September 25th 2023.
The IRS is coming for the ticket resellers who profited from the marked-up prices of tickets. A new law, part of the American Rescue Plan Act, will tax any individual or company who exceeded $600 in profits from the endeavor. The government has requested that ticket distribution companies, such as Ticketmaster and Stubhub, inform them of any substantial profits made through reselling tickets. This is a significant decrease from the original regulation, which required taxes to be paid on profits made from 200 or more transactions of $20,000 or more annually.
The new ruling is an effort to combat ticket scalpers who take advantage of high demand by charging exorbitant prices. To comply, the IRS has stated that ticket resellers must now file a 1099-K form if their gross payments for goods and services exceed $600. The Wall Street Journal reports that the IRS expects 44 million forms to be issued as a result of this added taxable income.
This news will be a relief to fans who have been subjected to outrageous prices. President Joe Biden has also taken measures to stop "junk fees" when purchasing tickets, ensuring that fans will know what they're paying for up front. Even though concert tickets are already hard enough to get, the new tax law and Biden's commitment to stopping surprise fees will give fans a fighting chance of getting tickets without breaking the bank.
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