INGLEWOOD, CALIFORNIA – AUGUST 09: EDITORIAL USE ONLY. Taylor Swift performs onstage during “Taylor Swift | The Eras Tour” at SoFi Stadium on August 09, 2023 in Inglewood, California. (Photo by Kevin Winter/TAS23/Getty Images for TAS Rights Management)
After a summer of booming ticket sales for various live events -- a new tax regulation says resellers might need to pay up.
Many people made significant profits by selling their tickets to popular live events like Taylor Swift's Era's Tour, Beyoncé's Renaissance Tour and even Inter Miami matches after soccer icon Lionel Messi joined the team.
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The previous threshold for tax reporting sat at $20,000 -- but now, the new regulation under the American Rescue Plan Act reduces that threshold to $600.
The regulation states that those who received more than $600 from e-commerce platforms -- like Ticketmaster, StubHub, Zelle, CashApp or Venmo -- must report their earning to the IRS.
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Ticketmaster posted these updated terms back in February, saying in part, "For fans who meet or exceed this $600 threshold, 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."
Critics of this new regulation include Florida Chief Financial Officer (CFO) Jimmy Patronis, who claimed the IRS was trying to target Taylor Swift fans during his IRS Roundtable in Doral on Wednesday.
"In this economy, people do everything they can to afford record-high inflation," Patronis argued. "If for some unforeseen circumstance occurs and you have to resell your concert tickets, you should be able to do so without any repercussions."
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Patronis also mentioned his Florida IRS Transparency Portal -- which he described in a press release as a portal for individuals or businesses to report potential discrimination by IRS operatives.
Last week, the CFO issued a letter to Venmo, PayPal, Cash App and Zelle demanding that they cease all operations to build technologies taxing Floridians from their small dollar transactions and for them to release all communications between their apps and the federal government.
