Some scam artists have knowingly assisted narcotics traffickers in laundering their ill-gotten gains, while others submit false loan documents to financial institutions to obtain car loans, the agency said.

 

The IRS Criminal Investigation has investigated and recommended to the Department of Justice the prosecution of numerous individuals involved in the automotive sales industry. These investigations vary from tax evasion to employment tax fraud to money laundering conspiracies to violations of the Bank Secrecy Act.

 

The IRS has more than 1,000 open audits of the tax returns of new and used car dealers for a variety of issues.

 

A scheme regarding Form 8300, "Report of Cash Payments Over $10,000 Received in a Trade or Business," has surfaced that describes a "dumping clause" or an "IRS Form 8300 Exemption Certification" that can be filled out by the potential client to exclude the business from filing the required form. The IRS said there is no such clause or certificate.