identities, and launder funds. This Advisory should be shared with: Real Estate Professionals Organization Executives Comptroller/Treasury/ Accounting Departments Compliance Departments The Financial Crimes Enforcement Network (FinCEN) is issuing industry with information on money laundering risks associated with certain real estate transactions. As highlighted by recent Geographic Targeting Orders (GTOs) issued by FinCEN, real estate transactions involving luxury property purchased through shell companies particularly when conducted with cash and no illegal proceeds while masking their identities. 1 Legal Departments certain anti-money laundering obligations and can provide 2 While real estate brokers, escrow agents, title insurers, and other real estate professionals are not required to, FinCEN encourages them to voluntarily report suspicious transactions involving real estate purchases and 3 1. Although FinCEN to date has focused on residential real estate, money laundering can also involve commercial real estate transactions. 2. not intended to include individual buyers and sellers. 3. See 1

11 F I N C E N A D V I S O R Y Money Laundering Risks in the Real Estate Sector Real estate transactions and the real estate market have certain characteristics that make them vulnerable to abuse by illicit actors seeking to launder criminal proceeds. For example, many real estate transactions involve high-value assets, opaque entities, and processes that can limit transparency because of their complexity and diversity. In addition, the real estate market can be 4 their illicit funds. Example: Corruption and Residential Real Estate enforcement information, and real estate deed records, as depicted by the case studies in this advisory, indicates that high-value residential real estate markets are vulnerable to penetration by foreign and domestic criminal organizations and corrupt actors, especially those misusing otherwise legitimate limited liability companies or other legal entities to shield their identities. In addition, (i.e. presenting increased risk. the risks detailed below in mind when identifying and reporting suspicious transactions. 4. Money laundering is a crime orchestrated to conceal the source of illegal proceeds so that the money can be used without detection of its criminal source. Visit for further information. 2

12 F I N C E N A D V I S O R Y Use of Shell Companies Decreases Transparency Criminals launder money to obscure the illicit origin of their funds. To this end, money launderers can use a number of vehicles to reduce the transparency of their transactions. One such vehicle, Most shell companies are formed by individuals and businesses for legitimate purposes, such as to hold stock or assets of another business entity or to facilitate domestic and international currency trades, the individuals that ultimately own or control them (i.e. Criminals abuse this anonymity to mask their identities, involvement in transactions, and origins of An example of abuse of the luxury real estate sector involves current Venezuelan Vice President behalf of, El Aissami. 7 were used to hold real estate. The misuse of shell companies to launder money is a systemic concern for law enforcement and Issue 1 Issue 2 Issue 7 7. See Id 3

13 F I N C E N A D V I S O R Y Use of All-Cash Real Estate Purchases Further Decreases Transparency Criminals can use all-cash purchases to make payments in full for properties and evade scrutiny transactions involving mortgages. All-cash transactions account for nearly one in four residential real estate purchases, totaling hundreds of billions of dollars nationwide, and are particularly exposed to abuse. 11 Many all-cash transactions are routine and legitimate, however, Example: Fraud, Money Laundering, and All-Cash Purchases An example highlighting fraud and money laundering through all-cash transactions involves Keslinke used straw buyers and altered records and documents to purchase real estate with cash 12 FinCEN s Geographic Targeting Orders (GTOs) use of shell companies to engage in all-cash residential real estate transactions. A GTO is an order 13 In this case, FinCEN 14 See. 11. See and Townhouses and Condos. 12. See 13. See 14. See GTOs Involving Certain Real Estate Transactions Frequently Asked Questions FinCEN Renews 4

14 F I N C E N A D V I S O R Y America. Much of these funds were used for payments to various real estate related businesses. associate were associated with a foreign criminal organization involved in narcotics smuggling, money laundering, health care fraud, and the illegal export of automobiles. Review of U.S. Anti-Money Laundering Regulations in the Real Estate Sector and housing government-sponsored enterprises like Fannie Mae and Freddie Mac generally entity customers opening accounts. FinCEN provides substantial guidance and information For additional information, see. 5

15 F I N C E N A D V I S O R Y While FinCEN currently has exempted them from these broader obligations, persons involved They also may be required to annually issued GTOs. insurers, and other real estate professionals can voluntarily report suspicious activity and such estate market from abuse. For example, the National Association of Realtors has issued red becoming a vehicle for money laundering. 21 Mandatory Reporting of Suspicious Activity 22 Voluntary Reporting of Suspicious Activity possible illicit activity and criminals. FinCEN encourages persons involved in real estate transactions. 23 These persons are well-positioned to identify potentially illicit activity as they have access to a more complete view and understanding of the real estate transaction and of See s 21. See for Real Estate Professionals

16 F I N C E N A D V I S O R Y those involved in the transaction. For example, real estate brokers may have greater insight as to the potential purpose for which a property is being purchased or the possible origin of a 24 Real estate brokers, escrow agents, title insurers, and other real estate professionals can identify potential suspicious transactions by reviewing available facts and circumstances. Real estate professionals may determine a transaction is suspicious after evaluating whether assessed value) to be altered. Filing Suspicious Activity Reports (SARs) here. institutions should provide complete and accurate information, including relevant facts in ADVISORY REAL ESTATE to indicate a connection between the suspicious activity being reported and real estate property. 24. See 7

17 F I N C E N A D V I S O R Y For Further Information Additional questions or comments regarding the contents of this advisory should be addressed to the FinCEN Resource Center at Financial institutions wanting to report suspicious transactions that may potentially relate to terrorist activity should call the Financial Institutions Toll-Free Hotline at (866) (7 days a week, 24 hours a day). The purpose of the hotline is to expedite the delivery of this information to law enforcement. Financial institutions should immediately report any imminent combat money laundering and promote national security through the 8

