Skip to main content

Unbiased. Straight Facts.TM

Business

New IRS rule targets ticket resale market

Sep 27

Share

The Internal Revenue Service is cracking down on people reselling concert tickets for profit. A new IRS regulation will require ticket-reselling platforms like SeatGeek and StubHub to file information on any users who resold tickets for $600 or more this year.

The new rule comes as a record number of event tickets were sold in 2023. Fans shelled out thousands of dollars for tickets to see their favorite stars.

Those who resold tickets to events like the Taylor Swift Eras Tour, Beyonce’s Renaissance World Tour, or to see soccer star Lionel Messi will be subject to the new regulation.

The average Taylor Swift concert ticket sold for $1,600 on SeatGeek. If a person sold just one ticket at that price, they should expect to receive a 1099-K tax form this year.

Before 2023, ticket-reselling platforms only had to report sellers with revenues of at least $20,000 over 200 or more transactions.

Under the new IRS regulation, $600 is the threshold with no minimum number of transactions. Because of the drastic difference, the IRS expects to collect taxes from quadruple the number of sellers from years past.

This new IRS regulation is part of President Joe Biden’s American Rescue Plan Act of 2021. The Biden administration advocated for the tax rule, calling it a crackdown on the wealthy. However, Republicans argue the lower threshold will impact middle class Americans.

There are bills in both the House and the Senate that would increase the $600 threshold, but those efforts have stalled so far.

Tags: , , , , , , , , , ,

THE I-R-S IS CRACKING DOWN ON PEOPLE  WHO ARE RESELLING CONCERT TICKETS FOR PROFIT.

A NEW I-R-S REGULATION WILL REQUIRE TICKET-RESELLING PLATFORMS SUCH AS SEATGEEK AND STUBHUB TO FILE INFORMATION ON ANY USERS WHO RESOLD TICKETS TO THE TUNE OF 600 BUCKS OR MORE THIS YEAR.

THE NEW RULE COMES AS A **RECORD NUMBER OF EVENT TICKETS WERE SOLD THIS YEAR.

FANS SHELLED OUT THOUSANDS OF DOLLARS FOR TICKETS TO SEE THEIR FAVORITE STARS.

AND THOSE WHO RESOLD TICKETS TO EVENTS LIKE THE TAYLOR SWIFT ERAS TOUR – BEYONCE’S RENAISSANCE TOUR — OR TO SEE SOCCER STAR LIONEL MESSI – WILL BE SUBJECT TO THE NEW REGULATION.

TO PUT THE PRICES IN PERSPECTIVE- THE AVERAGE TAYLOR SWIFT CONCERT TICKET SOLD FOR 16 HUNDRED DOLLARS ON SEATGEEK.

WHICH MEANS IF A PERSON SOLD JUST ONE TICKET AT THAT PRICE –

THEY SHOULD EXPECT TO RECEIVE A “10-99-K TAX FORM” THIS YEAR.

BEFORE THIS YEAR – TICKET RESELLING PLATFORMS ONLY HAD TO REPORT SELLERS WITH REVENUES OF *20 THOUSAND DOLLARS OR MORE ACROSS 200-PLUS TRANSACTIONS.

NOW – 600 DOLLARS IS THE THRESHOLD, WITH NO MINIMUM NUMBER OF TRANSACTIONS.

BECAUSE OF THE DRASTIC DIFFERENCE  –

THE I-R-S EXPECTS TO COLLECT TAXES ON **QUADRUPLE THE NUMBER OF SELLERS FROM YEARS PAST.

THIS NEW I-R-S REGULATION WAS PART OF PRESIDENT JOE BIDEN’S “AMERICAN RESCUE PLAN ACT.”

THE BIDEN ADMINISTRATION ADVOCATED FOR THE TAX RULE, CALLING IT A CRACK DOWN ON THE WEALTHY.

BUT REPUBLICANS ARGUED – THE LOWER THRESHOLD WOULD IMPACT MIDDLE CLASS AMERICANS.

THERE ARE BILLS IN BOTH THE HOUSE AND THE SENATE THAT WOULD INCREASE THE THRESHOLD.

BUT THOSE EFFORTS HAVE STALLED SO FAR.

By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.