AFIP CERTIFICATION EXAM /AFIP
CERIFICATION PREP EXAM 2025/2026 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTION|ALREADY GRADED
A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
The service provider exception to the Privacy Rule allows _______ to contact your customers.
-An independent firm with which you joinly offer financial products and services
-A firm under contract to the selling dealer to conduct surveys of customer satisfaction
Which of the following is an example of a service provider?
A) DMS or CRM provider
B) Billing, mailing, or shredding companies
C) Lender
D) Cleaning services, individual courier firms that disseminate documents that contain NPI to
funding sources and state agencies
E) All of the above
F) All of the above except C
F) All of the above except C
What is the purpose of the IRS/FinCEN Form 8300?
The information contained in the form assists law enforcement in its anti-money laundering
efforts. When businesses comply with the reporting laws they provide authorities with an audit
trail to stop tax evasion, drug dealing, terrorist financing and other criminal activities.
What are the statutes behind the IRS/FinCEN Form 8300?
1|Page
,-The USA Patriot Act of 2001 increased the scope of these related laws to help trace funds used
for terrorism.
-The IRS's 8300 Reporting Rule
Who's required to comply with the rules for filing Form 8300?
Any person in a trade or business who receives more than $10,000 "cash" in a single
"transaction: or in "related transactions" must file Form 8300.
How the IRS defines "transaction" in the rules for filing Form 8300?
A transaction occurs when goods, services or property are sold-you sell a car or someone pays
for body or other repair work.
What is the definition of "cash" in the rules for filing Form 8300?
Currency and coin of the U.S. and any other country. Cash also includes certain money
instruments - a cashier's check, bank draft, traveler's check, or money order - if they have a face
amount of $10,000 or less and are not otherwise excepted from the definition.
What are the exclusions that apply to the definition of "Cash"?
-If the cashier's checks, bank drafts, traveler's checks or money orders you collect have a face
amount of more than $10,000.
-If the item is part of the proceeds of a bank loan.
-If it is received on the payment of a promissory note or an installment contract.
- If you received it in payment for a consumer durable or
collectible.
What are the types of cash payments that trigger the requirement to file Form 8300?
-More than $10,000 in cash
-Received as (1) one lump some of more than $10,000; (2) installment payments that cause the
total cash received within 1 year of the initial payment to total more than $10,000; or (3) other
previously unreportable payments that cause the total cash received within a 12-month period
to total more than $10,000
-Received in the course of your trade or business
2|Page
,-Received from the same buyer
-Received in a single transaction or in related transactions.
Under Form 8300, what do you do if the transaction is terminated?
You will still have to file the Form 8300 if you took in more than $10,000 before the transaction
was terminated. Once the dealership receives the cash, the Form must be filed.
Which sale transactions qualify as "designated reporting transactions"?
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.
d. Can be seen or touched (tangible property)
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.
What are the FinCen 8300 rules regarding related transactions?
-Transactions between a buyer and seller that occur within a 24-hour period are related
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.
When to file a Form 8300
-You must file Form 8300 within 15 days after receiving a payment.
-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.
Do you have to notify buyers whose cash payments are reported? What are the exceptions to
the rule?
3|Page
, Yes. A business must notify its customers of the filing in writing by January 31st of the
subsequent calendar year.
What constitutes a suspicious transaction and how do you report it?
-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 FinCEN Financial Institution Hotline toll free at 1-866-556-
3974.
The significance of reporting the Taxpayer Identification Number accurately and the penalties
for not doing so
-For individuals and sole proprietors, the TIN is a person's Social Security Number.
-For non-resident alien individuals, the TIN is an IRS individual Taxpayer Identification Number
(ITIN)
-Failure to include all required information or inclusion of incorrect information, on Form 8300,
may result in civil or criminal penalties. However, a filer may be able to avoid penalties when the
customer refuses to provide a TIN by showing that its failure to file is reasonable under
circumstances.
What are the penalties for failing to file Form 8300 or for filing false information?
-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).
-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.
-Any person who willfully files a Form 8300 which is false with regard to a material matter may
be fined up to $100,000 ($500,000 in the case of a corporation), and/or imprisoned up to three
years, plus the costs of prosecution.
FinCEN 8300 recordkeeping requirements
A business should keep a copy of every Form 8300 it files, and the required statement it sent to
customers, for at least five years from the date filed.