18 FREQUENTLY ASKED QUESTIONS Issued: August 22, 2017 Subject: Geographic Targeting Orders Involving Certain Real Estate Transactions On August 22, 2017, FinCEN issued Geographic Targeting Orders (GTOs) requiring Covered Businesses to collect and report information about certain residential real estate transactions in the following jurisdictions: (1) all boroughs of New York City; (2) Miami-Dade County and the two counties immediately to the north (Broward and Palm Beach); (3) Los Angeles County, California; (4) three counties comprising part of the San Francisco area (San Francisco, San Mateo, and Santa Clara counties); (5) San Diego County, California; (6) the county that includes San Antonio, Texas (Bexar County); and (7) the City and County of Honolulu in Hawaii. As a general matter, FinCEN expects a Covered Business to implement procedures reasonably designed to ensure compliance with the terms of the GTOs, including reasonable due diligence to determine whether it (or its subsidiaries or agents) is involved in a Covered Transaction and to collect and report the required information. In complying with the terms of the GTOs, a Covered Business may reasonably rely on information provided to it by third parties, including other parties involved in Covered Transactions. To assist Covered Businesses in complying with the GTOs, FinCEN is publishing this list of frequently asked questions (FAQs) in response to inquiries FinCEN has received. These FAQs are applicable only to the GTOs and should not be construed to apply to any other FinCEN regulation or order. Terms used but not otherwise defined herein shall have the meaning set forth in the GTOs. For additional questions, please contact the FinCEN Resource Center at (800) ) What does the term residential real property mean? For purposes of the GTOs, residential real property means real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from one to four families. 2) To what extent must a Covered Business verify information about the Beneficial Owner of a Purchaser? The GTOs require a Covered Business to collect and report certain identifying information about the Beneficial Owner(s) of the Purchaser in a Covered Transaction. For purposes of the GTOs, a Beneficial Owner means each individual who, directly or indirectly, owns 25% or more of the equity interests of the Purchaser. The GTOs provide that the Covered Business must obtain and record a copy of the Beneficial Owner s driver s license, passport, or other similar identifying

19 documentation. The Covered Business may reasonably rely on the information provided to it by third parties involved in the Covered Transaction, including the Purchaser or its representatives, in determining whether the individual identified as a Beneficial Owner is in fact a Beneficial Owner. 3) Who is considered a Covered Business s agents for purposes of the GTOs? A Covered Business s agents refers to people or entities that are authorized by the Covered Business, usually through a contractual relationship, to act on its behalf to provide title insurance underwritten by the Covered Business (or its subsidiaries). FinCEN notes that the recordkeeping and reporting requirements under the GTOs are triggered only when a Covered Business (or its subsidiaries or agents) is involved in a Covered Transaction by providing title insurance underwritten by that Covered Business (or its subsidiaries) in connection with the Covered Transaction. FinCEN also recognizes that a person or entity may be an independent agent of a Covered Business, and thus may act on behalf of multiple title insurance companies. A Covered Business is responsible for the recordkeeping and reporting requirements under the GTOs only when such agents are acting on its behalf in connection with a Covered Transaction. 4) What methods of payment are covered under Section II.A.2.iv. of the GTOs? Section II.A.2.iv. of the GTOs, which lists one of the four criteria that triggers a Covered Transaction, provides: Such purchase is made, at least in part, using currency or a cashier s check, a certified check, a traveler s check, a personal check, a business check, or a money order in any form, or a funds transfer. Accordingly, payment of at least part of the purchase price using one of these methods, such as a wire transfer, a cashier s check (sometimes referred to as a bank check, official check, or treasurer s check ), a personal check, a business check, or a certified check, triggers a Covered Transaction, assuming the other three criteria listed in Section II.A.2. are met. With respect to information required to be reported in Field 29 of the Form 8300, the Covered Business should include the total amount of the purchase price, if any, that was paid using currency or a cashier s check, a certified check, a traveler s check, a personal check, a business check, or a money order in any form. With respect to information required to be reported in Field 31, the Covered Business should include the total purchase price, if different from the amount included in Field 29 5) Is there a de minimis exception regarding the methods of payment covered under Section II.A.2.iv. of the GTOs? No. If any part of the purchase price was made using a method of payment specified in Section II.A.2.iv. of the GTOs, then the transaction is considered a Covered Transaction (assuming the 2

20 other three criteria listed in Section II.A.2. are met). FinCEN expects a Covered Business to take reasonable steps to determine whether any part of the purchase price was made using a method of payment specified in Section II.A.2.iv. of the GTOs. FinCEN recognizes that in some instances a small percent of the purchase price of a residential real estate transaction may be held by a third party, such as a real estate agent holding an earnest money deposit. A Covered Business may reasonably rely on information provided to it by such third parties. 6) Who is the individual primarily responsible for representing the Purchaser? The individual primarily responsible for representing the Purchaser means the individual authorized by the entity to enter legally binding contracts on behalf of the entity. 7) How long must a Covered Business retain records relating to compliance with the GTOs? Consistent with the general recordkeeping provisions of the regulations promulgated under the Bank Secrecy Act, a Covered Business must retain all records relating to compliance with the GTOs for at least five years from the last day that the GTOs are effective (including any renewals thereof). 3

