The Internal Revenue Service plans to examine jewelry companies for compliance with the Patriot Act, according to Cecilia Gardner, Jewelers Vigilance Committee president, CEO and general counsel, who met with IRS agents yesterday.
"The IRS will be looking at all segments of our business for compliance, in all parts of the country," she said. "My takeaway from this meeting is that these examinations will start very soon."
She added: "The IRS isn’t really interested in fines or penalties. But they do want people to comply and to understand what their obligations are. Their view is that the industry has had plenty of time to adjust to this reality."
Gardner said she told the agents that "they should understand that our business is not like others they have examined, and everyone’s business model is different."
Gardner noted that her organization puts out a guide to Patriot Act compliance, available at www.jvclegal.org.