Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Biden’s IRS Is Mining for Gold

Commodities / Gold and Silver 2021 Dec 10, 2021 - 12:56 PM GMT

By: MoneyMetals

Commodities

The Biden administration is moving aggressively to raise revenues by any means necessary – including going after precious metals held in so-called “home storage” or “checkbook” retirement accounts.

The IRS recently nailed a couple with a $300,000 tax bill for holding gold coins designated as Individual Retirement Account (IRA) assets – but stored in their home safe rather than at a depository.

The couple had unfortunately relied on marketing material from a promoter who claimed that setting up a limited liability company owned by their self-directed IRA would allow them to store their coins at home instead of through a third-party custodian.


In McNulty v. Commissioner, the Tax Court ruled against the couple and in favor of the IRS. The Court held that when individuals take direct possession of IRA assets, they have effectively taken IRA distributions which may be subject to taxes and penalties.

The good news for those who hold physical precious metals within an IRA is that the Tax Court affirmed the legality of Self-Directed IRAs.

It remains perfectly legal to hold most gold, silver, platinum, and palladium bullion products inside a tax-advantaged account – provided the assets are held by a trustee that meets IRS requirements for custodial arrangements.

Over the years, Money Metals Exchange has helped thousands of clients set up IRS-approved precious metals IRAs. We have also warned against schemes that supposedly take advantage of loopholes that allow home storage of IRA assets.

If this was once a “gray” area of the law, it’s now black and white. The IRS can and will go after you if you fail to set up your IRA through a legitimate account custodian and store the metals at a depository.

Of course, there are good reasons why you may wish to hold physical precious metals at home in a safe or in a secret location not accessible by any third parties.

But if you attempt to claim your personally held bullion as IRA assets, you’re inviting tax trouble.

As time goes on, U.S. taxpayers will find themselves under increasing pressure to make sure every single line on their return can withstand an IRS audit.

In testimony before Congress last week, Treasury Secretary Janet Yellen admitted that ramped-up IRS enforcement will serve as a revenue-raising tool for the Biden administration.

Yellen had faced grilling by Republican lawmakers over her claims that the Biden’s “Build Back Better” programs are “paid for” – meaning they won’t add to the budget deficit. But the Congressional Budget Office’s own scoring shows those claims to be false.

Yellen’s response? The CBO failed to account for the expected revenue increases that will flow into Treasury coffers thanks to an expanded and emboldened IRS.

The Biden administration plans to hire tens of thousands of new IRS agents with a mandate to squeeze taxpayers for more dollars.

Especially vulnerable are small business owners and independent contractors, cryptocurrency holders, and those with sizeable retirement account assets.

The Tax Code is extraordinarily complex. The wealthy and large corporations can afford to hire accountants and lawyers to keep them out of trouble. The typical middle class taxpayer is at the mercy of the IRS.

Nevermind that IRS agents often misapply or misrepresent the law – either because they don’t understand it or they believe generating revenue is more important than enforcing income tax provisions fairly. The message being sent loudly and clearly by the Treasury Secretary is that IRS agents exist to bring home the cash.

Many taxpayers actually end up paying more in taxes than they legally owe because they are afraid of the IRS and fail to take legitimate deductions. Or they don’t know they are eligible for them in the first place.

As long as you are operating within the letter of the law – and ideally have your tax returns prepared and signed by an accountant or lawyer – there’s no good reason not to pursue every single dime of tax savings to which you are entitled.

But with audit risk on the rise, keeping records and receipts as proof of every tax move you make is essential.

One move still well worth considering is putting new or existing IRA assets into physical precious metals. It’s a straightforward process to convert an IRA from a brokerage account containing financial instruments into an IRS-approved Self-Directed IRA containing physical bullion. (Here’s a step-by-step guide on how to get started.)

A precious metals IRA protects your wealth against the twin threats of taxation and inflation. Right now, unfortunately, both of these threats are on the rise.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2021 Stefan Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in