Per the American Rescue Plan Act of 2021, the U.S. Internal Revenue Service (IRS) changed the reporting thresholds for e-commerce sales such that Ticketmaster is required to issue 1099-K forms to sellers who are subject to U.S. tax law and who earn more than $600 annually from sales on a Ticketmaster marketplace (including Account Manager). Sellers who listed tickets for sale on Ticketmaster were notified of this requirement in 2023.
Initially, the $600 threshold was scheduled to go into effect on January 1, 2023; however, the IRS recently announced that the federal reporting threshold for 2023 would remain at more than 200 transactions totaling more than $20,000. For the 2024 tax year, the IRS has indicated that they are planning for a $5,000 threshold; but the 2024 federal threshold has yet to be confirmed and is subject to change.
What Does This Mean for Fans?
The IRS and some U.S. state tax authorities may require Ticketmaster to report the amounts your fans earn from selling or reselling tickets on any of our U.S. marketplaces. Ticketmaster is required to file a Form 1099-K report with the IRS when the gross revenue received from transactions on our U.S. marketplaces meets or exceeds federal or state thresholds in a calendar year per seller.
For fans who meet or exceed federal or state thresholds, Ticketmaster will provide a copy of the Form 1099-K. Generally, fans should expect to receive this form by January 31 of the following calendar year. On this form, Ticketmaster is required to include the gross amount of all reportable transactions the fan made during the calendar year. The gross amount may include the price of the tickets resold, as well as fees and other amounts related to ticket sales, without adjustments for credits, discounts or refunds. Fans who do not reach federal or state thresholds in any calendar year will not receive a Form 1099-K from Ticketmaster.
Although many U.S. states may also require Ticketmaster to report earnings on transactions made on our marketplaces, state earning thresholds may differ from the federal requirement. Ticketmaster will provide fans a copy of any mandatory state earning forms.
Ticketmaster will provide fans with a transaction amount for each sale via the “Order Sold” email confirmation. Fans may also see a history of their sold transactions in their “My Listings” page on Ticketmaster.com.
What Does This Mean for Event Organizers?
Fans will be notified of this requirement when they sell on a Ticketmaster marketplace (including Account Manager). No action is required on the part of Event Organizers to communicate this change.
What Information Will Fans Be Required to Provide to Ticketmaster?
In accordance with applicable laws, for tax purposes, Ticketmaster collects certain taxpayer information, including Legal Name, Address, Phone Number, and Tax Identification Number (TIN), from individuals and entities considered U.S. persons that sell tickets on our marketplaces. Tax Identification Numbers (TIN) include a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), for fans selling as an individual or an Employer Identification Number (EIN), for those selling through a legal entity. To avoid issues with processing, a fan’s legal name must match the name they use for tax purposes, and all fields must be entered accurately.
Ticketmaster will never ask a fan to provide this information over the phone or via email.
If a fan fails to provide their taxpayer information, they will not be eligible to receive payment until their information is provided. Fans who are not subject to U.S. tax law must confirm their status when prompted in order to receive payment.
How will fans’ information be handled?
Once a fan logs in and submits their taxpayer information on our secure Seller Tax Details page, Ticketmaster will submit the provided information to the IRS for verification. Fans will receive a confirmation email once Ticketmaster receives verification from the IRS. Ticketmaster will maintain the taxpayer information in a secure database. When required, Ticketmaster will provide fans with a copy of any mandatory state forms.
Additional questions?
For questions specific to Ticketmaster sales, please refer fans to our 1099-K Form FAQ on our Help Page. For more information about the Form 1099-K, please refer to https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions.
