(402) 517-2213

For American National Bank – April 2020 

Anti-Money Laundering aka A.M.L Compliance

If you walk into Coinhuskers and buy bullion with $10,000 or more in cash or cash equivalents (money orders, cashiers checks, bank drafts, travelers checks, etc.). Coinhuskers is required by the IRS to fill out an IRS Form 8300.

Coinhuskers does not accept cash or cash equivalent payments above $9,000.

At Coinhuskers, payments above $9,000 cash or cash equivalent payments come from sources already within the financial system (bank wires, personal checks, business checks, PayPal, Credit Cards, Debit Cards, ACH transfers, etc)

These types of payments are within financial institutions, which should have already conducted the appropriate AML policies on said funds.

When You Sell Bullion to Coinhuskers

When a customer sells their bullion to Coinhuskers the question we ask is what product are they selling us, in what volumes, and within what timeframe?

If customers sell the required volume of reportable products to Coinhuskers, we are required to fill out an IRS 1099B Form.

Reportable items:

Gold Bars/Rounds = Any size bars totaling 1 Kilo (32.15 troy ounces) or more.

Gold Canadian Maple Leafs = Any quantity 25 troy ounces or more.

Gold African Kruggerands = Any quantity 25 troy ounces or more.

Gold Mexican Onza = Any quantity 25 troy ounces or more.

Silver Bars/Rounds = Any size bars totaling 1000 troy ounces or more. 

Silver 90% U.S Coinage = Any combination of dimes, quarters or half dollars totaling more than $1000 face value or more. 

Platinum Bars/Rounds = Any size bars totaling 25 troy ounces or more.

Palladium Bars/Rounds = Any size bars totaling 100 troy ounces or more. 

Tax Implications and Reporting Requirements for Bullion Transactions

For many of our customers, investing in precious metals serves as a passive form of income that enables them to generate profits simply through the sales or market activity of their bullion. However, as with any other sources of income, passive or otherwise, customers need to be aware of the tax implications associated with their transactions. According to the IRS’s policies, there are two circumstances under which, precious metals dealers are legally obligated to report your transactions: when a customer sells large quantities of specific bullion pieces and when they pay $10,000 or more in cash. Failure to do so can result in penalty fines, criminal charges and even the possibility of imprisonment for both Coinhuskers and our customers. When reporting either of the previously mentioned transactions, there are specific forms that precious metals dealers are required to fill out. These include a 1099-B and an 8300, respectively. Please be advised that while Coinhuskers is required to provide certain information about our customers, these details remain strictly confidential between us and the IRS; at no point will any third party have access to their private information.

1099-B Form

The 1099 series is a set of forms used to report any profits made by non-corporate sellers. They allow the IRS to prevent any instances of tax evasion by keeping track of individuals who may be selling items as a source of income. In the context of precious metal transactions, Coinhuskers is required to fill out a 1099-B form when a customer sells them any of the products mentioned in the IRS’s Reportable Items List according to the predetermined reportable quantities. The reporting criteria varies according to the particular coin or bullion piece sold. The reporting criteria for bars and rounds sales by customers is primarily determined by the purity and the quantity of the individual products. However, this criteria differs for each kind of precious metal. For sales of gold bars and rounds to be considered reportable, every individual piece of bullion must have a fineness of at least .995 and the total purchase quantity must be 1 kilo (32.15 troy ounces) or more. Similarly, for sales of silver bars and rounds to warrant reporting, each silver piece needs to possess a fineness of at least .999 with a total purchase quantity of 1,000 troy ounces or more. Lastly, sales of palladium and platinum bars or rounds require the smallest qualifying quantities of 100 troy ounces and 25 troy ounces, respectively. The fineness restriction for both metals is .9995. When compared to bars and rounds, the reporting criteria for coin sales by customers is slightly more straightforward since the restrictions are so specific. There are only a few coins that are eligible for reporting. Among those coins are the 1 ounce Gold Maple Leaf Coins, the 1 ounce Gold Kruggerand Coins, the 1 ounce Gold Mexican Onza Coins and any US coin composed of 90% silver. Coinhuskers is required by law to report any sales of 90% silver US coins that exceed a face value of $1,000, as well as any sales of the previously mentioned gold coins, in which more than 25 pieces have been sold. There are, of course, a number bullion products that are exempt from reporting, regardless of the quantities that a customer sells. Such pieces include, but are not limited to gold coins with fractional denominations; Gold or Silver American Eagle Coins; any pieces of foreign currency that were not explicitly mentioned in the IRS’s Reportable Items List, as well as pieces of US currency that were created subsequent the list’s creation in the 1980’s.

