Broker-Reporting Regulations

In 1986, NCBA achieved an exemption from reporting for numismatic items on IRS Form 1099b. In 1992, NCBA successfully completed negotiations with the IRS that, for the first time, established reasonable reporting requirements on certain bullion-related products. The original regulation required dealers to report sales of as little as one silver dime.

Order Broker-Reporting Information Kit

Cash-Reporting (Anti-Money Laundering Regulations)

Since 1991, NCBA has provided information to dealers and their professional tax advisors on compliance with these very important regulations, and on filing IRS/FinCEN form 8300. NCBA identified the best experts to assist dealers in compliance with Section 352 of the USA PATRIOT Act and has sponsored educational seminars for dealers. Many professionals have described NCBA’s Cash Reporting Information Kit as the most comprehensive compliance information available for the rare-coin / precious-metals industry. Our Cash Reporting Information Kits are available to members for a nominal fee. In addition, NCBA’s expert staff is available to assist members with specific cash-reporting questions and situations. As NCBA members know, failure to comply can result in huge fines and even imprisonment.

Order Cash-Reporting Information Kit

FTC Telemarketing Sales Rule

At a special conference in 1995, NCBA worked with FTC staff and others to revise this burdensome proposed regulation and to create an acceptable final rule. As originally written, the FTC Telemarketing Sales Rule would have made it impossible for precious-metals and rare-coin dealers to do business over the telephone, but our compromise allowed businesses to continue to conduct telephone sales, with proper and consistent procedures designed to protect consumers. NCBA has prepared an information kit to help dealers comply with the rule.

Help Hotline

NCBA members can call (678) 430-3252 to get help on daily transactions as they are happening. Although NCBA staff members are not legal or tax advisors, we usually can help determine whether cash-reporting and/or broker-reporting regulations apply. NCBA has often assisted members’ accountants or attorneys on the specifics of these regulations.

Precious Metals Accepted in IRAs

In 1981 (before NCBA existed), all precious-metals bullion and rare coins were arbitrarily removed by congress as qualified investments for IRAs and other individually directed retirement accounts. Only US American Eagle coins were deemed acceptable investments. NCBA worked with CERT on legislation that in 1997 restored precious metals (bullion) as an acceptable investment for individually directed retirement plans.

Safe Harbor for Trade Shows

NCBA achieved a 15-day “safe harbor from sales tax” nexus in California for those dealers and vendors whose only presence in the state was at conventions and shows. As long as coin dealers do not exceed this 15-day threshold, they are allowed to attend shows such as ANA conventions and the Long Beach Expo without the burden of collecting and remitting sales tax at their home-state location on all sales (mail, phone, Internet) to California residents. This precedent-setting bill has provided a model for other states’ sales-tax nexus definitions.

Sales-Tax Exemptions

NCBA has helped achieve states’ exemptions from sales taxes on numismatic and precious-metals items. Over 40 states now exempt these products (five states have no sales tax at all). NCBA continues to work with dealers and collectors for more exemptions.

NCBA also presented an amicus brief to the US Supreme Court in support of Quill in the Quill v. North Dakota case. The Quill Corp. prevailed. This was an important decision that prevented the states from forcing out-of-state dealers to collect and remit other states’ sales and use taxes. We are monitoring states’ continuing efforts to force out-of-state dealers to collect sales taxes across state lines, especially on sales conducted via the Internet. NCBA will join coalitions of organizations and businesses opposing any such federal or state legislation.