Actually, making two payments under $10,000 for the purpose of avoiding the IRS reporting requirements is called "structuring" and it is money laundering. You can get an automatic 10 years in federal prison for doing it. I would definitely not recommend doing it.
The report the dealership is required to make is called a Currency Transaction Report ("CTR"). It basically tells the IRS that you conducted a cash transaction of $10,000 or more. It doesn't necessarily mean they are going to investigate you. It is quite possible they will check your tax return to see if it raises red flags with you paying more than $10,000 in cash for a vehicle, however. If the money is already in a bank account rather than in cash and you write a check to the dealer, the CTR is not required to be filed. That is because it isn't a currency transaction since a check drawn on a US Bank isn't considered currency.
The federal statute covering money laundering is 18 USC 1956 and 18 USC 1957.
2008 Sparkling Graphite 535i
2009 Land Rover LR2
2003 Porsche 911 Turbo (SOLD)
2006 Jet Black 325i (SOLD)
2001 Bullitt Mustang (450rwhp - SOLD)
Last edited by sdorn; 03-04-2006 at 10:38 PM.