21 IRS Form 8300 (Rev. August 2014) Department of the Treasury Internal Revenue Service Report of Cash Payments Over $10,000 Received in a Trade or Business See instructions for definition of cash. Use this form for transactions occurring after August 29, Do not use prior versions after this date. For Privacy Act and Paperwork Reduction Act Notice, see the last page. FinCEN Form 8300 (Rev. August 2014) OMB No Department of the Treasury Financial Crimes Enforcement Network 1 Check appropriate box(es) if: a Amends prior report; b Suspicious transaction. Part I Identity of Individual From Whom the Cash Was Received 2 If more than one individual is involved, check here and see instructions Last name 4 First name 5 M.I. 6 Taxpayer identification number Last Name of Purchaser Representative First Name of Purchaser Rep Address (number, street, and apt. or suite no.) 8 Date of birth... M M D D Y Y Y Y (see instructions) Address of Purchaser Representative City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business Miami F L Identifying a Describe ID Driver's License b Issued by Florida document (ID) c Number Part II Person on Whose Behalf This Transaction Was Conducted 15 If this transaction was conducted on behalf of more than one person, check here and see instructions Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Name of Purchaser (i.e., name of LLC or Corporation) 20 Doing business as (DBA) name (see instructions) Employer identification number Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business Address of Purchaser (i.e., address of LLC or Corporation) 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Miami F L Alien a Describe ID identification (ID) c Number Part III Description of Transaction and Method of Payment 28 Date cash received 29 Total cash received 30 If cash was received in M M D D Y Y Y Y more than one payment, $.00 check here Amount of cash received (in U.S. dollar equivalent) (must equal item 29) (see instructions): a U.S. currency $.00 (Amount in $100 bills or higher $.00 ) b Foreign currency $.00 (Country ) c Cashier s check(s) $ Check Amt.00 d Money order(s) $.00 Issuer's name and serial number e Bank draft(s) $.00 f Traveler s check(s) $.00 b Issued by 31 Total price if different from item Currency/Check Amt $ 1,200, Type of transaction a Personal property purchased f b Real property purchased g c Personal services provided h d Business services provided i e Intangible property purchased j Part IV Business That Received Cash }Issuer s name(s) and serial number(s) of the monetary instrument(s) Debt obligations paid Exchange of cash Escrow or trust funds Bail received by court clerks Other (specify in item 34) 34 Specific description of property or service shown in 33. Give serial or registration number, address, docket number, etc. Address of real property involved in Covered Transaction 35 Name of business that received cash 36 Employer identification number Name of Covered Business Address (number, street, and apt. or suite no.) Social security number Address of Covered Business 38 City 39 State 40 ZIP code 41 Nature of your business Miami F L Title Insurance 42 Under penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true, correct, and complete. Signature 43 Date of signature Title Authorized official M M D D Y Y Y Y 44 Type or print name of contact person 45 Contact telephone number Representative of Covered Business Phone Number of Covered Business IRS Form 8300 (Rev ) Cat. No S FinCEN Form 8300 (Rev )

22 IRS Form 8300 (Rev ) Page 2 FinCEN Form 8300 (Rev ) Multiple Parties (Complete applicable parts below if box 2 or 15 on page 1 is checked.) Part I Continued Complete if box 2 on page 1 is checked 3 Last name 4 First name 5 M.I. 6 Taxpayer identification number 7 Address (number, street, and apt. or suite no.) 8 Date of birth... (see instructions) M M D D Y Y Y Y 9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business 14 Identifying document (ID) a Describe ID c Number b Issued by 3 Last name 4 First name 5 M.I. 6 Taxpayer identification number 7 Address (number, street, and apt. or suite no.) 8 Date of birth... (see instructions) M M D D Y Y Y Y 9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business 14 Identifying document (ID) Part II a Describe ID c Number Continued Complete if box 15 on page 1 is checked b Issued by 16 Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Last Name of Beneficial Owner 1 First Name of Benef. Owner Doing business as (DBA) name (see instructions) Employer identification number 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business Address of Beneficial Owner 1 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Miami F L Alien a Describe ID Driver's License identification (ID) c Number b Issued by 16 Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Last Name of Beneficial Owner 2 (If applicable) First Name of Benef. Owner Doing business as (DBA) name (see instructions) Employer identification number Florida 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business Address of Beneficial Owner 2 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Miami F L Alien a Describe ID Passport b Issued by United States identification (ID) c Number Comments Please use the lines provided below to comment on or clarify any information you entered on any line in Parts I, II, III, and IV REGTO Name, Address, Taxpayer ID of all Members of Purchaser (if the Purchaser is an LLC) Name of Covered Business identified in FinCEN's Geographic Targeting Order (if form is being filed by an agent of such business) IRS Form 8300 (Rev ) FinCEN Form 8300 (Rev )

23 Department of the Treasury Internal Revenue Service Publication 1544 (Rev. September 2014) Cat. No A Reporting Cash Payments of Over $10,000 (Received in a Trade or Business) Future Developments For the latest information about developments related to Publication 1544, such as legislation enacted after it was published, go to What's New Electronic filing. You may be able to file Form 8300 by using FinCEN's Bank Secrecy Act (BSA) Electronic Filing (E-Filing) System. See When, Where, and What To File, later. Introduction If, in a 12-month period, you receive more than $10,000 in cash from one buyer as a result of a transaction in your trade or business, you must report it to the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) on Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. This publication explains why, when, and where to report these cash payments. It also discusses the substantial penalties for not reporting them. Some organizations do not have to file Form 8300, including financial institutions and casinos who must file FinCEN Report 112, BSA Currency Transaction Report (BCTR). They are not discussed in this publication. This publication explains key issues and terms related to Form You should also read the instructions attached to the form. They explain what to enter on each line. Why Report These Payments? Drug dealers and smugglers often use large cash payments to launder money from illegal activities. Laundering means converting dirty or illegally-gained money to clean money. The government can often trace this laundered money through the payments you report. Laws passed by Congress require you to report these payments. Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Get forms and other information faster and easier at IRS.gov Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Special rules for Sep 11, 2014

