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Gold Coin Sellers Angered by New Tax Law

Those already outraged by the president's health care legislation now have a new bone of contention -- a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny. California authorities investigating Goldline's sales practices. More Photos The issue is rising to the fore just as gold coin dealers are attracting attention over sales tactics. Section 9006 of the Patient Protection and Affordable Care Act will amend the Internal Revenue Code to expand the scope of Form 1099. Currently, 1099 forms are used to track and report the miscellaneous income associated with services rendered by independent contractors or self-employed individuals. Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change. This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation. Taking an early and vociferous role in opposing the measure is the precious metal and coin industry, according to Diane Piret, industry affairs director for the Industry Council for Tangible Assets. The ICTA, based in Severna Park, Md., is a trade association representing an estimated 5,000 coin and bullion dealers in the United States. "Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public," Piret said. "Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale."

1 Comments in Response to

Comment by Ross Wolf
Entered on:

After 2012 Will Gold Lose It Luster For Investors?

I live in Nevada where Brothels are legal. When this Obamacare tax takes affect in 2012, and most everyone has to fill out an IRS form for any charged service $600 or more, the term “half and half” for Nevada prostitutes may take on a whole new meaning; “First half $300; Second half $300.

It is clear Obama intends to strip U.S. Citizens of their assets, taxing anything and anybody to pay for his Socialist programs. In the case of gold, many Americans after 2012 may be reluctant to buy or sell gold through metal brokers because that might put them under scrutiny with the IRS, having to explain where they got the money to buy the gold. U.S. Citizens after 2012 buying or selling gold will lose their anonymity from the prying eyes of government. I will venture to say that Citizens that are reported buying or selling gold after 2012, may have a greater chance of being audited by the IRS. Unless this $600 dollar reporting requirement is repealed, Obama’s mandated IRS Form filings will destroy the incentive for most Americans to own gold in any large quantity. Should there be a major drop in Americans buying gold, it is questionable whether the rest of the world could support the current price; it is also foreseeable a U.S. Black Market might develop to sell gold to China and other countries and that could subsequently provide U.S. Government an excuse to make possession of a certain amount of gold—a crime. It is apparent Obama and his fellow socialists intend to destroy another industry, precious gold metals, to further their stranglehold on Americans.

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