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IRS Postpones Ticket Reseller Reporting Requirements For Now

November 28, 2023
in Entertainment
IRS Postpones Ticket Reseller Reporting Requirements For Now
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IRS postpones ticket reselling reporting requirements for a second time

Photo Credit: Kelly Sikkema

The IRS has postponed ticket reseller reporting requirements under Congress’ new tax requirements for e-commerce platforms. It’s the second time the IRS has postponed the new reporting requirement at the 11th hour.

The new tax requirement would see e-commerce platforms like Venmo, eBay, Ticketmaster, and any other online money transfer systems sending tax forms to the IRS and users who transact more than $600 in a single year. The result is that anyone who has sold concert tickets totaling more than $600 won’t get confusing new tax forms to file.

Despite the announced delay for the 2023 tax season, the IRS has its sights set on 2024 for the reporting requirement to finally roll out. It aims to start with a $5,000 threshold—well above the $600 requirement as stipulated by Congress. The IRS says the new two-year phase in will allow it to “address complex administrative challenges” while educating taxpayers as it moves closer toward the $600 limit in the future.

For 2023, anyone who received more than $20,000 or more than 200 transactions will receive a 1099-K form from Ticketmaster, StubHub, or any other reseller platform. The IRS says “tax compliance is higher when amounts are subject to information reporting, like the 1099-K.”

This marks the second time the IRS has delayed enforcement of this rule, after delaying in December 2022. At that time, the IRS said it was delaying the rule to “help smooth the transition and ensure clarity for taxpayers, tax professionals, and industry.”

Unfortunately, it looks like things will remain cloudy for another year. Tax rules haven’t changed, since you’re technically required to report a profit. But there won’t be a 1099-K from Ticketmaster to prove you sold those Eras tour tickets for $1,000+ a pop in 2023, either.

The IRS hasn’t disclosed how it reached the $5,000 reporting threshold for 2024 revenue, but many CPA groups supported raising the reporting threshold.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : DigitalMusicNews – https://www.digitalmusicnews.com/2023/11/27/irs-postpones-ticket-reseller-reporting-requirements-for-now/

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