24 clerks of federal or state courts are discussed later under Bail received by court clerks. However, you do not have to file Form 8300 if the transaction is not related to your trade or business. For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Transaction defined. A transaction occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Person defined. A person includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Exempt organizations, including employee plans, are also persons. However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Foreign transactions. You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Bail received by court clerks. Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: 1. Any federal offense involving a controlled substance, 2. Racketeering, 3. Money laundering, and 4. Any state offense substantially similar to (1), (2), or (3) above. For more information about the rules that apply to court clerks, see Section I-2 of the Income Tax Regulations. What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: 1. Over $10,000, 2. Received as: a. One lump sum of over $10,000, b. Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or c. Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, 3. Received in the course of your trade or business, 4. Received from the same buyer (or agent), and 5. Received in a single transaction or in related transactions (defined later). What Is Cash? Cash is: 1. The coins and currency of the United States (and any other country), and 2. A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in:! CAUTION a. A designated reporting transaction (defined later), or b. Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form Cash may include a cashier's check even if it is called a treasurer's check or bank check. Cash does not include a check drawn on an individual's personal account. A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Report 112. Example 1. You are a coin dealer. Bob Green buys gold coins from you for $13,200. He pays for them with $6,200 in U.S. currency and a cashier's check having a face amount of $7,000. The cashier's check is treated as cash. You have received more than $10,000 cash and must file Form 8300 for this transaction. Example 2. You are a retail jeweler. Mary North buys an item of jewelry from you for $12,000. She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. You do not have to file Form Example 3. You are a boat dealer. Emily Jones buys a boat from you for $16,500. She pays for it with a cashier's check payable to you in the amount of $16,500. The cashier's check is not treated as cash because its face amount is more than $10,000. You do not have to file Form 8300 for this transaction. Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: 1. A consumer durable, such as an automobile or boat. A consumer durable is property, other than land or buildings, that: a. Is suitable for personal use, b. Can reasonably be expected to last at least 1 year under ordinary use, c. Has a sales price of more than $10,000, and d. Can be seen or touched (tangible property). For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. The car is a consumer durable even if you sell it to a buyer who will use it in a business. 2. A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). 3. Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Example. You are a travel agent. Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. He also asks you to book hotel rooms and admission tickets for the group. In payment, he gives you two money orders, each for $6,000. You have received more than $10,000 cash in this designated reporting transaction. You must file Form Retail sale. The term retail sale means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. This includes any sales of items that will be resold. Broker or intermediary. A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Exception for certain bank loans. A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Example. You are a car dealer. Mandy White buys a new car from you for $11,500. She pays you with $2,000 of U.S. currency and a cashier's check for $9,500 payable to you and Page 2 Publication 1544 (September 2014)

25 her. You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. For this reason, the cashier's check is not treated as cash. You do not have to file Form 8300 for the transaction. Exception for certain installment sales. A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). However, this exception applies only if: 1. You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and 2. The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Exception for certain down payment plans. A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. 1. You receive it under a payment plan requiring: a. One or more down payments, and b. Payment of the rest of the purchase price by the date of sale. 2. You receive it more than 60 days before the date of sale. 3. You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Exception for travel and entertainment. A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. 1. You receive it under a payment plan requiring: a. One or more down payments, and b. Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. 2. You receive it more than 60 days before the date on which the final payment is due. 3. You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. If you do not know a person's TIN, you have to ask for it. You may be subject to penalties for an incorrect or missing TIN. There are three types of TINs. 1. The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). 2. The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). An ITIN has nine digits, similar to an SSN. 3. The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Exception. You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: 1. Does not have income effectively connected with the conduct of a U.S. trade or business; 2. Does not have an office or place of business, or a fiscal or paying agent in the United States; 3. Does not file a federal tax return; 4. Does not furnish a withholding certificate described in (e)(2) or (3) or (c)(2)(iv) or (3)(iii) to the extent required under (e)(4)(vii); 5. Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or 6. In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U.S. citizen or resident. What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Because they total $12,000 (more than $10,000), you must file Form More than 24 hours between transactions. Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. For example, you are a travel agent. A client pays you $8,000 in cash for a trip. Two days later, the same client pays you $3,000 more in cash to include another person on the trip. These are related transactions, and you must file Form 8300 to report them. What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Or, you can call the Fin- CEN Financial Institution Hotline toll free at When, Where, and What To File The amount you receive and when you receive it determine when you must file. Generally, you must file Form 8300 within 15 days after receiving a payment. If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. More than one payment. In some transactions, the buyer may arrange to pay you in cash installment payments. If the first payment is more than $10,000, you must file Form 8300 within 15 days. If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. After you file Form 8300, you must start a new count of cash payments received from that buyer. If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Example. On January 10, you receive a cash payment of $11,000. You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. By January 25, you must file a Form 8300 for the $11,000 payment. By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Amending a Report? If you are amending a report, check box 1a at the top of Form Complete the form in its entirety (Parts I-IV) and include the amended information. Do not attach a copy of the original report. Where to file. Mail the form to the address given in the Form 8300 instructions. You may file the form electronically by using FinCEN's BSA E-Filing System. To get more information, visit bsaefiling.fincen.treas.gov. Publication 1544 (September 2014) Page 3

