In a new development, ticket resellers who made considerable profits from selling tickets to high-profile concerts such as Taylor Swift, Beyoncé, and even Lionel Messi’s Miami games will have to disclose their earnings to the Internal Revenue Service (IRS).
Key Takeaway
Ticket resellers who have sold over $600 worth of event tickets on platforms like StubHub or Ticketmaster this year must now report their earnings to the IRS. The updated 1099-K form includes provisions for income received from credit and debit cards, gift cards, third-party payment networks, and online marketplaces. This requirement aims to regulate the income generated by reselling tickets for high-profile events featuring artists such as Taylor Swift, Beyoncé, and Lionel Messi.
New Reporting Requirements for Ticket Resellers
Under the updated regulations for the 1099-K form, individuals who have sold more than $600 worth of tickets this year on platforms like StubHub or Ticketmaster must now include these earnings as taxable income.
The 1099-K form specifically targets payments received from transactions made through credit and debit cards, gift cards, as well as through third-party payment networks and online marketplaces. This classification aptly applies to resellers who use platforms like Ticketmaster and StubHub to sell event tickets.
A Dominant Year for Ticket Resellers
This year, ticket resellers have held a position of great influence in the live events industry. Whether it was reselling tickets back to dedicated Taylor Swift fans during her Eras Tour or providing an opportunity for Queen Bey enthusiasts to attend her Renaissance Tour, these resellers commanded significant attention.
Even tickets for Lionel Messi’s highly anticipated soccer games were being resold at notably higher prices.
While some may see this development as an additional burden imposed by the IRS, others view it as a form of justice for those who have been forced to shell out exorbitant sums to scalpers for coveted event tickets.
