To most gold and silver buyers, Privacy is of the utmost importance. Therefore it is essential to know that the US government requires TWO reporting obligations that bullion dealers have for customers buying and selling bullion.
Do You Report My Sales To The Government?
Although we do not report the majority of our customers’ sales to the government, we are legally obligated to file a 1099-B form when these sales apply to certain products or exceed a particular amount. Failure to report such sales could result in both civil and/or criminal tax penalties, as well as the possibility of imprisonment.
It is important for customers to understand that while the 1099-B form will require us to provide the some of the seller’s basic information, such as address and phone number, this information remains strictly between Gold Financial and the IRS. No other third parties will have access to this information. Customers, who would like to learn more about precious metals reporting policies, are strongly encouraged to either visit IRS.gov or consult with a professional tax expert.
The criteria for reporting precious metals sales will depend upon a number of factors including product, purity, and quantity. Each of which will be discussed in further detail.
When determining whether or not to report a sale, we first have to verify which particular products are being sold since certain pieces of bullion are exempt from reporting.