Obamacare’s Notorious Form 1099 Reporting
November 24, 2010
Effective January 1, 2012 (unless repealed or amended), the 2010 health care law requires reporting on Form 1099s of all customer sales to coin dealers totalling $600 or more in a year. This statute applies to payments by any business for everything from office supplies to automobiles, not just your resale to a dealer of your gold coins. Its purpose is to facilitate enforcement of Federal income tax laws, specifically to collect more taxes from businesses, and to support the Obama Administration claim that the health care law will not expand the deficit.
There are many small businesses that object to this law on the grounds that it places a burden on them to keep track of their purchases. If aggregate purchases from a given supplier reach $600, they must report the payments to the vendor and IRS on a Form 1099. In addition, they will have to request a Tax ID number from every vendor.
Coin dealers who buy back gold coins from customers will apparently have to report the purchases to the IRS. A consequence of this law will be to drive some gold buying and selling business to non-US dealers, just as the threat of gold confiscation drives physical gold storage to non-US depositories and generally depresses legitimate gold-buying activity.
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