While interpretations may vary from company to company, Independent Living Bullion does not report the purchase of metals, with one extremely rare exception. For a disclosure requirement to be triggered, BOTH of the following conditions would have to be met:
- The transaction is (or related transactions are) larger than $10,000 in size, AND
Payment is also made using actual cash (i.e. Federal Reserve notes and U.S. coins) or with two or more cash instruments (defined as money orders, cashier's checks, or traveler's checks) which, individually, are $10,000 or less but when totaled together equal more than $10,000. Personal checks, debits, bank wires, and credit card payments are NOT considered cash or cash instruments, and, therefore, purchases using them do not trigger disclosure regardless of their amount(s).
The IRS disclosure document involved is called Form 8300, and it's applicable to all cash transactions in the broad U.S. economy meeting the above conditions – not just precious metals transactions. To date, Independent Living Bullion has only encountered one situation where such a form must be filed.
Likewise, we must report the SALE of your precious metals only in extremely rare circumstances: Of all retail silver products, only pre-1965 "junk" silver coins are arguably subject to reporting on IRS Form 1099B, but only in quantities of $10,000 face value or more – more than $200,000 of current silver value. Sales of silver bullion rounds, 10-ounce bars, and 100-ounce bars never trigger a Form 1099B filing requirement. Sales of gold bars that are each smaller than one kilogram (32.15 ounces) absolutely do not trigger a 1099B – nor do sales of U.S. minted gold and silver coins such as the American Eagle. However, sales of certain one-ounce foreign-minted gold coins (Krugerrands, Maples, and Mexican Onzas only) do require a 1099B when a customer sells 25 ounces or more. And finally, sales of platinum bars larger than 25 ounces and palladium bars larger than 100 ounces trigger a 1099B. However, it should be noted that individual taxpayers have their own reporting obligations as to their personal tax returns. We urge you always to pay taxes you owe under the law... and that you disregard the claims of the tax protest movement.
Our customers universally recognize the importance of keeping their metals transactions private, particularly given the government’s sordid history of confiscating gold in 1933. Independent Living Bullion is dedicated to maintaining the confidentiality of customer transactions. We report only what is absolutely required and make sure clients are aware of those requirements so they can plan accordingly.