August 18, 2010 - It has been widely reported that one of the last-minute additions to our nation’s new healthcare bill included an amendment which will force all gold dealers to complete an IRS Form 1099 for any transaction over $600. Gold bullion tax reporting is already required, and gold dealers say this new law is only aimed to increase their labor. However, at least one lawmaker has set out to have this requirement repealed.
Rep. Dan Lungren (R-California) introduced a House bill to repeal the new gold bullion tax reporting obligation, which is set to take effect January 1, 2012. "I feel confident...that we will repeal this before it becomes effective, if in fact, the people affected - the business community - keep the pressure on,” said Lungren. Since the new law affects all businesses, not simply gold dealers, many have taken up the fight for repeal.
Large gold exchanges often trade hundreds of thousands of ounces per day, so the $600 gold bullion tax reporting threshold (less than one-half of an ounce of gold) could create a cumbersome amount of paperwork. Some have criticized the government, saying that our lawmakers only want to make things difficult for precious metal dealers, who tend to do more business when stocks, real estate, and the US dollar falter. Others say the new reporting law brings us one step closer to a second gold bullion confiscation, which was done historically to salvage a dying US currency and to pay down government debt. The fact is that we are not privy to the government’s motives, only their laws, and investors are encouraged to stay updated on this story directly at Gold-Billion.org.
