Precious Metals Reporting: 1099-B, Form 8300, and the Felony Trap Called Structuring

Two things are commonly conflated in precious metals discussions: capital gains tax on profits when you sell, and transaction reporting by dealers when you buy or sell. They are separate legal frameworks with separate triggers, and confusing them is how well-meaning buyers accidentally commit federal felonies.

This article covers the transaction reporting layer — Form 1099-B on certain sales, Form 8300 on cash-receipt purchases over $10,000, and the felony statute at 31 U.S.C. § 5324 that turns “let me just break this into two purchases to stay under the reporting threshold” into a serious criminal charge.

The good news: buying and selling precious metals is entirely legal, and most transactions never trigger any reporting at all. The reporting rules that do exist are narrow, and the felony rule is even narrower — but understanding both keeps you well clear of the trap.

What Triggers a 1099-B When You Sell

The IRS Form 1099-B is filed by dealers reporting certain customer sales. Not every sale is reported. The reportable items and quantities are defined by the industry standard tied to CFTC-approved regulated futures contracts.

Reportable sales include:

• Gold bars and rounds: minimum .995 fineness, totaling 1 kilo (32.15 troy ounces) or more, with a customer's sales over 24 hours added together
• Silver bars and rounds: minimum .999 fineness, totaling 1,000 troy ounces or more
• Gold coins (industry practice): 1-ounce Krugerrand, Maple Leaf, or Mexican Onza — 25 coins or more
• Silver coins (industry practice): 90% silver US coins (pre-1965 dimes, quarters, half dollars) — $1,000 face value or more
• Platinum bars and rounds totaling 25 troy ounces or more, and palladium bars and rounds totaling 100 troy ounces or more (minimum .9995 fineness)

The two coin thresholds reflect long-standing industry practice; their status is less clear after the IRS's January 2026 correction to its Form 1099-B instructions. See our article on the 2026 correction.

Not reportable (by product):

• American Gold Eagles, American Silver Eagles, American Gold Buffalos — not on the reportable list at any quantity
• Fractional gold coins (below 1 oz)
• Most bar sizes under the thresholds above
• Numismatic coins outside the specific bullion categories

This is where dealer marketing sometimes gets creative. “No 1099 on this product” is often technically true — for the specific reportable-product list — but it does not mean the sale is untaxed. All capital gains on the sale of precious metals are taxable regardless of whether a 1099 is filed. The 1099 is a reporting mechanism to the IRS, not the trigger for the tax obligation.

Form 8300 and Structuring: The Short Version

Form 8300 is the report a business files when it receives more than $10,000 in cash in one transaction or in related transactions. It is an anti-money-laundering information report, not a tax return, and it does not create a tax obligation for the buyer. The dealer files it, not the customer. For this rule, “cash” means currency, plus cashier's checks, money orders, bank drafts, and traveler's checks that have a face amount of $10,000 or less and are received in designated reporting transactions. Personal checks and wire transfers are not cash for this purpose. The business must give the customer a written statement by January 31 of the following year, and may file voluntarily on a suspicious transaction of $10,000 or less.

Splitting a purchase to keep a business from filing is called structuring. It is prohibited by statute, including 31 U.S.C. § 5324, it carries criminal penalties, it can apply even when the money is legitimate, and it can reach anyone who helps. For the full rules, including how related payments add up, see our guide to Form 8300 and structuring.

The Privacy That Actually Exists

Legitimate privacy in precious metals transactions is available, and much of it is built into the system.

• Cash purchases of $10,000 or less generally do not require a Form 8300. The dealer keeps records, and may file voluntarily on a transaction it considers suspicious.
• Purchases of non-reportable products at any dollar amount, paid by check, wire, or credit card, don't trigger 1099-B on the eventual sale.
• Sales of amounts below the reportable thresholds are not 1099-reported, though the capital gains tax still applies.
• Sales to non-dealer private parties are not 1099-reported (though again, the capital gains tax still applies).

