(ConservativeFreePress.com) – A new law will lower the tax reporting threshold for revenues made through reselling tickets to sports events and concerts on e-commerce platforms. According to the new rule, the previous threshold for reporting, which was triggered when users made over $20,000 in revenue and made over 200 transactions, would now be lowered to only $600 and could be triggered from a single transaction. Event ticketing websites, including StubHub and Ticketmaster, will be required to provide the information of sellers that fit the new threshold in 2023.
Apart from reporting on the proceeds of sellers, e-commerce websites will also be required to send a 1099-K form to sellers, even in cases where they have not earned a profit. The sellers will only be required to pay taxes on tickets that they sold for a price higher than the one they originally bought the ticket for.
Those who have purchased and sold tickets in 2023 could be subject to the new reporting rule. This could affect many Americans as this year there were a number of big sporting events and concerts, including Taylor Swift’s Eras Tour.
The rule change is in part the result of the Biden administration’s new legislation and tax provision that was included in the American Rescue Plan Act. While originally the change was meant to go into effect in the 2022 tax year, it was later delayed so that the IRS would have additional time to accommodate the new change.
IRS Commissioner Daniel Werfel has stated that guidance would be issued for those taxpayers who receive a 1099-K form that relates to their taxes and ticket sales.
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