Thursday, July 22, 2010
Normally 1099 forms are used for those self-employed or contractors.
This will not only increase the price of gold coins, because of the added employees needed to perform the paperwork, but will be an additional tax to people selling their gold.
The Industry Council for Tangible Assets has come out against the outrage perpetuated on them by the Democrats and Obama, with ABC News reporting Diane Piret, industry affairs director of ICTA, saying this, "Coin dealers not only buy for their inventory from other dealers, but also with great frequency from the public. Most other types of businesses will have a limited number of suppliers from which they buy their goods and products for resale."
Piret added, that every time someone sells over $600 in gold to a dealer, they'll have to fill out the paperwork to report it to the government.
Some dealers point out they could fill out up to 20,000 forms a year just to comply with the new law. This would require additional employees to keep up with it.
Ultimately this cost will be passed on to customers.
The provison, scheduled to be implemented in 2012, is being opposed also by Rep. Daniel Lungren, R-Calif., who has introduced legislation to repeal that particular portion of the health care bill.
Sellers of gold could also experience a nightmare if they don't understand what's going on, and the gold is considered revenue, as federal and state taxes would have to be paid, and FICA taken out after the fact.
Even the IRS admits it could be a nightmare concerning the volume of paperwork which would increase.