Attorney Opinion Letters
Is it Legal to Store IRA Precious Metals in a U.S. Bank Safe Deposit Box?
Investing in precious metals and securing your future is an important step toward your retirement. We take our role in helping you very seriously, and we want to assure you we do not take this question lightly. As a company, we are in the habit of being very transparent with our customers about their investments. For more than 40 years, the Nuriani family has thrived in the gold and silver business because we consciously engage in values-based business practices that show respect and concern for our customers—as if they were family.
That is why we have asked several attorneys to provide opinions on the question of precious metals storage. They have provided letters validating the structure of the Augusta® Home Delivery™ Gold IRA in their opinions. HOWEVER, it is important that you consult with your own legal and financial advisors and recognize that the IRS has not offered clear guidance on the legality of home delivery or home or safe deposit box storage of American Eagle Coins and other precious metals. The IRS is not obligated to provide guidance on storage, so the attorneys we consulted believe it is wiser to store precious metals held within an IRA in a bank safe deposit box in the name of the LLC. You must fully understand the risks associated with such storage before opening an account with Augusta. If the IRS provides guidance in the future, you could lose your tax-exempt status and have to pay taxes and penalties. Because we believe in complete transparency, we have posted those attorney opinion letters for you to see (below).
Please note, these letters were prepared solely for Augusta, and sharing them with you in no way creates an attorney-client relationship between you and any of these attorneys or suggests that this type of investment is right for you. As with all speculative investments, there is a degree of risk involved. Again, it is important to consult with your own legal, tax, and investment professionals before opening an Augusta Home Delivery Gold IRA to ensure you fully understand the risks associated with it.
Attorney Opinion Letters Provided to Augusta
Michael Dallo, CPA, JD, LL.M. is a tax attorney and certified public accountant (CPA) of Dallo Law Group, a Professional Corporation. For over 10 years, Michael has zealously represented hundreds of clients in resolving tax disputes with the Internal Revenue Service and California taxing agencies, as well as developing sound tax positions and arguments to minimize their federal and state tax liability.
Andrew B. Gordon, founder of the Gordon Law Group, is a CPA and attorney, graduating from the University of Illinois with a BA and Masters Degree in Accounting, and a law degree from Chicago-Kent College of Law. Andrew previously worked in tax at a big-four public accounting firm and clerked at the IRS Office of Chief Counsel during law school. Andrew concentrates his legal work in the areas of tax controversies and compliance, corporate litigation, and FTC litigation and compliance.
Ms. Delia earned a B.A. from Southern Methodist University in Dallas, Texas and a Juris Doctorate from American University, Washington College of Law in Washington, D.C. with an emphasis on business and taxation law. She holds licenses from both New York and Maryland. She started her career as a commercial business law attorney in New York City at one of the most prestigious law firms in the nation, Paul Weiss, Rifkind, Wharton & Garrison. She represented multi-national corporations performing financial audits, tax implications analysis, commercial litigation and financial reporting and accounting procedure investigations. Ms. Delia’s knowledge and experience in tax resolution and financial management has helped many individuals and businesses resolve their IRS tax problems. Ms. Delia’s current firm, Delia Law, is licensed to represent taxpayers before the IRS in all 50 states under IRS Circular 230.
Chris Johnson is a 1994 graduate of Pepperdine University School of Law in Malibu, California. He was a Dean’s Scholar, and an extern at the legal department of Toyota Motor Sales, U.S.A., and for the Honorable Barry Russell, Judge of the U.S. Bankruptcy Court and Bankruptcy Appellate Panel. He is admitted to practice in all California state courts and the United States District Court, Central District. Mr. Johnson has been recognized as a “Top Attorney” by Pasadena Magazine for several years and has received a “Superb” 10.0 rating from Avvo. Prior to returning to private practice, he worked with U.S. Trust’s Pasadena and Los Angeles teams as a Senior Vice President and Senior Trust Officer, assigned to high net worth and ultra high net worth families in their generational wealth transfer planning and wealth planning needs.
