What products and minimum quantities are specified in the current CFTC/CME precious metals futures contracts that determine IRS reportability?
Executive summary
The IRS treats sales of precious metals as reportable only when the metal is sold in a form and quantity that correspond to a Commodity Futures Trading Commission (CFTC)-approved regulated futures contract (RFC); sales of forms or quantities that are not covered by an RFC are not reportable on Form 1099‑B [1]. The practical list of which products and minimum quantities trigger reportability is set by the CFTC/CME contract specifications (which dealers and taxpayers must consult), with published examples including “bulk gold” defined as bars of at least one kilogram (32.15 troy ounces) at .995 fineness or better [2] [3].
1. What the IRS requires for a precious‑metal sale to be reportable
The IRS instruction for Form 1099‑B makes the principle straightforward: a sale is reportable only if the precious metal sold is of a form for which the CFTC has approved trading by an RFC and the quantity sold meets the CFTC’s minimum quantity requirements; otherwise the sale is not reportable [1]. The IRS directs dealers and taxpayers to the CFTC‑approved contract list (and related guidance) to determine whether an item and quantity qualify, and professional guidance has long relied on Revenue Procedure 92‑103 as a baseline for mapping specific items to CFTC‑approved contracts [3] [1].
2. Which products and quantities the CFTC/CME have used as the reportability standard
CME/CFTC contract specifications are the operative source for the “form and minimum quantity” test: the exchange lists the exact product definitions and contract sizes that constitute regulated futures contracts [4] [5]. A widely cited concrete example is the CFTC‑approved “bulk gold” definition: gold bars weighing one kilogram (32.15 troy ounces) or larger, with fineness .995 or better, are treated as the unit that corresponds to an RFC for reporting purposes—meaning retail sales aggregating to that quantity and meeting the form/fineness criteria can be reportable [2]. Separately, some precious‑metals futures are quoted and traded in multi‑thousand‑ounce contract units on the exchange reporting tables (for example certain contract reports are denominated in contracts of 1,000 troy ounces), underscoring that contract unit sizes vary by metal and product and must be checked on the CME/CFTC spec sheets [6] [4].
3. How dealers and taxpayers are expected to apply those definitions
Dealers are instructed to determine reportability by checking whether the metal sold corresponds in both form (coin, bar, etc.) and minimum quantity (by weight or number of items) to a CFTC‑approved RFC; the Florida Gold Exchange compendium and IRS guidance both highlight that the criteria specify form and minimum quantity and direct dealers to the CME for the current approved list [3] [1]. In practice that means a retail sale of a single common coin or a small fractional bar typically will not meet the CFTC minimums and so will not be reportable, whereas sales of bars or lots that meet the exchange’s bulk definitions (such as the kilo‑bar example) can cross the threshold [3] [2] [1].
4. Where the public record is clear and where it’s thin
Primary public sources are the CFTC’s lists of approved futures/contracts and the CME contract specifications, which publish product definitions, contract sizes, and delivery/grade criteria that determine reportability [5] [7] [4]. Tax guidance (Form 1099‑B instructions) states the legal standard but does not enumerate each coin or bar type; secondary summaries (e.g., Coin World, dealer guides) interpret the CFTC/CME rules and give examples such as the 1‑kg gold bar at .995 fineness [1] [2] [3]. Reporting gaps remain: the IRS instructions and some summaries tell taxpayers to consult CFTC/CME lists but do not list every eligible coin or fraction, so verification on the exchange rule pages and, if necessary, counsel or dealer compliance officers is required [1] [4].
5. Bottom line for determining reportability today
The hard test is twofold and sourced to the IRS/CFTC/CME materials: the metal must be of a form for which the CFTC has approved trading by an RFC, and the sale must meet the CFTC’s minimum required quantity (by weight or number of items); examples and the operative contract sizes are available on the CME/CFTC contract specification pages, with the commonly cited bulk‑gold threshold being one kilogram at .995 fineness [1] [4] [2] [3]. Where the published guidance does not name every coin or bar, dealers and taxpayers must consult the current CFTC/CME specifications and, if ambiguity persists, seek compliance guidance because the IRS instructions point back to those exchange approvals rather than providing an exhaustive list [1] [5].