In a move that is set to impact event-goers and ticket resellers across the nation, the Internal Revenue Service (IRS) has introduced a new rule that mandates taxes on ticket resales exceeding $600. The rule is poised to have far-reaching consequences for both individual sellers and major ticket resale platforms.
As a matter of fact, the new tax regulation states that anyone who received over $600 from companies like Venmo, CashApp, Ticketmaster, or StubHub will now have to report those earnings to the IRS. Individuals and businesses involved in the resale of tickets for events, concerts, sports games, and other live gatherings will be required to report and pay taxes on any transactions that exceed $600 in value.
This rule targets both online and offline ticket resales, aiming to close what the IRS sees as a significant tax loophole. Obviously, this is a significant change from the previous rule, as the threshold applied to users with $20,000 in revenue and more than 200 transactions.
The IRS justifies this new rule by asserting that it will help close the tax gap and ensure that individuals and businesses involved in ticket resale are paying their fair share of taxes. It aligns with broader efforts by tax authorities to enhance compliance in the rapidly growing gig economy and e-commerce sectors.
However, not everyone is pleased with the IRS’s new rule. Critics argue that it could stifle the secondary ticket market, making it more difficult for individuals to resell tickets for events they can no longer attend. Some also express concerns about the practicality of tracking and enforcing taxes on millions of small-ticket resale transactions.
Stay tuned for more news!