(Kitco News) - A newly formed committee, comprised of a former U.S. Mint director, rare coin and bullion dealersandstate and government relations experts, is looking to challenge Section 9006, a portion of the health-care legislation which has drawn objections from U.S. bullion and coin dealers due to its cost implications.
The Gold and Silver Political Action Committee ( PAC ) has made Section 9006 one of its significant objectives, Philip Diehl, former director of the U.S. Mint told Kitco News.
"There are a lot of industries that are opposed to these new reporting requirements, so we will be working with a lot of industries to get those new reporting requirements reversed," said Diehl. He noted the PAC is looking to have the reporting requirements overturned in the next year.
The provision is Section 9006 of the Patient Protection and Affordable Care Act. As of January 2012, it will require entities, including U.S. bullion and coin dealers, to file a Form 1099 with the Internal Revenue Service whenever they make transactions paying out $600 a year to another party.
The PAC's first official meeting occurred this past September. The creation of the committee was prompted by the enactment of IRS Form 1099 reporting requirements and other proposed legislation that could create tremendous burdens on dealers as well as collectors and investors, said Diehl.
"They are extraordinarily burdensome, both on dealers and on individuals because they require strict reporting by any individual organization that has sales of numismatic or precious metal coins of only $600 a year. There are very few sellers of products that are going to escape this new reporting requirement and that applies across a wide range of products," said Diehl.
The provision has drawn protests from a wide range of business groups who object to their increased costs from collecting and reporting the data. This includes shop owners, truckers, farmers and self-employed Americans.
The PAC is an effort to support candidates that are supportive of our issues, said Diehl. "Issues relating to precious metals and numismatic coins and also when necessary to oppose members of Congress and other federal elected officials, who are hostile to our causes," he said.
For more information on the Gold & Silver Political Action Committee: http://www.goldandsilverpac.com/
By Daniela Cambone of Kitco News email@example.com
Allen Sykora Contributed to this report