Form 8300

According to federal tax laws, Coinhuskers is required to report certain sales by their customers, but they are also under legal obligation to report any cash payments they may receive for a single transaction of $10,000 or more. These laws were originally developed by the National Treasury in the 1980’s as a way to monitor large commodity exchanges within the US. By reporting these significant cash payments, the IRS is able to prevent any potential money laundering schemes, which could hurt the nation’s economy. In order to report the receipt of such payment, Coinhuskers must fill out an 8300 form. As with the 1099-B form, Coinhuskers is required to disclose the payment details of their transaction, as well as some information about the paying customer. Please be advised that while customers have the option of withholding some of this information, Coinhuskers is still required to file this form. With regards to precious metal purchases, the term “cash” is defined as the use of the following payment methods for purchases of $10,000 or less: traveler’s checks, cashier’s checks, money orders and bank drafts. The term “cash” can also refer to any payments made with US or foreign currency. Please note that using any of the previously mentioned forms of payment for purchases exceeding $10,000 does not constitute as cash and consequently, will not be reported to the IRS. Other forms of payment that are exempt from reporting include personal checks, bank wires, credit/debit cards, PayPal and ACH transfers.

Capital Gains Tax

As previously mentioned, selling precious metal merchandise can serve as an additional source of income for many customers. Therefore, in the eyes of the IRS, any profits a customer acquires through the sale of their precious metal assets is considered taxable and is subject to a form of taxation known as “capital gains” taxes. “Capital gains” refers to any profits that resulted from the sale or exchange of personal stock or assets. In terms of precious metals, capital gains are acquired when a particular coin or bullion piece increases in value and is then sold at that higher price. This price difference between the initial price of the precious metal and its final sale price is considered capital gain. Consequently, any such profits are subject to the capital gains tax. Please be advised that such profits are only considered as capital gains if the precious metal asset is sold. Increases in the value of an individual’s precious metal bullion due to market fluctuation will not be recognized as a capital gain and as a result, will not be subject to any taxation.

Reportable Bullion Transactions with Coinhuskers

Because Coinhuskers is a reputable dealer, all purchases and sales of precious metal coins and bullion will be conducted according to the IRS policies outlined above. Please note that while this information is intended to help our customers understand the tax implications of their precious metal sales and purchases, it is not intended to serve as financial or legal advice. We encourage customers to consult with a tax professional for more specific details regarding their individual situations. 

*Coinhuskers cannot legally give tax advice under any circumstance!  

Does Coinhuskers report Sales To The Government?

 

At Coinhuskers, we pride ourselves on maintaining the privacy of our customers. This being said, although we do not report the majority of our customers’ sales to the government, we are legally obligated to file a 1099-B form when these sales apply to certain products or exceed a particular amount. Failure to report such sales could result in both civil and/or criminal tax penalties, as well as the possibility of imprisonment.

It is important for customers to understand that while the 1099-B form will require us to provide the some of the seller’s basic information, such as address and phone number, this information remains strictly between Coinhuskers and the IRS. No other third parties will have access to this information. Customers, who would like to learn more about precious metals reporting policies, are strongly encouraged to either visit IRS.gov or consult with a professional tax expert.

1099-B Requirements

The criteria for reporting precious metals sales will depend upon a number of factors including product, purity, and quantity. Each of which will be discussed in further detail.

Product

When determining whether or not to report a sale, we first have to verify which particular products are being sold since certain pieces of bullion are exempt from reporting. Among the coins that are subject to reporting are 1 ounce Gold Maple Leaf Coins, 1 ounce Gold Kruggerand Coins, 1 ounce Gold Mexican Onza Coins and any US coin composed of 90% silver. All bars and rounds are also subject to reporting regardless of size and precious metal composition. However, there are some restrictions with regard to the purity of each bar or round.

