🧾 What Gets Reported to the IRS?

A Simple Guide for Bullion Buyers & Sellers
On Spot Silver, LLC

✅ The Short Answer

Most bullion purchases and sales are NOT reported to the IRS. However, certain transactions may be reported depending on how you pay or what you sell.

💵 1. Cash Transactions Over $10,000

If you pay with cash or cash equivalents over $10,000:

👉 We are required to file IRS Form 8300

What counts as “cash”?

  • Physical currency
  • Money orders
  • Cashier’s checks (in certain situations)

Example:

  • You buy $12,000 worth of silver using cash → ✅ Reported (Form 8300)
  • You split into two $6,000 cash payments → ⚠️ Still reportable (and considered structuring)

🪙 2. Selling Bullion (1099-B Reporting)

When you sell certain bullion products in specific quantities, we may be required to report the transaction using:

👉 IRS Form 1099-B

📊 Common Reportable Examples

These are typical industry examples (not exhaustive):

Silver Products

  • Sales of 5,000 oz. of silver (purity requirement of .999) in not less than five 1,000 oz. bars trigger a 1099B.

Gold Products

  • Sales of 100 oz. of gold (purity requirement of .995) in not less than one 100 oz. bar or three (3) one-kilo bars (32.15 oz each) trigger a 1099B.

Other Precious Metal Products

  • Sales of 50 oz. platinum (purity requirement of .9995) in bar sizes of 10 oz. or larger, trigger a 1099B.
  • Sales of 100 oz. of palladium (purity requirement of .9995) in bar sizes of 10 oz. or larger, trigger a 1099B.

🚫 Common NON-Reportable Examples

  • Sales of silver bullion rounds, silver coins, one, five, 10, kilo, and 100 oz. silver barsor any gold coins, rounds, or bars that are smaller than one kilo — no matter how large or small the sale may be— do not trigger a Form 1099B filing requirement.

⚠️ Important Notes

  • Reporting depends on product type AND quantity
  • Not all sales are reported
  • Just because something is not reported doesn’t mean it’s tax-free

🚫 What We DO NOT Do

At On Spot Silver, LLC, we do NOT:

  • Report every transaction
  • Share your data for marketing
  • Help customers avoid IRS reporting
  • Structure transactions to bypass legal requirements

🔐 Your Privacy

We only report information when:

  • Required by law
  • Necessary for compliance

Otherwise, your transactions remain private.

See our answers to Common Questions

⚠️ Disclaimer

This guide is for informational purposes only and does not constitute tax or legal advice. Reporting requirements may change. Please consult a qualified professional.

On Spot Silver, LLC

1. Commitment to Customer Privacy

On Spot Silver, LLC is committed to protecting the privacy and confidentiality of our customers.

We do not sell, rent, or share your personal or transaction information with third parties for marketing purposes.

Customer information is only used for legitimate business operations, including order fulfillment, payment processing, and legal compliance.

2. Limited Disclosure Policy

We limit the collection and disclosure of customer information to what is:

  • Necessary to complete transactions
  • Required for fraud prevention and security
  • Required by applicable laws and regulations

We do not voluntarily disclose customer information to government agencies except where required by law.

3. IRS Reporting Compliance

On Spot Silver, LLC is required to report the SALE of your precious metals only in very rare circumstances: According to IRS regulations, only those items and quantities that can be used to fulfill a regulated Futures Contract trigger the 1099B reporting requirement. Those items are currently as follows:

  • Sale of 50 oz. platinum in bar sizes of 10 oz. or larger, triggers a 1099B.
  • Sale of 100 oz. of palladium in bar sizes of 10 oz. or larger, triggers a 1099B.
  • Sale of 100 oz. of gold in a 100 oz. bar or three one-kilo bars triggers a 1099B.
  • Sale of 5,000 oz. of silver in 1,000 oz. bars triggers a 1099B.

Sales of silver bullion rounds, silver coins, Silver bars less than 1000 oz, or any gold coins, rounds, or bars that are smaller than one kilo, even in large quantities, do not trigger a Form 1099B filing requirement.

  • Each taxpayer has their own reporting obligations. You should comply with all your legal filing requirements, including reporting all your income. Any capital gains or losses you experience are reported  by you on your income tax returns. Reporting is not required when the metals are purchased nor while the metals remain in your possession.

4. Customer Acknowledgment of Reporting Obligations

By conducting transactions with us, you acknowledge that:

  • Certain transactions may be reported to the IRS or other authorities
  • We may collect identifying information as required by law
  • We are obligated to comply with all applicable reporting requirements

Failure to provide required information may result in:

  • Delayed transactions
  • Order cancellation
  • Refusal of service

5. No Assistance in Avoiding Reporting Requirements

On Spot Silver, LLC does not:

  • Assist customers in avoiding IRS reporting
  • Structure transactions to evade legal thresholds
  • Provide advice on circumventing tax or reporting obligations

Any attempt to do so may result in:

  • Transaction cancellation
  • Refusal of service

6. Data Security & Retention

We maintain appropriate safeguards to protect customer data and retain records only as long as necessary to:

  • Comply with legal obligations
  • Prevent fraud
  • Maintain accurate business records

7. Cooperation with Authorities

We will cooperate with lawful requests from:

  • The Internal Revenue Service (IRS)
  • Law enforcement agencies
  • Regulatory authorities

This may include providing customer and transaction records where required.

8. No Guarantee of Absolute Confidentiality

While we take privacy seriously, we cannot guarantee absolute confidentiality where disclosure is required by law.

Customers should assume that:

  • Certain very large transactions are subject to reporting
  • Financial activity may be reviewed by authorities

9. No Tax or Legal Advice

On Spot Silver, LLC does not provide:

  • Tax advice
  • Legal advice
  • Financial advice

Customers should consult a qualified professional regarding their obligations.