26 Required statement to buyer. You must give a written or electronic statement to each person named on any Form 8300 you must file. You can give the statement electronically only if the recipient agrees to receive it in that format. The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. It must state that you are also reporting this information to the IRS. You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. RECORDS You must keep a copy of every Form 8300 you file for 5 years. Examples Example 1. Pat Brown is the sales manager for Small Town Cars. On January 6, 2015, Jane Smith buys a new car from Pat and pays $18,000 in cash. Pat asks for identification from Jane to get the necessary information to complete Form A filled-in form is shown in this publication. Pat must mail the form to the address shown in the form's instructions or file the form electronically using FinCen's BSA E-Filing System by January 21, He must also send a statement to Jane by January 31, Example 2. Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Pat would have to file a Form 8300 by February 23 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2015, is a Saturday). Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. However, he could report it if he felt it was a suspicious transaction. Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: 1. $25,000, or 2. The amount of cash you received and were required to report (up to $100,000). There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. These dollar amounts are based on Section 3571 of Title 18 of the U.S. Code. The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form Structuring means breaking up a large cash transaction into small cash transactions. How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Free help with your tax return. You can get free help preparing your return nationwide from IRS-certified volunteers. The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS.gov, download the IRS2Go app, or call As part of the TCE program, AARP offers the Tax-Aide counseling program. To find the nearest AARP Tax-Aide site, visit AARP's website at or call For more information on these programs, go to IRS.gov and enter VITA in the search box. Internet. IRS.gov and IRS2Go are ready when you are 24 hours a day, 7 days a week. Download the free IRS2Go app from the itunes app store or from Google Play. Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news to get the latest federal tax news, including information about tax law changes and important IRS programs. Check the status of your 2013 refund with the Where's My Refund? application on IRS.gov or download the IRS2Go app and select the Refund Status option. The IRS issues more than 9 out of 10 refunds in less than 21 days. Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Use the Interactive Tax Assistant (ITA) to research your tax questions. No need to wait on the phone or stand in line. The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. When you reach the response screen, you can print the entire interview and the final response for your records. New subject areas are added on a regular basis. Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS.gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. You can use the IRS Tax Map, to search publications and instructions by topic or keyword. The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. You can also ask the IRS to mail a return or an account transcript to you. Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS.gov or by calling Tax return and tax account transcripts are generally available for the current year and the past three years. Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look up tool for information on your repayments and account balance. Check the status of your amended return using Where's My Amended Return? Go to IRS.gov and enter Where's My Amended Return? in the search box. You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. It can take up to 3 weeks from the date you mailed it to show up in our system. Make a payment using one of several safe and convenient electronic payment options available on IRS.gov. Select the Payment tab on the front page of IRS.gov for more information. Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Figure your income tax withholding with the IRS Withholding Calculator on IRS.gov. Use it if you've had too much or too little withheld, your personal situation has Page 4 Publication 1544 (September 2014)

27 changed, you're starting a new job or you just want to see if you're having the right amount withheld. Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS.gov. Request an Electronic Filing PIN by going to IRS.gov and entering Electronic Filing PIN in the search box. Download forms, instructions and publications, including accessible versions for people with disabilities. Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS.gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. An employee can answer questions about your tax account or help you set up a payment plan. Before you visit, check the Office Locator on IRS.gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. If you have a special need, such as a disability, you can request an appointment. Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Apply for an Employer Identification Number (EIN). Go to IRS.gov and enter Apply for an EIN in the search box. Read the Internal Revenue Code, regulations, or other official guidance. Read Internal Revenue Bulletins. Sign up to receive local and national tax news and more by . Just click on subscriptions above the search box on IRS.gov and choose from a variety of options. Phone. You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Download the free IRS2Go app from the itunes app store or from Google Play. Call to locate the nearest volunteer help site, or you can use the VITA Locator Tool on IRS.gov, or download the IRS2Go app. Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Most VITA and TCE sites offer free electronic filing. Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Through the TCE program, AARP offers the Tax-Aide counseling program; call to find the nearest Tax-Aide location. Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. The IRS issues more than 9 out of 10 refunds in less than 21 days. Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Note, the above information is for our automated hotline. Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Call the Amended Return Hotline, , to check the status of your amended return. You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. It can take up to 3 weeks from the date you mailed it to show up in our system. Call TAX-FORM ( ) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). You should receive your order within 10 business days. Call TeleTax, , to listen to pre-recorded messages covering general and business tax information. If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call Call using TTY/TDD equipment, to ask tax questions or order forms and publications. The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. These individuals can also contact the IRS through relay services such as the Federal Relay Service. Walk-in. You can find a selection of forms, publications and services in-person. Products. You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Services. You can walk in to your local TAC for face-to-face tax help. An employee can answer questions about your tax account or help you set up a payment plan. Before visiting, use the Office Locator tool on IRS.gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Mail. You can send your order for forms, instructions, and publications to the address below. You should receive a response within 10 business days after your request is received. Internal Revenue Service 1201 N. Mitsubishi Motorway Bloomington, IL The Taxpayer Advocate Service Is Here to Help You. The Taxpayer Advocate Service (TAS) is your voice at the IRS. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. You face (or your business is facing) an immediate threat of adverse action. You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Here's why we can help: TAS is an independent organization within the IRS. Our advocates know how to work with the IRS. Our services are free and tailored to meet your needs. We have offices in every state, the District of Columbia, and Puerto Rico. How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at How else does TAS help taxpayers? TAS also works to resolve large-scale, systemic problems that affect many taxpayers. If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Low Income Taxpayer Clinics. Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. Publication 1544 (September 2014) Page 5