None of this means “off the books.” All capital gains on precious metals sales are taxable and legally required to be reported on your own tax return. The absence of a 1099 doesn't create a tax exemption; it creates only the absence of a third-party report to the IRS. Your own filing obligation remains.

What Legitimate Dealers Will Tell You

A dealer operating professionally will:

• File Form 8300 when the cash rules require it
• File Form 1099-B on reportable sales
• Refuse to structure transactions to avoid either report
• Answer straightforwardly when asked what triggers reporting on a specific product
• Not use “no reporting” as a marketing hook that implies “no taxes”

A dealer who offers to “help you avoid reporting,” who suggests splitting a purchase across multiple visits or entities, or who advertises specific products primarily as “reporting-free” is offering you help you don't want. The dealer's incentive is the sale; your incentive is not becoming a defendant.

The Tax Obligation Itself

Once you sell precious metals at a gain, capital gains tax applies. For most precious metals sales held over a year, the IRS treats the gain as collectibles for tax purposes, taxed at a maximum federal rate of 28% (versus the 15% or 20% maximum for ordinary long-term capital gains on stocks and other assets). Held under a year, the gain is short-term and taxed at ordinary income rates.

This tax obligation applies whether a 1099-B was filed or not. Your basis (what you paid, plus any premium and shipping costs) is subtracted from the sale price to determine the gain. Documentation matters — keep purchase receipts, dealer invoices, and any related shipping and insurance records.

For a broader treatment of the capital gains tax on precious metals sales, including the collectibles-rate mechanics and state-level tax variation, see our full capital gains tax guide.

Frequently Asked Questions

Which precious metals sales require the dealer to file a 1099-B?

Only sales of specific products at specific quantities: 25+ ounces of Gold Krugerrands, Maple Leafs, or Mexican Onzas; $1,000+ face value of 90% silver US coins; 1 kilo or 1,000 ounce gold bars; 1,000 ounce silver bars; and specific platinum and palladium bar sizes. American Gold Eagles, American Silver Eagles, American Gold Buffalos, and most fractional coins are not on the reportable list at any quantity — though the capital gains tax on any sale still applies regardless of whether a 1099 is filed.

What does Form 8300 do, and when is it filed?

Form 8300 is filed by a business that receives more than $10,000 in cash in a single transaction or in related transactions. Cashier's checks, money orders, and similar instruments count as cash only at $10,000 or less and only in designated reporting transactions. It is an anti-money-laundering information report, not a tax return, and it does not create a tax obligation for the buyer. Personal checks and wire transfers are not cash for this purpose. See our Form 8300 guide for the full rules.

Is it legal to break a large cash purchase into two smaller ones to avoid Form 8300?

No. Breaking up a purchase to keep a business from filing a required report is called structuring. It is prohibited by statute (31 U.S.C. § 5324(b) covers transactions with nonfinancial businesses) and carries criminal penalties. The underlying purchase can be entirely legal; structuring is a separate offense tied to the purpose of evading the report. If a dealer suggests splitting a transaction to stay under the threshold, that is a warning sign.

If no 1099 is filed on my sale, do I still owe capital gains tax?

Yes. The tax obligation is independent of whether a third-party report is filed. All capital gains on precious metals sales are taxable and must be reported on your tax return. The 1099-B is a reporting mechanism to the IRS; the tax obligation exists regardless.

Can I buy precious metals privately from an individual without any reporting?

Yes — private-party purchases between individuals don't trigger Form 8300 (which applies to businesses) or 1099-B (which applies to dealer sales). Both parties should still keep transaction records. The private-party seller still has a capital gains tax obligation on any profit, whether or not any form is filed.

This article is general information only, not tax or legal advice. Precious metals reporting and tax rules can be complex, and specific transactions should be discussed with a qualified tax professional or attorney. Browse our dealer directory to find dealers who publish their reporting practices clearly.