The Internal Revenue Service plans to examine jewelry companies for compliance with the Patriot Act, according to Cecilia Gardner, Jewelers Vigilance Committee executive director, who met with IRS agents recently.
“The IRS will be looking at all segments of our business for compliance,” she said. But she noted: “They aren’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 “they should understand that our business is not like others they have examined, and everyone’s business model is different.”
She noted that, with more jewelers buying gold, a lot more jewelers are now subject to the Patriot Act’s provisions (see box).