Does the IRS Need to Know about my Silver Bullion Purchases? The title of this article is a question that every US precious metals investor needs to have answered. Purchasers of physical silver invest as a hedge against a multitude of potential crises that could affect their financial future. Likewise, US government taxation possibilities must be taken into account, to maximize return, when conducting purchase or sale transactions for investment purposes.
Although smaller individual silver bullion purchases are private, this is not necessarily the case when precious metals are sold back to dealers. Filing of IRS Form 1099-B may required of dealers when taking possession of silver, but this depends on both the amount of silver they buy and the form in which it is sold.
Some bullion coins and rounds are exempt from filing and need not be reported by the dealer. However, any size of non-exempt rounds or bars, consisting of .999 fine silver and sold in quantities greater than 999 ounces, must be reported.