4|Page
CERIFICATION PREP EXAM 2025/2026 WITH
ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTION|ALREADY GRADED
A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
The service provider exception to the Privacy Rule allows _______ to contact your customers.
-An independent firm with which you joinly offer financial products and services
-A firm under contract to the selling dealer to conduct surveys of customer satisfaction
Which of the following is an example of a service provider?
A) DMS or CRM provider
B) Billing, mailing, or shredding companies
C) Lender
D) Cleaning services, individual courier firms that disseminate documents that contain NPI to
funding sources and state agencies
E) All of the above
F) All of the above except C
F) All of the above except C
What is the purpose of the IRS/FinCEN Form 8300?
The information contained in the form assists law enforcement in its anti-money laundering
efforts. When businesses comply with the reporting laws they provide authorities with an audit
trail to stop tax evasion, drug dealing, terrorist financing and other criminal activities.
What are the statutes behind the IRS/FinCEN Form 8300?
1|Page
,-The USA Patriot Act of 2001 increased the scope of these related laws to help trace funds used
for terrorism.
-The IRS's 8300 Reporting Rule
Who's required to comply with the rules for filing Form 8300?
Any person in a trade or business who receives more than $10,000 "cash" in a single
"transaction: or in "related transactions" must file Form 8300.
How the IRS defines "transaction" in the rules for filing Form 8300?
A transaction occurs when goods, services or property are sold-you sell a car or someone pays
for body or other repair work.
What is the definition of "cash" in the rules for filing Form 8300?
Currency and coin of the U.S. and any other country. Cash also includes certain money
instruments - a cashier's check, bank draft, traveler's check, or money order - if they have a face
amount of $10,000 or less and are not otherwise excepted from the definition.
What are the exclusions that apply to the definition of "Cash"?
-If the cashier's checks, bank drafts, traveler's checks or money orders you collect have a face
amount of more than $10,000.
-If the item is part of the proceeds of a bank loan.
-If it is received on the payment of a promissory note or an installment contract.
- If you received it in payment for a consumer durable or
collectible.
What are the types of cash payments that trigger the requirement to file Form 8300?
-More than $10,000 in cash
-Received as (1) one lump some of more than $10,000; (2) installment payments that cause the
total cash received within 1 year of the initial payment to total more than $10,000; or (3) other
previously unreportable payments that cause the total cash received within a 12-month period
to total more than $10,000
-Received in the course of your trade or business
2|Page
,-Received from the same buyer
-Received in a single transaction or in related transactions.
Under Form 8300, what do you do if the transaction is terminated?
You will still have to file the Form 8300 if you took in more than $10,000 before the transaction
was terminated. Once the dealership receives the cash, the Form must be filed.
Which sale transactions qualify as "designated reporting transactions"?
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.
d. Can be seen or touched (tangible property)
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.
What are the FinCen 8300 rules regarding related transactions?
-Transactions between a buyer and seller that occur within a 24-hour period are related
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.
When to file a Form 8300
-You must file Form 8300 within 15 days after receiving a payment.
-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.
Do you have to notify buyers whose cash payments are reported? What are the exceptions to
the rule?
3|Page
, Yes. A business must notify its customers of the filing in writing by January 31st of the
subsequent calendar year.
What constitutes a suspicious transaction and how do you report it?
-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 FinCEN Financial Institution Hotline toll free at 1-866-556-
3974.
The significance of reporting the Taxpayer Identification Number accurately and the penalties
for not doing so
-For individuals and sole proprietors, the TIN is a person's Social Security Number.
-For non-resident alien individuals, the TIN is an IRS individual Taxpayer Identification Number
(ITIN)
-Failure to include all required information or inclusion of incorrect information, on Form 8300,
may result in civil or criminal penalties. However, a filer may be able to avoid penalties when the
customer refuses to provide a TIN by showing that its failure to file is reasonable under
circumstances.
What are the penalties for failing to file Form 8300 or for filing false information?
-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).
-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.
-Any person who willfully files a Form 8300 which is false with regard to a material matter may
be fined up to $100,000 ($500,000 in the case of a corporation), and/or imprisoned up to three
years, plus the costs of prosecution.
FinCEN 8300 recordkeeping requirements
A business should keep a copy of every Form 8300 it files, and the required statement it sent to
customers, for at least five years from the date filed.
4|Page