28 IRS Form 8300 (Rev. August 2014) Department of the Treasury Internal Revenue Service Report of Cash Payments Over $10,000 Received in a Trade or Business See instructions for definition of cash. Use this form for transactions occurring after August 29, Do not use prior versions after this date. For Privacy Act and Paperwork Reduction Act Notice, see the last page. FinCEN Form 8300 (Rev. August 2014) OMB No Department of the Treasury Financial Crimes Enforcement Network 1 Check appropriate box(es) if: a Amends prior report; b Suspicious transaction. Part I Identity of Individual From Whom the Cash Was Received 2 If more than one individual is involved, check here and see instructions Last name 4 First name 5 M.I. 6 Taxpayer identification number Smith Jane A Address (number, street, and apt. or suite no.) 8 Date of birth... M M D D Y Y Y Y 100 Main Street (see instructions) City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business Hometown P A Cosmetic Distributor 14 Identifying a Describe ID Driver s License b Issued by document (ID) c Number PA Part II Person on Whose Behalf This Transaction Was Conducted 15 If this transaction was conducted on behalf of more than one person, check here and see instructions Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number 20 Doing business as (DBA) name (see instructions) Employer identification number 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business 23 City 24 State 25 ZIP code 26 Country (if not U.S.) 27 Alien a Describe ID identification (ID) c Number Part III Description of Transaction and Method of Payment 28 Date cash received 29 Total cash received 30 If cash was received in M M D D Y Y Y Y more than one payment, $ 18, check here Amount of cash received (in U.S. dollar equivalent) (must equal item 29) (see instructions): a U.S. currency $ 18, (Amount in $100 bills or higher $.00 ) b Foreign currency $.00 (Country ) c Cashier s check(s) $.00 d Money order(s) $.00 e Bank draft(s) $.00 } f Traveler s check(s) $.00 b Issued by Issuer s name(s) and serial number(s) of the monetary instrument(s) 31 Total price if different from item 29 $ Type of transaction 34 Specific description of property or service shown in a Personal property purchased f Debt obligations paid 33. Give serial or registration number, address, docket b Real property purchased g Exchange of cash number, etc. Go - Fast c Personal services provided h Escrow or trust funds 4 - door sedan serial no xx - d Business services provided i Bail received by court clerks ABCDEFG e Intangible property purchased j Other (specify in item 34) Part IV Business That Received Cash 35 Name of business that received cash 36 Employer identification number Small Town Cars Address (number, street, and apt. or suite no.) Social security number 5000 Industrial Avenue 38 City 39 State 40 ZIP code 41 Nature of your business Hometown P A Car Dealership 42 Under penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true, correct, and complete. Signature 43 Date of signature Sales Manager Title Authorized official M M D D Y Y Y Y 44 Type or print name of contact person 45 Contact telephone number Pat Brown Pat Brown IRS Form 8300 (Rev ) Cat. No S FinCEN Form 8300 (Rev ) Page 6 Publication 1544 (September 2014)

29 Title Company Information Covered Transaction Determination A Covered Transaction is one in which you answer YES to all five questions below. If you answer a question with a NO, then the transaction is not a Covered Transaction. Note: If a No answer is given to any of questions it is not necessary to answer the remaining questions and you may skip to the Question 6b. Note: Only consider loans made by financial institutions with anti money laundering programs such as a bank, credit union or mortgage company. This does not include private or seller financing. If yes indicate the type of entity 6. Note: Payments to a party representing the purchaser or seller (i.e. an attorney, real estate agent or settlement agent) using one of the listed forms of payment require a Yes answer. Form 8300 Submission Required No Form 8300 Submission Required Copyright American Land Title Association. All rights reserved. The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

30 FinCEN GTO and FinCEN Form 8300 Requirements (Applicable to GTO effective September 22, 2017) To: (Member name) PLEASE BE ADVISED that the specifics of this transaction require compliance with the Geographic Targeting Order (GTO) issued by the Financial Crimes Enforcement Network (FinCEN) on August 22, 2017 if your transaction meets ALL the following criteria: 1. The subject property is residential real property* located in Miami-Dade, Broward or Palm Beach County; 2. The total purchase price is at least $1,000,000; 3. The purchase is by a legal entity (a corporation, LLC, partnership or other similar business entity); 4. Financing, if any, is provided by a private lender, seller or other mortgagee that does not have a federal requirement to maintain an anti-money laundering policy; 5. Settlement funds, at least in part, will be in the form of currency, a cashier s check, a certified check, a traveler s check, a personal check, a business check, or a money order in any form; or a funds transfer; AND 6. Settlement of the transaction will occur on or after September 22, 2017 and before March 20, 2018 (unless the GTO period is extended). You are required to retain evidence of the covered transaction for a period of five years from March 20, 2018 unless this order is extended. See GTO for specifics concerning retention of records. If all above criteria (1-6) apply to your transaction, then you must take the steps outlined on the following pages in order to comply with the GTO and commitment. Thank you for assisting with compliance with this GTO. * For purposes of the GTOs, residential real property means real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from one to four families. (See FinCEN Frequently Asked Questions, August 22, 2017)

31 Steps to Comply with The Fund s Requirements for Transactions Subject to Reporting Under the August 22, 2017 FinCEN GTO 1. Ascertain the name, address, TIN, date of birth, and the nature of the occupation, profession, or business of the individual primarily responsible for representing the purchasing entity. a. Obtain and keep a legible copy of this individual s driver s license, passport, or other similar identifying documentation. 2. Ascertain the exact name of the purchasing entity (name as shown on tax filings), its physical address, and it s TIN or EIN. 3. Ascertain the name, address, TIN or EIN, and the nature of the occupation, profession, or business of each individual who, directly or indirectly, owns 25% or more of the equity interests of the purchasing entity, ( Beneficial Owner ) including LLCs. a. Obtain and keep a legible copy of each individual s driver s license, passport, or other similar identifying documentation. 4. If a purchasing entity is a limited liability company, ascertain the name, address and TIN of all members. 5. Complete FinCEN Form 8300 according to its instructions, when applicable, and as follows: a. In Part I, fill in the form with the information gathered in Step #1 b. In Part II i. Check the box on field 15, because more than one person or entity will always need to be identified in this Part II ii. Fill in the form with the information gathered in Step #2 iii. On page two of the form, Part II is continued - fill with the information gathered in Step #3 (if more than two, provide same information about them in the Comments section) iv. In the Comments on bottom of page two enter REGTO (all CAPS); if an LLC is the purchaser, the names, addresses and TINs for all members of the LLC; and any comments or clarifications on any entry made on any line in Parts I, II, III, and

