PROTECTS YOUR
BUSINESS
ICTA works to prevent laws and regulations that would
interfere with your ability to do business and/or are excessively burdensome.
ICTA also is proactive in proposing laws that would benefit the hobby and
business. Equally important, ICTA educates dealers on compliance with certain
laws and regulations. Much of our work pertains to issues of taxation and other
IRS regulations. In our work with certain government agencies, we sometimes
obtain critical clarifications specific to our industry that are only available
through ICTA. (Even an IRS examiner may not have these
letters/documents.)
SAFEGUARDS YOUR
INTERESTS
Since its establishment in 1983, ICTA has developed
important contacts within many government agencies. ICTA is often contacted
for input from our industry on laws and regulations before they are
finalized.
PROVIDES VALUABLE
INFORMATION
ICTA receives calls for help from dealers on Cash
Reporting and Broker Reporting almost daily. Often we can provide
information you need to 1) avoid costly mistakes, and 2) help prevent
overzealous IRS agents from taking advantage of your lack of expertise. Since
we talk to dealers nationwide, ICTA acts as a clearinghouse to alert you to
certain pitfalls and new enforcement activities.
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WHAT has ICTA accomplished?
In addition to constant monitoring, ICTA has been
successful in:
CASH REPORTING/ANTI-MONEY
LAUNDERING REGULATIONS
Since 1991, ICTA has provided information to dealers
and their professional tax advisors on compliance with these very important
regulations and filing IRS/FinCEN form 8300. ICTA identified the best
experts to assist dealers in compliance with Section 352 of the USA PATRIOT
Act and has sponsored educational seminars for dealers. Many
professionals have described ICTA's Cash Reporting Kit as the most
comprehensive compliance information for the rare coin/precious metals
industry. ICTA's Cash Reporting Kits are available to members at a nominal
fee. In addition, ICTA's expert staff is available to assist members
with specific cash reporting questions and situations. As ICTA members
know, failure to comply can result in huge fines and imprisonment. To order
ICTA's Cash Reporting Information Kit, click here.
BROKER REPORTING
REGULATIONS
In 1986, ICTA achieved the exemption from reporting
for numismatic items on IRS Form 1099b. In 1992, ICTA successfully
completed negotiations with the IRS which, for the first time, established
reasonable reporting requirements on certain bullion-related products. The
original regulation required dealers report as little as one silver dime.
To order ICTA's Broker Reporting Information Kit, click here.
STATE SALES TAX
EXEMPTIONS
ICTA has helped achieve 25 states' exemptions from
sales taxes on numismatics and precious metals. Currently, 30 states exempt
these products (5 states have no sales tax at all). ICTA continues to work
with dealers and collectors for more exemptions.
ICTA also worked in coalition with the Direct
Marketing Association on an amicus brief presented to the US Supreme Court
in the Quill v. North Dakota case. The Quill Corp. prevailed. This was an
important decision that prevented the states from forcing out-of-state
dealers to collect and remit other states' sales/use taxes. We are
monitoring the states' continuing efforts to force out-of-state dealers to
collect sales taxes across state lines, especially on sales conducted via
the internet. ICTA will join coalitions of organizations and
businesses opposing any such federal or state legislation.
FTC TELEMARKETING SALES
RULE
At a special conference in 1995, ICTA worked with
FTC staff and others to revise the proposed burdensome regulation and to
create an acceptable final Rule. As originally written, the FTC
Telemarketing Sales Rule would have made it impossible for precious
metals and rare coin dealers to do business over the telephone. ICTA
has prepared an informational kit to assist dealers in complying with
the Rule. To order ICTA's FTC Telemarketing Information Kit, click here.
PRECIOUS METALS ACCEPTED IN
IRAS
ICTA worked with the Coalition for Equitable
Regulation & Taxation (CERT) on legislation that in 1997 restored
precious metals bullion as an acceptable investment for
individually-directed retirement plans such as IRAs.
Previously, only US American Eagle coins were
acceptable. In 1981 (before ICTA existed), all precious metals bullion and
rare coins were arbitrarily removed by Congress as qualified investments
for IRAs and other individually-directed retirement accounts.
SAFE HARBOR FOR TRADE
SHOWS
ICTA achieved a 15-day safe harbor from sales tax nexus
in California for those whose only presence in the state was at conventions
and shows. As long as coin dealers do not exceed this 15-day threshold,
they are allowed to attend shows such as Long Beach and ANA conventions
without the burden of having to collect/remit sales tax at their home state
location on all sales (mail, phone, internet) to California
residents. This precedent-setting bill has provided a model for other
states' sales tax nexus definitions.
HELP
HOT-LINE
ICTA members can call to get help on daily
transactions as they are happening. Although ICTA staff members are not
legal or tax advisors, we usually can help determine whether Cash Reporting
and/or Broker Reporting regulations apply. ICTA has often assisted a
member's accountant or attorney on specifics of these
regulations.
"Thanks to the
information in the ICTA Cash Reporting kit and the ICTA staff's
telephone assistance with our questions over the years, our IRS 8300
audit went smoothly, quickly and with no problems in our reporting. In
fact, the agents were impressed with how knowledgeable we were, which
meant they knew they didn't need to spend many days or weeks on our
examination."
