Coin Collectors Need to Speak Up About Sneaky Provision in Health Care Bill
hidden provision in the recent health care bill that passed earlier this year. Now coin collectors and dealers are being asked to speak up.
Section 9006 of the Patient Protection and Affordable Care Act (aka Health Care Reform Bill) will cause a change in the Internal Revenue Code that will expand the scope of Form 1099. In 2012 dealers will be required to report to the IRS via Form 1099 the purchases of all goods and services by small businesses and self-employed people that exceed $600 in a given year. Collectible coins and bullion fall under this new law.
In essence what this means is that every time you sell more than $600 in coins to a dealer within a single year, that dealer will need to report those transactions to the IRS on a form 1099. This means that you will need to give that dealer not only your name and address, but also your social security number!
In this day and age of identity theft, I'm not real comfortable giving many of the dealers I meet and deal with at coin shows this information. Plus, all these new reporting requirements are going to increase a dealer's cost of doing business, especially some of the smaller dealers. This means higher prices on the coins we all buy.
If this provision of the healthcare bill goes into law, I for one will scale back on the number of dealers I do business with. I suppose this is good news for those dealers that make the cut, but it is bad news for the hobby overall. I'm also less likely to do business on the bourse floor of coin shows which means I probably won't go to shows as often.
But maybe we can still stop this sneaky provision!
Rep. Dan Lungren (R-CA) and Sen. Mike Johanns (R-NE) have introduced bills to repeal this provision of the health care bill (H.R. 5141/S. 3578, Small Business Paperwork Mandate Elimination Act). Whether you are a Republican or a Democrat, you should contact your members of Congress and ask them to support the repeal of this provision. This is a non-partisan issue.
The American Numismatic Association (ANA) has posted sample letters on their website from the Industry Council for Tangible Assets that collectors and dealers can send to their Congressmen.
To get the contact information for your Congressmen, go to http://www.house.gov/ and http://www.senate.gov/.
It literally took me less than 5 minutes to fire off emails to my Congressmen. So take a few minutes right now and send those letters.