Tax Reporting
Tax Reporting Requirements for Bullion Transactions
The information provided herein is for educational purposes only and is not intended to serve as financial or tax advice. Please consult your tax professional for advice regarding your individual financial or tax situation.
There are two circumstances in which precious metals dealers are legally obligated to report consumer transactions to the IRS:
When a consumer sells reportable quantities of specific bullion or coins; and
When a consumer buys goods from a dealer and pays $10,000 or more in cash for the goods.
The former is a tax issue and will be discussed below. The latter is an anti-money laundering issue and is not the subject of this post.
What is a 1099-B IRS Form?
One of the purposes of IRS Form 1099-B is for a Precious Metals dealer to report the proceeds of customer sales to the dealer of any of the Precious Metals from the IRS Reportable Items List. If you have additional questions, please consult a tax professional for details on your specific tax situation.
Why is this form required to be filed?
The 1099-B form is used to report proceeds paid to a non-corporate seller to the IRS. This helps the IRS determine whether individuals selling items as a source of income have accurately reported that income on their tax returns. For specific guidance on your situation, please consult a tax professional.
When is a 1099-B filed?
Dealers are required to file a 1099-B form when a customer sells the minimum quantity of any precious metals product listed on the IRS Reportable Items List. Reporting requirements vary depending on the specific coin or bullion piece(s) sold. For specific guidance on your situation, please consult a tax professional.
What items are IRS-reportable items?
The IRS has specific rules regarding reportable transactions that require a Form 1099-B to be filed. These rules are detailed in the Form 1099-B instructions available on the IRS website. The following are guidelines provided by ICTA related to precious metal sales. Please note that both these guidelines and the IRS rules are subject to change at any time without notice.
