Do IRS Form 1099 or other reporting rules apply to private precious metal sales in 2025?
Executive summary
Private precious-metal sales in 2025 are governed by two overlapping rulesets: Form 1099‑B reporting applies only to certain high‑volume, standardized bullion products that meet precise CFTC‑linked weight and purity thresholds and therefore is not automatic for ordinary private sales [1] [2] [3], while cash‑transaction reporting via Form 8300 still applies when dealers receive $10,000 or more in cash [4] [5]. Independent sellers remain responsible for reporting capital gains on their tax returns even when no 1099‑B is issued [6] [2].
1. Why 1099‑B reporting is not a blanket rule for all private metal sales
The IRS 2025 Instructions for Form 1099‑B and multiple dealer interpretations make clear that 1099‑B reporting is limited to “reportable” sales—essentially specific bullion products in specific quantities that can satisfy CFTC‑approved regulated futures contracts—so ordinary retail sales of smaller bars, rounds, or many coins typically fall outside mandatory 1099‑B reporting [1] [2] [7].
2. What counts as a “reportable” sale — weight, purity and the CFTC link
Dealers and legal summaries say a sale becomes reportable when the item’s type, weight and purity match the narrow list of products that the CFTC treats as deliverable under regulated futures contracts; only those standardized, high‑volume items generally trigger 1099‑B issuance [2] [5] [8].
3. Dealer practices vary and sometimes err on the side of reporting
Precious‑metal dealers publicly explain the same IRS guidance but admit practices differ: many dealers tell customers most transactions are not reported, while others voluntarily report more than legally required—sometimes driven by internal compliance policies or fear of penalties—so sellers may receive a 1099‑B from one dealer and not from another for similar sales [7] [3] [9].
4. Cash transactions remain separately reportable under Form 8300
Regardless of whether a sale is “reportable” for 1099‑B purposes, dealers must file Form 8300 for cash payments of $10,000 or more (including related transactions aggregated within 24 hours), a broad anti‑money‑laundering rule that applies across industries and is highlighted by multiple dealers and guides [4] [5] [3].
5. Aggregation rules and anti‑structuring enforcement
The IRS and dealers note that sales to the same customer in a 24‑hour window must be aggregated to determine reporting thresholds, and both dealers and sellers face scrutiny if there is reason to believe transactions were split to avoid reporting—an enforcement angle that shifts some compliance burden to dealers but can also implicate sellers [1] [2].
6. Taxpayer responsibility: reporting gains even without a 1099‑B
Even when no third‑party form is issued, taxpayers are legally responsible for reporting capital gains on Schedule D/Form 8949; independent reporting, careful cost‑basis records, and documentation are required because absence of a 1099‑B does not eliminate the underlying income tax obligation [6] [2].
7. Practical takeaway and tensions in the market narrative
The market narrative—reassuring buyers that “99.998%” of purchases aren’t reported—reflects a technical reality but can obscure two truths: dealers vary in compliance posture and customers must still report gains; and anti‑money‑laundering cash rules remain potent [7] [3] [4]. Dealers have an incentive to reassure customers while also protecting themselves from penalties, which explains differing public statements [7] [9].
Limitations of this report: the analysis relies on dealer guides, industry summaries and IRS instruction excerpts provided here; the full statutory text, any subsequent IRS rulings after the 2025 Instructions, or private‑letter rulings were not supplied and could alter nuance beyond these sources [1] [3].