View Full Version : New 1099 Reporting Requirement...GOLD!

August 23, 2010, 23:10
New 1099 Reporting
Word is out about the 1099 reporting requirements that were buried in Obama’s health care legislation. If they go into effect, starting in 2012 precious metals dealers will have to report to the IRS on 1099s all purchases of $600 or more from clients in a single year.

These regulations will create a paperwork nightmare for precious metals dealers, greatly increasing our costs of doing business. As is the case in all businesses, higher costs are ultimately reflected in the prices of the products that businesses sell.

But more ominous than higher prices, sellers will have to provide identification to dealers, such as driver’s licenses and social security numbers. If that information is not adequately secured by the purchasing dealers, sellers could become victims of identity theft, which is a major crime today.

Further, the new 1099 reporting could endanger the personal safety of precious metals investors. Again, if the records are not properly secured and fall into the wrong hands, that information could cause criminals to conclude that the sellers have other precious metals in their homes.

Clearly, these regulations were not well thought out, and already there are bills in the House and the Senate to repeal these onerous and invasive regulations. To stop these regulations from going into effect, there will have to be a huge outcry – not just from precious metals dealers but from all business owners who will have to comply.

Already, trade and business associations are objecting and calling for support of the repeal bills. However, precious metals investors should not hope that someone else gets the regulations repealed. If the regulations go into effect, precious metals investors will be impacted much more than average Americans will be impacted.

JR in the NW
August 24, 2010, 09:11
Get into silver instead of gold.

D P Six
August 24, 2010, 11:14
1099'ing gold is just a bump in the road untill RFID's can be put in all fiat paper. But don't worry about it, the whole economic house of cards will probably come tumbling down at some point so we can start over and maybe do a better job next time.

August 24, 2010, 11:47

August 24, 2010, 12:13

Cash, I would say it isnt safe either, just ask all the folks in Zimbabwe or the old Weimar Germans what they thought of cash or hell even the Confederate States currency. In the end it was all worthless, if you have your health you have all you need. Put that in the bank.