Tom Cloud: A lot of people are asking for British sovereigns, Swiss francs, and Austrian coronas, coins that don’t require filing 1099s when you sell them.
DC: The fact that some coins and bars have to be reported and some don’t seems both arbitrary and important in deciding what to buy. Could you give an overview of US precious metals reporting rules and how your clients tend to approach the issue?
TC: Sure. When they created the Patriot Act [in 2001], the excuse was that the terrorists who blew up the Twin Towers had used pure gold and silver to finance their flight training. Whether that’s true or not, I don’t know. But the US imposed reporting requirements on sellers of 24-carat gold coins. If you sell more than 24 ounces in one year you’re required to file a Form 1099 with the IRS.