Goldline International Under Investigation As New Tax Law Is Debated
ABC News reported two hot stories developing in the gold coin biz this week including the launch of an investigation by California authorities into Glenn Beck-backed Goldline International and a lesser known dealer, Superior Gold Group, and outrage amongst gold coin sellers over a new tax law amendment that includes coin and bullion transactions.
By Melissa Pistilli—Exclusive to Gold Investing NewsABC News reported two hot stories developing in the gold coin biz this week including the launch of an investigation by California authorities into Glenn Beck-backed Goldline International and a lesser known dealer, Superior Gold Group, and outrage amongst gold coin sellers over a new tax law amendment that includes coin and bullion transactions. The new tax law was slipped into the recently passed Patient Protection and Affordable Care Act as a way to help pay the bill. “Those already outraged by the president's health care legislation now have a new bone of contention — a scarcely noticed tack-on provision to the law that puts gold coin buyers and sellers under closer government scrutiny,” wrote ABC's Rich Blake Wednesday. Section 9006 of the new health care legislation is intended to expand the scope of Form 1099, which is currently used to report miscellaneous income of independent contractors and the self-employed. Beginning at the first of the year 2012, the forms will also be used by the IRS to track purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year, including coins and bullion. Under the new law, every time a dealer buys more than $600 of coins or bullion off a non-dealer, they will have to report that transaction to the government.
Blake reports that Rep. Daniel Lungren (R-CA) is working to repeal the tax law. "Large corporations have whole divisions to handle such transaction paperwork but for a small business, which doesn't have the manpower, this is yet another brick on their back," said Lungren. "Everyone agrees that small businesses are job creators and the engine which drives the American economy. I am dumfounded that this Administration is doing all it can to make it more difficult for businesses to succeed rather than doing all it can to help them grow." Earlier in the week, ABC News reporters Matthew Mosk, Joseph Rhee and Brian Ross broke the story of the joint investigation by the Los Angeles County DA and the Santa Monica Attorney's offices into Goldline International's business practices.