Private vs. Reportable Bullion Transactions

If bullion buying and selling privacy are of importance to you, take note.

All bullion dealers in the U.S.A. are required to follow the IRS’ rules on silver and gold reporting in regards to #1, anti-money laundering policies (AML) and #2, sales of bullion from customers to dealers.

Anti-Money Laundering aka A.M.L Compliance

If you walk into a coin shop and buy bullion with $10,000 or more in cash or cash equivalents (money orders, cashiers checks, bank drafts, travelers checks, etc.), the coin shop is required by the IRS to fill out an IRS Form 8300.

It is for this very reason that many online dealers will not accept cash or cash equivalent payments.

This is why online dealers prefer payments from sources already within the financial system (bank wires, personal checks, business checks, PayPal, Credit Cards, Debit Cards, ACH transfers, etc).

These types of payments are within financial institutions, which should have already conducted the appropriate AML policies on said funds.

When You Sell Bullion to a Dealer

When a customer sells their bullion to a dealer the question the dealer must ask themselves are what product are they selling me, in what volumes, and within what timeframe?

Within the U.S.A., both online or in a brick and mortar coins shop the rules are the same. If you sell the required volume of reportable products to a dealer, they are required to fill out an IRS 1099B Form.

At JM Bullion we understand privacy is of the utmost importance to many bullion buyers. This is why we created this Reportable Bullion Transactions Infographic.

Please note that reporting requirements do not exempt customers from capital gains or other relevant taxes. Please seek a tax advisor for any tax advice you need. I am not a tax professional.

The next article in our Beginners’ Guide to Buying Physical Bullion will discuss the differences between bars, rounds and coins.

» Should you Buy Bars, Rounds, or Coins?

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.