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 coins: 1-ounce Krugerrand, Maple Leaf, or Mexican Onza — 25 coins or more
• Silver: 90% silver US coins (pre-1965 dimes, quarters, half dollars) — $1,000 face value or more per transaction
• Gold bars: 1 kilo or 1,000 ounces or larger, minimum 0.995 fineness
• Silver bars: 1,000 ounces or larger, minimum 0.999 fineness
• Platinum and palladium bars in specific sizes

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.

What Triggers a Form 8300 When You Buy

Form 8300 is a different animal. It's filed by dealers who receive cash payments over $10,000 in a single transaction, or in related transactions, from a single buyer. This is a federal anti-money-laundering requirement, not a precious-metals-specific rule — the same form applies to car dealers, jewelers, and other businesses receiving large cash payments.

Important definitional points:

• “Cash” for Form 8300 purposes includes cash equivalents — cashier's checks, money orders, bank drafts, and traveler's checks under $10,000 each. Personal checks and wire transfers are generally not treated as “cash” for this purpose.
• Related transactions are aggregated. Two $6,000 cash purchases in a 24-hour window at the same dealer trigger Form 8300 the same as one $12,000 purchase.
• The reporting is not optional for the dealer. A dealer receiving over $10,000 in cash and not filing Form 8300 is committing a federal violation.

Form 8300 filings are not tax returns. They don't affect your tax liability. They're an information report that the buyer received a large cash payment. Most buyers never know a form was filed unless they ask.

The Felony Trap: Structuring Under 31 U.S.C. § 5324

This is where the trouble usually starts.

Someone learns about the $10,000 Form 8300 threshold. They decide they don't want their purchase reported — not because they're doing anything illegal, but because they simply prefer privacy. So they split a $15,000 cash purchase into two $7,500 purchases across two days, or across two dealers.

That splitting is a federal felony called structuring, defined at 31 U.S.C. § 5324. The statute makes it a crime to “structure any transaction with one or more domestic financial institutions” — or, as expanded by regulation, with businesses subject to the Form 8300 requirement — for the purpose of evading the reporting threshold. The penalties include up to five years in federal prison, or up to ten if committed as part of a pattern.

The critical points to understand:

• The underlying purchase can be entirely legal. Structuring is a separate crime tied to the intent to evade reporting, not to the source or purpose of the funds.
• The intent standard is subjective but provable. Prosecutors typically establish structuring intent through pattern evidence (repeated purchases just below the threshold), witness statements (“I don't want this reported”), or written communications discussing the threshold.
• Dealer complicity is separately prosecutable. A dealer who helps a customer structure — by splitting an obvious single transaction, for example — faces charges alongside the customer.
• This has been prosecuted against ordinary people, not just money launderers. Small business owners, retirees, and precious metals customers have all been charged.

The simple rule: if you're paying cash and the total is $10,000 or more, let the dealer file the Form 8300. It's an information report. It does not create a tax obligation. It does not put you on a criminal-suspect list. Attempting to avoid it is far worse than complying with it.

The Privacy That Actually Exists

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

• Cash purchases under $10,000 are not reportable via Form 8300. The dealer keeps records, but no federal form is generated.
• 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 on any cash payment over $10,000, without exception
• File Form 1099-B on reportable sales, without exception
• 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 dealer receiving more than $10,000 in cash (including cashier's checks, money orders, and other cash equivalents under $10,000 each) in a single transaction or in related transactions. It's a federal anti-money-laundering information report — not a tax return. Personal checks and wire transfers generally don't trigger Form 8300. The filing does not create any tax obligation for the buyer.

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

No. This is called structuring and is a federal felony under 31 U.S.C. § 5324, punishable by up to 5 years in prison (10 if part of a pattern). The underlying purchase can be entirely legal — structuring is a separate crime tied to the intent to evade the reporting requirement. If a dealer suggests splitting a transaction to stay under the threshold, that dealer is asking you to commit a felony and may be committing one themselves.

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 verified dealer directory to find dealers who publish their reporting practices clearly.