Sold Taylor Swift or Beyonce Tickets? Why You Need to Pay Attention to the IRS

As a small business owner, it’s important to stay on top of all tax requirements. If you sold tickets to some of the biggest events this year, like Taylor Swift’s Eras Tour or Beyonce’s Renaissance Tour, you might be in for a surprise. According to new 1099-K rules that took effect this year, ticketing platforms like Ticketmaster and StubHub are required to give the IRS information on users who sold more than $600 worth of tickets this year. In this blog post, we’ll explore what this means for small business owners who resell tickets and how they can stay on top of their tax obligations.

1. What are the new 1099-K rules and how will they impact small business owners who sell tickets?
The new 1099-K rules require ticketing platforms like Ticketmaster and StubHub to report to the IRS when users sell more than $600 worth of tickets in a year. This means that small business owners who resell tickets may need to report the income as taxable income on their tax returns. The impact of this rule will vary depending on how much money a business owner makes from reselling tickets, but it’s important to stay on top of the reporting requirements to avoid any penalties or fines.

2. Which events are the IRS targeting?
The IRS is targeting some of the biggest events this year, like Taylor Swift’s Lover Fest, Beyonce’s Formation Tour, and soccer tickets to see Lionel Messi. Resellers have accounted for more than 70% of ticket sales this year for these concerts and games. As a small business owner, it’s important to be aware of which events are being targeted and to keep accurate records of ticket sales.

3. How can small business owners stay on top of their tax obligations?
Small business owners who sell tickets should keep detailed records of their ticket sales and any expenses related to the sales, like fees paid to the ticketing platform or shipping costs. It’s also important to work with a tax professional who can help you navigate the reporting requirements and ensure that you are accurately reporting your income. By staying on top of your tax obligations, you can avoid any penalties or fines and keep your business running smoothly.

4. What should small business owners do if they receive a 1099-K from a ticketing platform?
If you receive a 1099-K from a ticketing platform, it’s important to review it carefully to ensure that all of the information is accurate. If there are any discrepancies, you should contact the ticketing platform immediately to resolve the issue. You should also work with a tax professional to ensure that you are reporting the income correctly on your tax return.

5. What are the penalties for not reporting ticket sales as taxable income?
Failure to report ticket sales as taxable income can result in penalties and fines from the IRS. The penalties can vary depending on how much income was not reported and how long it takes to resolve the issue. It’s best to stay on top of your reporting requirements to avoid any penalties or fines.

As a small business owner, it’s important to stay on top of all tax requirements. If you sell tickets to events like Taylor Swift’s Lover Fest or Beyonce’s Formation Tour, you may need to report the income as taxable income on your tax returns. By keeping accurate records, working with a tax professional, and staying on top of reporting requirements, you can avoid any penalties or fines from the IRS. Don’t let ticket sales be a surprise tax liability – stay informed and stay on top of your tax obligations!