WHAT has ICTA accomplished?

 

In addition to constant monitoring to be on top of the latest potential problems, 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 has sponsored educational seminars for dealers, and many professionals have described its 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 ICTA 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

(IRS Form 1099b) – In 1986, ICTA achieved the exemption from reporting for numismatic items. In 1992, ICTA negotiated with the IRS reasonable reporting requirements for coin dealers based on commodity contract minimums. 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 21 states’ exemptions from sales taxes on numismatics and precious metals. Currently 26 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.

 

FTC TELEMARKETING 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 Rule would have made it impossible for precious metals and rare coin dealers to do business over the telephone. 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 metal bullion and coins were arbitrarily removed by Congress as qualified investments.

 

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 they do not exceed this 15-day threshold, this important legislation allows dealers 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.

 

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

Back to Top

ICTA’S ongoing issues

 

USA PATRIOT ACT

CASH REPORTING/ANTI-MONEY LAUNDERING REGULATIONS

The rare coin/currency/precious metals industry is unique in that it is the only profession that buys and sells coins and currency as merchandise, not cash. The USA PATRIOT Act specifically targets coin dealers in certain sections of this anti-terrorism law. ICTA has worked with US Treasury on the unique aspects of our industry and has negotiated 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.

 

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 will 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 (most sales tax exemptions on precious metals and coins have a minimum transaction amount). This plan has substantial support in Congress, and ICTA is working to help to defeat such a plan. This is a very large issue, however, and 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. 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 this type of tax that would be disastrous for rare coins and precious metals.

 

INDIVIDUAL STATE ISSUES

ICTA is able to provide data and support to each state organization. Often ICTA's information is critical in helping to prevent such state and local laws such as excessive holding laws, reporting regulations, and erroneous enforcement of sales taxes. ICTA continues to seek additional state sales tax exemptions.

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)

Back to Top