Purity

Another determining factor in whether a sale is subject to reporting is the purity or fineness of each particular bullion piece. Because the purity of coins is dictated by their inherent designs, there are no purity restrictions for the coins mentioned in the previous section. In the case of bars and rounds, however, the purity criteria will vary according to the item’s precious metal composition. Only sales on bars and rounds possessing the following compositions and purity levels will be subject to reporting: a gold fineness of at least .995; a silver fineness of at least .999; a platinum fineness of at least .9995; and a palladium fineness of at least .9995.

Quantity

The final step is to determining whether a precious metal sale needs to be reported is to evaluate the quantity being sold. We are required by law to report all sales of 90% silver US coins exceeding a face value of $1,000 as well as sales of the previously mentioned gold coins, where more than 25 pieces have been sold. As with purity, the qualifying quantities for precious metal bars and rounds will vary according to their precious metal composition. Sales of gold bars and rounds need to be 1 kilo (32.15 troy ounces) or more before we need to report them.  Likewise, sales of silver bars and rounds must reach 1,000 troy ounces. Lastly, sales of palladium bars and rounds need to be at least 100 troy ounces before they require reporting, while sales of platinum bars and rounds need to be at least 25 troy ounces.

Exemptions

Sales in which any of the previously mentioned items fail to meet the required purity or quantity criteria will not be subject to reporting. In addition to these such cases, there are a number of precious metal coins that are exempt from government reporting regardless of their sales quantities. These pieces include, but are not limited to gold coins of fractional denominations; American Gold and Silver Eagle Coins; US currency created after the establishment of the IRS’s Reportable Items List and any foreign currency pieces not explicitly mentioned in the above section.

Why Does This Law Exist?

These laws regarding reporting precious metals were established by the IRS during the 1980’s as a means of keeping track of any profits made by non-corporate sellers. They are primary for taxation purposes. They prevent individuals from using precious metals sales as an unreported source of income.

Buying Gold & Silver With Card Card/Bank Wires at Coinhuskers

Coinhuskers is pleased to offer bank wiring and credit cards as a form of payment for its customers. Bank wires provide customers with a smooth and secure transaction experience and we encourage you to take advantage of this payment method for your purchase. Bank wires provide the opportunity to pay for your larger gold and silver purchases in full without having to concern yourself with potential interest fees or drawn out payment plans.

Sending a Bank Wire to Coinhuskers 

Coinhuskers sends an email containing instructions for wiring your payment. Most of these actions will have to be carried out by the purchasers bank. Coinhuskers gives customers  two days to complete a wire transfer upon verbal agreement of payment. Bank wire payments that are not received within two business days of order placement will be canceled and subject to the cancellation and market loss fees.

Clearance & Shipping on Bank Wires 

Clearance for bank wires occurs the moment we receive your payment. Since we process bank wire payments on multiple occasions throughout the day generally, you can expect a confirmation email on the day of its arrival. Bank wire payments must be received within two business days of order placement. All orders that are not paid within this time frame will be canceled and cancellation fees/market losses will be billed without exception.

Product will be shipped as soon as payment clears & product is available in stock.

Buying Gold & Silver With Paper Check at Coinhuskers

Coinhuskers is dedicated to providing its customers with the most positive transaction experience possible, which is why we are pleased to offer paper checks as one of your many payment options. Paper checks allow you to make full payment on larger investments without any drawn out payment structures or potential interest rates. Paper checks also escape the common fees and penalties associated with credit card use.

Reporting Purchases Made With Cashier’s Checks & Money Orders

Coinhuskers is required by law to report any “cash payments” that exceed $10,000. Included under the category of “cash payments” are cashier’s checks and money orders for LESS than $10,000. “This policy also applies to any related transactions that are made within 24 hours of each other and whose combined total is more than $10,000.” So an order for $11,000 worth of silver, paid for with two money orders of $5,000 and $6,000 each, would trigger a reporting requirement.

Payments made with credit cards, bank wires or personal checks are exempt from these policies.

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