Rules
Paying Cash for Bullion: A Buyer's Counter Checklist
Paying cash for bullion over $10,000 means ID, a Form 8300 filed by the dealer and a January 31 statement. A buyer's checklist for the counter and after.
What to take away
- Expect to show a driver's license or passport and give your name, address, and taxpayer identification number.
- The dealer files Form 8300 with the IRS, and you sign nothing.
- Currency and coins count as cash. Checks and money orders count only at a face amount of $10,000 or less.
- Paying in pieces within 24 hours does not avoid the report, and splitting payments on purpose is a crime.
- The dealer owes you a written statement by January 31 of the following year.
Before you go: choose how to pay
The payment method decides whether a report follows, so settle it before you reach the counter. Under Internal Revenue Code section 6050I, a business that receives more than $10,000 in cash in one transaction, or in two or more related transactions, must file Form 8300.
The IRS explains the mechanics in Publication 1544. The table shows which of your payment options count as cash.
| How you pay | Counts as cash for Form 8300? |
|---|---|
| Currency and coins | Yes |
| Cashier's check, bank draft, traveler's check or money order, face amount of $10,000 or less | Yes |
| The same instruments with a face amount over $10,000 | No. A single cashier's check for $12,000 is not treated as cash for this purpose |
| Wire | No Form 8300 is required |
What Counts as Cash
Payment method
- U.S. currency and coins
- Yes
- Cashier's check under $10,000
- Yes
- Money order under $10,000
- Yes
- Personal check
- No
- Wire transfer or ACH
- No
- Credit or debit card
- No
Counts as cash?
- U.S. currency and coins
- Cashier's check under $10,000
- Money order under $10,000
- Personal check
- Wire transfer or ACH
- Credit or debit card
The trigger is the payment method and the amount, not the product. A pawnbroker, a jewelry store, or a refinery counter taking cash falls under the same obligation as a coin shop.
What to bring and what to say
The filing is the dealer's duty, not yours, but the details on the form are yours. Run through this list before you leave home:
- Decide how you will pay, using the table above
- Bring a driver's license or passport
- Know your name, address, and taxpayer identification number
- Pay in one transaction, not in pieces to stay under $10,000
- Plan to keep the written statement beside your purchase receipt
You will be asked for the driver's license or passport. That is a normal part of a compliant counter sale, and a dealer who waves it off is taking on risk that eventually shows up in an audit.
If you refuse to give a taxpayer identification number, the dealer still files. The form has a box for that case. A dealer cannot decline the sale and move on once cash over the threshold has changed hands, so refusing does not stop the report.
The counter, step by step
A buyer who pays $16,000 in hundred dollar bills for four one ounce gold coins goes through a short sequence and signs nothing. The dealer does the paperwork, and the buyer's part is to provide accurate details.
- The dealer counts the cash.
- The dealer asks for a driver's license.
- The dealer completes Form 8300 at the counter.
- The dealer mails the form to the IRS within 15 days.
- The dealer gives the buyer a written statement by January 31 of the following year.
Cash vs Wire Purchase
Cash purchase
- Payment method
- $16,000 cash
- Form 8300 required
- Yes
- ID shown
- Driver's license
- Metal received
- Four 1 oz gold coins
- Later tax treatment
- Identical
Wire purchase
- Payment method
- Wire transfer
- Form 8300 required
- No
- ID shown
- Not required
- Metal received
- Four 1 oz gold coins
- Later tax treatment
- Identical
If the same buyer had paid by wire, no Form 8300 would be required. The metal would be identical, and the tax treatment on a later sale would be identical. Only the payment method changed the paperwork. The payment, shipping and receipt checklist covers the rest of the order.
If the payment arrives in pieces
Splitting a purchase does not avoid the report. If a buyer divides a $15,000 purchase across two days to dodge the threshold, the dealer must treat those payments as related and file. The IRS instructions for Form 8300 spell out the 24 hour rule.
A dealer who accepts $9,800 in cash today and $9,800 tomorrow from the same buyer has a filing obligation, not a loophole.
The sharper risk for the buyer is structuring. Under 31 U.S.C. section 5324, breaking a transaction into pieces to avoid a reporting requirement is a crime, and the government does not need to prove the metal purchase was illegal. A buyer who pays $9,900 in cash three days running to stay under the line has created the offense.
Structuring is one item on the list of precious metals buying mistakes, which also covers other ways a purchase goes wrong.
After the purchase: the statement and the record
The dealer must give you a written statement by January 31 of the following year. It must also keep a copy of each Form 8300 for five years from the date of filing. Keep your own copy of the statement with your purchase receipt.
Form 8300 is an information return about a cash payment, not a tax bill. Any tax owed comes from a later sale, and that gain is reported on Schedule D. The Form 8949 guide covers how to report a sale of physical gold.
Checking the dealer and the state
Form 8300 is federal and applies in every state. State law adds its own layer, and sales tax varies too. The US sales tax on bullion guide sets out the state picture.
A buyer moving a large cash purchase across state lines should also check the dealer's licensing status. The steps for evaluating bullion dealers in New York City cover licenses, complaints and COMEX ties.