32 IV. (For example, to explain a TIN or EIN field left blank or where more than two individuals need to be identified). c. In Part III i. Enter the closing date in field 28 (not the date funds were received as suggested by the Form 8300 instruction!) ii. Enter in field 29 the total amount of Settlement Funds received in the form of currency, cashier s checks, certified checks, traveler s checks, personal checks, business checks, money orders, or wire transfers (identify them in field 32 using 32c for personal and business checks; and wire transfers) iii. Fill in the purchase price in field 31(even if not different from field 29 contrary to the Form 8300 instruction!); property address in field 34; and complete every other field in this section for which you have relevant information. Note: Some of the information required for Part III, may not be available until settlement. As a condition of closing an insured transaction requiring a form 8300, you are required to submit the form completed to the best of your ability to a Fund underwriting counsel for approval. You may contact underwriting counsel for approval at (800) , or underwriting@thefund.com. You will be asked to forward any relevant documentation establishing the Beneficial Owner(s) and all members of LLCs. d. In Part IV fill in the information about your business. 6. Fund Underwriting Counsel will contact you for review and provide approval of the substantially completed form Your approval will serve as authorization to remove the FinCEN requirement on your commitment at settlement on the condition that you complete, sign and submit the form 8300 by to FinCENinfo@thefund.com within one business day of closing. A fillable FinCEN Form 8300 with instructions may be downloaded using the following hyperlink:

33 IRS Form 8300 (Rev. August 2014) Department of the Treasury Internal Revenue Service Report of Cash Payments Over $10,000 Received in a Trade or Business See instructions for definition of cash. Use this form for transactions occurring after August 29, Do not use prior versions after this date. For Privacy Act and Paperwork Reduction Act Notice, see the last page. FinCEN Form 8300 (Rev. August 2014) OMB No Department of the Treasury Financial Crimes Enforcement Network 1 Check appropriate box(es) if: a Amends prior report; b Suspicious transaction. Part I Identity of Individual From Whom the Cash Was Received 2 If more than one individual is involved, check here and see instructions Last name 4 First name 5 M.I. 6 Taxpayer identification number Rasta Robert X Address (number, street, and apt. or suite no.) 8 Date of birth... M M D D Y Y Y Y (see instructions) 17 Marley Harbor Drive City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business Kingston 19 Jamaica, West Indies Laundry and Dry Cleaning 14 Identifying a Describe ID Passport b Issued by Diplomatic Mission document (ID) c Number XMJ Part II Person on Whose Behalf This Transaction Was Conducted 15 If this transaction was conducted on behalf of more than one person, check here and see instructions Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Rasta Investments LLC 20 Doing business as (DBA) name (see instructions) Employer identification number 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business 13 Marley Harbor Drive Ste. M Laundry and Dry Cleaning 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Kingston 19 Jamaica, West Indies 27 Alien a Describe ID Passport b Issued by Diplomatic Mission identification (ID) c Number XMJ Part III Description of Transaction and Method of Payment 28 Date cash received 29 Total cash received Total price if different from If cash was received in M M D D Y Y Y Y item 29 more than one payment, $ 876, check here... $ 1,000, Amount of cash received (in U.S. dollar equivalent) (must equal item 29) (see instructions): a U.S. currency $ (Amount in $100 bills or higher $ ) b Foreign currency $.00 (Country ) c Cashier s check(s) $ 876, }Issuer s name(s) and serial number(s) of the monetary instrument(s) d Money order(s) $.00 Fair Island Bank, N.A. wire transfer # ($856,000.00) e Bank draft(s) $.00 Rasta Investments, LLC Check #1001 ($20,000) f Traveler s check(s) $ Type of transaction 34 Specific description of property or service shown in a Personal property purchased f Debt obligations paid 33. Give serial or registration number, address, docket b Real property purchased g Exchange of cash number, etc. 602 SW 29 Road, Miami, FL c Personal services provided h Escrow or trust funds d Business services provided i Bail received by court clerks e Intangible property purchased j Other (specify in item 34) Part IV Business That Received Cash 35 Name of business that received cash 36 Employer identification number Roh, Roh, & Bote LLP Address (number, street, and apt. or suite no.) Social security number 2929 SW 3rd Avenue, Suite P City 39 State 40 ZIP code 41 Nature of your business Miami F L Attorney 42 Under penalties of perjury, I declare that to the best of my knowledge the information I have furnished above is true, correct, and complete. Signature 43 Date of signature Title Authorized official M M D D Y Y Y Y 44 Type or print name of contact person 45 Contact telephone number IRS Form 8300 (Rev ) Cat. No S FinCEN Form 8300 (Rev )

34 IRS Form 8300 (Rev ) Page 2 FinCEN Form 8300 (Rev ) Multiple Parties (Complete applicable parts below if box 2 or 15 on page 1 is checked.) Part I Continued Complete if box 2 on page 1 is checked 3 Last name 4 First name 5 M.I. 6 Taxpayer identification number 7 Address (number, street, and apt. or suite no.) 8 Date of birth... (see instructions) M M D D Y Y Y Y 9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business 14 Identifying document (ID) a Describe ID c Number b Issued by 3 Last name 4 First name 5 M.I. 6 Taxpayer identification number 7 Address (number, street, and apt. or suite no.) 8 Date of birth... (see instructions) M M D D Y Y Y Y 9 City 10 State 11 ZIP code 12 Country (if not U.S.) 13 Occupation, profession, or business 14 Identifying document (ID) Part II a Describe ID c Number Continued Complete if box 15 on page 1 is checked b Issued by 16 Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Rasta Bobbie J Doing business as (DBA) name (see instructions) Employer identification number 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business 17 Marley Harbor Drive Laundry and Dry Cleaning 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Kingston 27 Alien identification (ID) a Describe ID c Number Passport XMJ Jamaica, West Indies b Issued by Diplomatic Mission 16 Individual s last name or organization s name 17 First name 18 M.I. 19 Taxpayer identification number Rasta Robert X Doing business as (DBA) name (see instructions) Employer identification number 21 Address (number, street, and apt. or suite no.) 22 Occupation, profession, or business 17 Marley Harbor Drive Laundry and Dry Cleaning 23 City 24 State 25 ZIP code 26 Country (if not U.S.) Kingston 27 Alien identification (ID) a Describe ID Passport Jamaica, West Indies b Issued by Diplomatic Mission c Number XMK Comments Please use the lines provided below to comment on or clarify any information you entered on any line in Parts I, II, III, and IV REGTO Rasta Investments, LLC is not required to provide TIN as it does not have an office or place of business, or a fiscal or paying agent in the U.S. Robert X. Rasta and Bobbie Jo Rasta are all the members of Rasta Investments, LLC. and their names, addresses and TINs are described in Part II above. IRS Form 8300 (Rev ) FinCEN Form 8300 (Rev )

