IRS Bullion Reporting Requirements: What Gold & Silver Sellers Need to Know
When dealing in precious metals like gold, understanding federal reporting requirements is essential for both buyers and sellers. These rules are designed to combat illegal activities such as money laundering and tax evasion, and compliance is enforced through specific IRS forms and thresholds.
Why Reporting Requirements Exist
Precious metals dealers must adhere to federal laws, including the Bank Secrecy Act and the Patriot Act, which mandate the reporting of certain transactions. Filing IRS Form 8300 or Form 1099-B is not an accusation of wrongdoing; rather, it is a legal obligation. Willful non-compliance can result in significant penalties, including fines and criminal charges.
IRS Form 8300: Large Cash Transactions
Dealers are required to file Form 8300 when they receive cash or cash equivalents totaling $10,000 or more within a 24-hour period or across related transactions. Cash equivalents include cashier’s checks, bank drafts, traveler’s checks, and money orders. This requirement applies regardless of whether the transaction involves gold, silver, or other precious metals.
IRS Form 1099-B: Bullion Sales Reporting
Form 1099-B is used to report certain sales of precious metals by customers to dealers. Reporting is based on the type, size, and quantity of the bullion sold. The IRS has established specific thresholds for different metals:
| Metal | Minimum Fineness | Reportable Amount (in a single transaction) |
|---|---|---|
| Gold bars | 0.995 | One bar weighing 100 oz or more, or three 1-kilo bars (32.15 oz each) |
| Silver bars | 0.999 | Five 1,000 oz bars (5,000 oz total) |
| Platinum bars | 0.9995 | 50 oz in bars of 10 oz or more |
| Palladium bars | 0.9995 | 100 oz in bars of 10 oz or more |
| Gold Krugerrands | 0.9167 | 25 oz or more of South African gold krugerrands |
| Gold Canadian Maple Leaf | 0.999 | 25 oz or more of Canadian gold maple leaf coins |
| Gold Libertad/Onzas | 0.9000 | 25 oz or more of Mexican gold libertads/onzas |
For coins, only certain non-U.S. legal tender gold coins (such as Krugerrands, Maple Leafs, and Mexican Onzas) sold in quantities of more than 25 in a single transaction are reportable. Most U.S. legal tender coins, like American Gold Eagles, are not subject to these reporting requirements.
Capital Gains Tax
Regardless of whether a transaction is reportable by the dealer, any profits realized from the sale of precious metals may be subject to capital gains tax. Sellers are responsible for reporting these gains on their tax returns and should consult a tax professional for guidance.
Key Takeaways
- Dealers must report certain large cash payments and specific bullion sales to the IRS.
- Reporting thresholds are based on the size, type, and quantity of metal sold.
- Not all gold transactions are reportable, but all gains may be taxable.
- Compliance is mandatory, and violations can result in severe penalties.
For more information or to ensure compliance, consult a tax professional or review the latest IRS guidelines.
