The IRS is going to know if you made big money reselling tickets for tours by the likes of Taylor Swift or Beyoncé

Taylor Swift performs onstage for night one of The Eras Tour.

John Shearer/TAS23

• A new law will require ticketing platforms to tell the IRS about users who made over $600 this year.
• Any sales over that amount will be considered taxable income by the IRS. 
• The Joint Committee on Taxation says that $9.7 billion over a decade is at stake.

A new law will make it harder for people to make money reselling concert tickets online.

The law, which was introduced as part of the American Rescue Plan Act, will require sites such as StubHub and Ticketmaster to hand over the data of all sellers who make more than $600 to the IRS.

Those sellers will then be required to fill out a 1099-K form, which is "a report of payments you got during the year," and their earnings will be subjected to tax income deductions.

Previously, the threshold needed before stating taxable income on ticket resale sites was far higher — a user needed to have received over $20,000 in revenue and have more than 200 transactions, The Wall Street Journal reported.

But this year the topic of ticket resales has made headlines, as prices for big events surged.

Tickets to see MLS side Inter Miami CF, for example, rose from an average of $30 to $255 online as fans rushed to see the team's new superstar Lionel Messi.

The average price for a Beyoncé concert ticket averaged $380, while fans wanting to see Harry Styles live needed to fork out an average of $400, the Journal reported.

Lionel Messi.

CHANDAN KHANNA/Getty Images

The resale of Taylor Swift's Eras Tour tickets has caused the most commotion, as hugely inflated prices, fake ticket sales, and site crashes angered her fanbase.

The average face-value price of a ticket for the tour is $254, Fortune reported. But after they were released, the average resell price was a staggering $2,183, per TicketIQ.

One Swiftie said she even saw some ticket prices for a Swift concert going for more than $30,000.

"I am disappointed in Ticketmaster and Live Nation for letting it get to this point of just being a complete frenzy," she previously told Insider.

Political opposition to the move has continued, with a bipartisan bill introduced in the Senate that would lower the IRS threshold to $10,000 in sales and 50 transactions.

However, the congressional joint committee on taxation has warned that doing so would reduce federal revenue by $9.7 billion over the next decade, the Journal reported.

Read the original article on Business Insider

from Business Insider https://ift.tt/zbxFMHc