Tax collectors are targeting those who make a profit by reselling online tickets.
A new law means there will be increased scrutiny from the Internal Revenue Service this tax season for those who sell on sites like TicketMaster.
Now these platforms must inform the IRS about anyone who makes more than $600 in revenue from reselling tickets, Fox Business reported.
Before the new law went into effect, companies only had to report to the IRS those that generated more than $20,000 in revenue from 200 or more transactions.
Although platforms are now required to send a 1099-K form regardless of whether a profit was made, taxes will only be collected from the seller if the ticket was sold for more than the original purchase price.
The law comes into effect amid public outrage over how difficult and expensive it has become to get tickets to some popular concerts.
Due in part to the proliferation of for-profit online resellers, fans have had difficulty getting tickets to highly anticipated tours from artists like Taylor Swift and Blink-182.
The new rule was included as a revenue-generating measure in the American Rescue Plan Act passed in December 2021.
Although it was originally scheduled to take effect last year, the rollout was delayed by the Biden administration so the IRS had more time to prepare.
IRS Commissioner Daniel Werfel has announced that the agency will provide additional guidance to ticket resellers who receive 1099-K forms from the agency.
The future of this new rule is uncertain as two separate pieces of proposed federal legislation, if passed, would increase the reporting threshold.
TheThe Jobs Act proposed by the House Ways and Means Committee would restore the original threshold of $20,000 in earnings and more than 200 transactions.
The future ofIt remains uncertain that tax revenues could fall by almost $10 billion within a decade.
There is another proposal called the “Red Tape Reduction Act” in the US Senate that sets the reporting threshold at $10,000 in sales and 50 transactions.
Ticketmaster did not immediately respond to The US Sun’s request for comment.