WASHINGTON -- The Internal Revenue Service has dropped its challenge to a landmark court ruling in favor of auto dealerships that inadvertently broke federal rules on reporting cash transactions.
Earlier this year, a federal court in Norfolk, Va., ordered the IRS to refund $100,000 in civil penalties it assessed Tysinger Motor Co. The McLean, Va., dealership failed to report four cash transactions of more than $10,000 each.
The court said those violations were unintentional.
The dealership had a formal system to comply with the cash reporting rules, said Michael Charapp, Tysinger's lawyer. Charapp said late last week that the IRS decision could protect other dealerships from penalties if they can prove they sought to follow the rules.
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