The requirement tucked inside the Healthcare Bill that requires gold coin dealers to file 1099 forms on anyone buying or selling coins with a value of over $600, apparently goes way beyond just coins.
The provision also applies for any other goods worth over $600 bought or sold by businesses of all sizes, charities and other tax-exempt organizations, and government entities.
But, the IRS has already issued one clarification given the uproar. Purchases made by credit cards and debit cards will not have to be reported.
Obviously, the provision is about attempting to track cash flows (particularly from gold and silver sales).
Indeed, according to the National Taxpayer Advocate (a taxpayer "advocate" department within the IRS), "the new information reporting requirements are likely intended to detect unreported income or gross proceeds."
Bottom line: More than anything, the provision is about getting the names and Tax ID's of those buying and selling gold and silver coins.