Venar Ayar is the principal and founder of Ayar Law Group and focuses his legal practice on IRS and Michigan tax resolution for both businesses and individuals. He has personally handled a multitude of cases including defending tax audits, negotiating favorable settlements for back taxes, setting up tax payment plans, arranging release of tax liens and levies, defending criminal tax fraud cases and advising those with foreign bank accounts who have not complied with reporting requirements. He represents clients with multi-million dollar assets at stake as well as those with only thousands in assets. Prior to opening his Michigan practice, Venar was a tax attorney at RJS Law, southern California’s largest tax law firm. Before working there, Venar worked for several years in metro Detroit as a busy and successful solo tax law practitioner. Venar earned his Juris Doctor degree at the University of San Diego School of Law, which has one of the country’s top tax programs, and graduated Cum Laude. After graduation, Ayar continued his legal education at USD and earned an LLM degree, a Master of Law in Taxation. This is the highest degree available in tax and is held by a minuscule number of the country’s attorneys.
Mr. Sanai is a graduate of Harvard University and UCLA School of Law. Mr. Sanai has written articles for well-known publications such as the Washington Post and the Chronicle of Higher Education. Prior to owning his private practice, he acted as senior counsel for a law firm in Los Angeles, with a practice focusing on project finance, corporate finance and business transactions, with a particular expertise in international finance transactions.
Ms. Schantz is a graduate of James Madison University and the University of Miami School of Law. Licensed to practice law in Tennessee, Ms. Schantz has worked for firms such as Coehn Cooper Estep & Whiteman and Malloy and Malloy. She has authored a work published in the Miami Business Law Review, and serves as Co-Chairperson for the Distinguished Young Women of Music City.
Mr. Schreffler is a graduate of Ohio University and the University of New Hampshire School of Law. He is licensed to practice law in New Hampshire. He currently serves as in-house counsel, consultant, and legal advisor to various companies, and has previously worked for Beliveau Fradette and Gallant in New Hampshire.
If Many Tax Attorneys and CPAs Validate the Home Delivery Gold IRA Structure, Why Doesn't Everybody Have One?
As mentioned earlier, the IRS has not provided clear guidance on this structure, and until it does, the attorneys we consulted believe it is wiser to store precious metals in a bank safe deposit box in the name of the LLC, and it is important to understand the risks associated with such storage before proceeding. With control comes responsibility. You, as the owner of the IRA, must observe strict rules when handling the IRA precious metals. If the IRS or a tax court finds this structure to trigger a prohibited transaction or to otherwise not comply with the tax code, or if you fail to follow strict rules on handling the precious metals, the result could be a distribution of your IRA--and that can have serious tax consequences.
To move ahead confidently with the opening of an Augusta Home Delivery Gold IRA, it is very important that you consult with your own legal, tax and investment professionals, so you can fully understand the risks. Not every investor is comfortable with these risks. Those clients who have chosen the home delivery gold IRA are aware of and comfortable with the risks, and many of them believe it is even riskier to keep their IRA invested in the stock market or in other assets that are not close to home and difficult to reach in a crisis.
If you would rather not store your gold or silver in a safe deposit box in the name of the LLC, you can choose the Augusta® Gold IRA, a physical gold or silver IRA you can SEE, TOUCH & HOLD®. With this type of physical gold or silver IRA, your gold is stored in a highly-secure, non-government, threat-averse, insured private facility. With this option, you have a choice of locations, and the gold is then sent directly to the facility you choose, where you can get it fast in any disaster.
At Augusta, as trusted providers of the Augusta Home Delivery Gold IRA, we believe in full disclosure to you and all of our customers. We want to make sure you understand all of the details. That's why we have gone out of our way to consult with multiple attorneys on this subject, and why we strongly recommend that you consult your own tax and legal professionals.
Why do we place such an emphasis on disclosing to you the potential risks involved? Again, it all goes back to our values-based business practices and the fact that the Nuriani family—the builders of Augusta—have thrived in the gold and silver business for more than 40 years due to this philosophy. Quite simply, we follow the Golden Rule: Treat people the way you want to be treated. To us, that means treating you like family.