1099-B Form
The 1099 series is a set of forms used to report any profits made by non-corporate sellers. They allow the IRS to prevent any instances of tax evasion by keeping track of individuals who may be selling items as a source of income. In the context of precious metal transactions, dealers are required to fill out a 1099-B form when a customer sells them any of the products mentioned in the IRS’s Reportable Items List according to the predetermined reportable quantities. The reporting criteria varies according to the particular coin or bullion piece sold. The reporting criteria for bars and rounds sales by customers is primarily determined by the purity and the quantity of the individual products. However, this criteria differs for each kind of precious metal. For sales of gold bars and rounds to be considered reportable, every individual piece of bullion must have a fineness of at least .995 and the total purchase quantity must be 1 kilo (32.15 troy ounces) or more. Similarly, for sales of silver bars and rounds to warrant reporting, each silver piece needs to possess a fineness of at least .999 with a total purchase quantity of 1,000 troy ounces or more. Lastly, sales of palladium and platinum bars or rounds require the smallest qualifying quantities of 100 troy ounces and 25 troy ounces, respectively. The fineness restriction for both metals is .9995. When compared to bars and rounds, the reporting criteria for coin sales by customers is slightly more straightforward since the restrictions are so specific. There are only a few coins that are eligible for reporting. Among those coins are the 1 oz Gold Maple Leaf Coins, the 1 oz Gold Kruggerand Coins, the 1 oz Gold Mexican Onza Coins and any US coin composed of 90% silver. We are required by law to report any sales of 90% silver US coins that exceed a face value of $1,000, as well as any sales of the previously mentioned gold coins, in which more than 25 pieces have been sold. There are, of course, a number bullion products that are exempt from reporting, regardless of the quantities that a customer sells. Such pieces include, but are not limited to gold coins with fractional denominations; Gold or Silver American Eagle Coins; any pieces of foreign currency that were not explicitly mentioned in the IRS’s Reportable Items List, as well as pieces of US currency that were created subsequent the list’s creation in the 1980’s.

Form 8300
According to federal tax laws, precious metal dealers are not only required to report certain sales by their customers, but they are also under legal obligation to report any cash payments they may receive for a single transaction of $10,000 or more. These laws were originally developed by the National Treasury in the 1980’s as a way to monitor large commodity exchanges within the US. By reporting these significant cash payments, the IRS is able to prevent any potential money laundering schemes, which could hurt the nation’s economy. In order to report the receipt of such payment, precious metal dealers must fill out an 8300 form. As with the 1099-B form, precious metal dealers are required to disclose the payment details of their transaction, as well as some information about the paying customer. Please be advised that while customers have the option of withholding some of this information, precious metal dealers are still required to file this form. With regards to precious metal purchases, the term “cash” is defined as the use of the following payment methods for purchases of $10,000 or less: traveler’s checks, cashier’s checks, money orders and bank drafts. The term “cash” can also refer to any payments made with US or foreign currency. Please note that using any of the previously mentioned forms of payment for purchases exceeding $10,000 does not constitute as cash and consequently, will not be reported to the IRS. Other forms of payment that are exempt from reporting include personal checks, bank wires, credit/debit cards, PayPal and ACH transfers.