Stuart Golub, Irvine Gold
Mine
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ICTA'S ongoing issues
USA PATRIOT ACT SECTION 352 ANTI-MONEY LAUNDERING REGULATIONS
Since January 1, 2006, the USA PATRIOT Act
specifically targets precious metals dealers in Section 352 of this
anti-terrorism law. ICTA has worked with the US Department of the Treasury on
the unique aspects of our industry and has helped Treasury develop reasonable
compliance regulations that will satisfy Treasury's anti-terrorism
requirements while not being overly burdensome for coin/precious metals
dealers. ICTA has developed excellent contacts within Treasury that assist us
with clarification on specific points of the PATRIOT Act and other aspects of
the cash reporting/anti-money laundering laws that impact our industry.
Proper and timely compliance with the USA PATRIOT Act and other cash
reporting/anti-money laundering regulations is extremely important. Ignorance
of the law is not a defense and can result in calamitous financial penalties
and even prison terms.
CHINESE COUNTERFEIT COINS
ICTA is working with the United States House of
Representatives Committee on the Judiciary to develop means of stopping the
flow of high-grade counterfeit coins manufactured in China from entering
the US marketplace. ICTA brought this issue to the attention of
relevant congressional committees and Members of Congress and continues to
work to solve this serious problem.
CAPITAL GAINS TAX FOR RARE
COINS & PRECIOUS METALS
ICTA has supported the efforts of the World Gold Council's federal
legislation that would qualify gains from precious metals investments for
the lower capital gains tax rate and will continue to push for this and
similar legislation that would qualify rare coin investments for the
lower capital gains tax rate, as well.
FINANCIAL REFORM
ICTA monitors Congress and the federal agencies
for any changes in delivery requirements for physical precious metals and
any other CFTC (Commodity Futures Trading Commission) provisions that might
adversely affect rare coin/precious metals dealers.
As part of the recent Dodd-Frank Financial Reform Act,
ICTA fought of the CFTC's efforts to decrease the
time-tested 28-day delivery window for physical precious metals to as
little as 2 days, an impossible standard for our industry to meet.
RESTORING RARE COINS IN IRAS
ICTA is currently working with CERT to have rare
coins restored as qualified investments in IRAs and similar self-directed
retirement plans.
INTERSTATE COLLECTION OF SALES/USE TAXES
For several years the states have been working
together to create a "simplified" sales tax plan (SSTP) so that the US
Congress will grant them the power to force out-of-state merchants to
collect and remit sales taxes for each state. Citing internet business as
being unfair to "brick and mortar" businesses, this plan could affect all
mail, phone, and internet business. In addition, there is a provision in
this plan that calls for elimination of any sales tax exemption that has a
minimum or maximum (many sales tax exemptions on precious metals and coins
have a minimum transaction threshold). This plan has substantial support in
Congress, and ICTA is working to help to defeat such a plan. This is a very
large issue that potentially could change the way in which merchants in the
United States have conducted business for over 200 years. Preserving
our existing sales tax exemptions will be critical.
FAA/TSA/DHS AIRLINE SECURITY REGULATIONS
ICTA continues to be in regular contact with the
Federal Aviation Administration (FAA), Transportation Security
Administration (TSA), and the Department of Homeland Security (DHS) to
assure that our members are able to transport coins, precious metals, and
currency necessary for participation at shows and conventions. We've worked
with the TSA to educate airport screeners about this type of
merchandise. As a direct result of ICTA's efforts, there is now a
special section on the TSA's website regarding transport of these items.
Check the TSA's website www.tsa.gov for more information. Go to
"Travelers and Consumers" then "Air Travel" then "Transporting Special
Items" then "Carrying Currency, Coins, Precious Metals or Valuable
Jewelry."
VAT (NATIONAL SALES TAX)
The US is the only major power that does not yet
levy a Value Added Tax (VAT) or similar national tax (called the Goods
& Services Tax in Canada). ICTA is constantly on guard against efforts
to impost this type of tax in the US that would be disastrous for
the rare coins and precious metals industry.
INDIVIDUAL STATE ISSUES
ICTA is frequently able to provide data and support
to each state organization. Often ICTA's information is critical in
helping to prevent state and local laws such as excessive holding
laws, reporting regulations, and erroneous enforcement of sales taxes.
ICTA continues to assist efforts to achieve additional state sales tax
exemptions.
FEDERAL TRADE COMMISSION
An industry group of literary
experts approached the Federal Trade Commission (FTC) regarding three of
its consumer alerts published on its website www.ftc.gov on the topic of investing in precious metals.Working through ICTA, this group has completed editing
one of these alerts to ensure accuracy and helpfulness to
consumers.ICTA will continue to work with
the FTC on materials published on its website.
"ICTA is the only organization we have that
intervenes on our behalf with government to resolve our business
issues. Without ICTA, the PNG itself would be forced to establish such
representation, and we lack the professional experience, knowledge, and
government relationships to do that job
effectively."
Bob Brueggeman, Executive Director, Professional Numismatists Guild, Inc.
(PNG)
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