35 9/20/2017 FinCEN GTO #4 Wire Transfers Not Exempt Covered Period 9/22/17 3/20/18 Town Hall Panel Geographic Targeting Order #4 Bob Rohan, Regulatory Compliance Counsel, Attorneys Title Fund Services, LLC Connie Clark, Associate Underwriting Manager, Attorneys Title Fund Services, LLC Melissa Scaletta, VP, Chief Underwriting Counsel, Attorneys Title Fund Services, LLC 2

36 9/20/2017 GTO timetable GTO #1 (Miami-Dade only) March 1, 2016 August 27, 2016 Personal, business checks and wires excluded GTO #2 (Miami-Dade, Broward, Palm Beach) August 28, 2016 February 23, 2017 Only wire transfers excluded GTO #3 (Miami-Dade, Broward, Palm Beach) February 24, 2017 August 22, 2017 Renewal of GTO #2 (wires excluded) GTO #4 (Miami-Dade, Broward, Palm Beach) September 22, 2017 March 20, 2018 No exclusion for funds transfers png Covered transaction Purchase price $1M or more Currency, check (cashier s, certified, traveler s, personal or business), money order, or funds transfer Residential (1-4 family) in covered county Purchaser not an individual or trust No bank loan ( external financing ) Title policy to be issued 4

37 9/20/2017 Covered business Underwriter providing title insurance products in Miami-Dade, Broward or Palm Beach counties Old Republic National Title Insurance Company All subsidiaries and agents Civil and criminal penalties for noncompliance One report for each covered transaction Submitted by either underwriter or agent Member will prepare ORNTIC will file 5 Transaction checklist 29 6

38 9/20/2017 Resources Resources

39 9/20/2017 Resources Frequently asked questions What is residential real property? Property designed principally for the occupancy of from one to four families including individual units of condominiums and cooperatives If more than one county, focus on the residential status of the portion located in the covered county No exception for commercial or business purpose purchases of residential property 10

40 9/20/2017 Frequently asked questions If purchase price less than $1M, but cash to close exceeds $1M because of closing costs is transaction reportable? No. Additional costs do not trigger filing 11 Frequently asked questions Is a trust a legal entity? Not for purposes of the GTOs Is private or seller financing considered external financing? No. External financing refers to lenders who are subject to federal requirements to maintain antimoney laundering policies 12

41 9/20/2017 Fund branch products If title order implicates FinCEN, product will include additional Schedule B-I requirement Gather supporting documents Prepare Form 8300 to best of your ability Submit for review ASAP and prior to closing or If member determines transaction exempt member may delete requirement Fund Underwriting Counsel consultation optional 13 Member products Transactions of $1M or more require Fund Underwriting Counsel consultation or When seeking approval: If transaction appears exempt be prepared to discuss; or Prepare and provide substantially completed Form 8300 along with supporting documents 14

42 9/20/2017 When filing required Branch and member products Prior to closing: Substantially complete Form 8300 Copies of identification documents First business day after closing: Forward Form 8300 to Member name and number in subject line of 15 Transaction change events Branch and member products If key element changes confer with Underwriting Counsel Transaction becomes exempt Transaction becomes reportable Examples: Purchase price changes Lender financing abandoned or added Identity of purchaser changes 16

43 9/20/2017 IRS Form 8300 / FinCEN Form 8300 GTO has instructions for certain fields in the form Form 8300 has instructions for all fields When instructions conflict, GTO instructions prevail Date of closing vs. date funds received Definition of cash Comments section requirements FinCEN Form 8300 (Sample) 21 18

44 9/20/ Substantially complete Form 8300 Obtain copy of identifying document (passport) Send to 19 Always check the box in #15! If not required to provide TIN in #19 complete #27 instead and explain in Comments If required, get one! 20

45 9/20/2017 Part II (continued on page two) Individual has more than 25% ownership of LLC 21 Part II (page two) More than 25% ownership of LLC If additional owners, disclose in Comments 22

46 9/20/2017 Provide all preliminary information you have for review by Fund Underwriting Counsel 23 Information about you as settlement agent 24

47 9/20/2017 REGTO = Reference; Geographic Targeting Order Lack of TIN on page one explained All members of LLC identified 25 Complete Part III after closing adding any additional information (e.g. cash received and identification of it) Forward to FinCENinfo@thefund.com within one business day following closing 26

48 9/20/ Retention of records The Covered Business must: (1) retain all records relating to compliance with this Order for a period of five years from the last day that this Order is effective (including any renewals of this Order); (2) store such records in a manner accessible within a reasonable period of time; and (3) make such records available to FinCEN or any other appropriate law enforcement or regulatory agency, upon request. 28