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  • Reporting Requirements : Buying

Reporting Requirements : Buying

What we are required to tell the government

When you buy from us

The reporting requirements have evolved from Anti-Money Laundering laws over the last few decades. These rules are related to both anti-money laundering requirements and to ensure that money being received is not money derived from illegal activities. 

What is reportable?


If it is a cash transaction that is:


  • Over $10,000
    • Received in one lump sum or
    • Installment payments over the course of a year (starts from the first payment) that total more than $10,000
  • From the same person
  • Received in a single or related transaction (defined below)

What is considered CASH?


  • US or foreign coins or currency
  • Cashier’s checks, money orders, bank drafts or traveler’s checks that are LESS than $10,000 in face value.

What is NOT considered CASH


  • Any payment that is drawn out of an individual’s personal account is NOT considered cash. This includes bank wires, ACH payments, personal checks, credit card, debit card or paypal payments.
  • It is currently unclear whether cryptocurrencies, like BitCoin is considered cash. 
  • Some examples of both reportable and non-reportable transactions are:


Scenario 1:

You buy $12,800 worth of gold coins and silver bars and pay using $8000 in US currency and a cashier’s check of $4,800.

Reportable?

Yes. Since the cashiers check is less than $10,000 it is considered cash. As such, the total cash you have given is $12,800.

Scenario 2:

You buy $12,800 worth of gold coins and silver bars and pay using $1,800 in US currency and a cashier’s check of $11,000.

Reportable?

No. Since the cashier’s check is more than $10,000 it is not considered cash. As such your total cash payment is only $1,800.

Scenario 3:

You buy gold bars for $33,000 and pay using a personal check for $25,000 and $8,000 in US currency.

Reportable?

No. Any payment, regardless of the amount drawn from your personal account is NOT considered cash. The cash payment is less than $10,000

Scenario 4:

You buy gold Canadian Maple Leaf coins for $12,000 and make a payment in US currency for $8,000 on April 2. You make another US currency payment on April 15 of $4,000 and receive your gold coins.

Reportable?

Yes. These are considered installment payments and are combined to total more than $10,000.

A more detailed explanation and definitions can be found on the IRS’s website here

http://www.irs.gov/pub/irs-pdf/p1544.pdf