This is a common question for many people when purchasing tickets on Ticketmaster. Ticketmaster often requests tax information such as your Social Security number or tax ID during the checkout process. However, many people are hesitant to provide sensitive personal information online. Here are some quick answers about whether or not you should give Ticketmaster your tax information and what they need it for:
Why does Ticketmaster ask for tax information?
Ticketmaster requests tax information in order to report ticket sales to the IRS and state tax authorities. As an event ticketing company, Ticketmaster is required by law to collect tax information and report gross ticket sales if they exceed a certain threshold.
IRS reporting requirements
The IRS requires third-party settlement organizations like Ticketmaster to file a Form 1099-K if they process over $20,000 in gross sales and over 200 transactions for a client in a calendar year. This form reports the gross sales to the IRS so they know how much income to tax the client on.
State tax reporting requirements
Most states also have reporting requirements for companies processing ticket sales within their jurisdiction. The threshold amounts vary by state, but Ticketmaster must collect tax IDs in order to submit the required sales reports and remit the taxes they collect.
What information does Ticketmaster request?
If you are purchasing tickets as an individual, Ticketmaster will ask for your Social Security number. This allows them to file a Form 1099-K matched to your SSN if you surpass the IRS reporting thresholds.
If you are purchasing tickets for a business, they will request your business’s Employer Identification Number (EIN) instead. This allows them to file a 1099-K using your business’s tax ID.
Why a full SSN/EIN is required
Ticketmaster requires your full 9-digit SSN or EIN. A partial tax ID or just the last 4 digits is not sufficient for their reporting needs. The IRS requires an exact ID match on 1099-K forms, so Ticketmaster needs your full tax ID number.
Is it safe to give Ticketmaster my SSN or EIN?
Many people are understandably wary of providing their SSN or EIN online. However, Ticketmaster does take precautions to protect your tax information:
- Encrypted data transmission – Information you submit is encrypted before being sent over the internet.
- Stored in secure databases – Full tax IDs are not displayed onscreen after entry and are stored in secure databases.
- Limited employee access – Only certain licensed employees have access to full tax ID information.
They are also legally required to keep your tax information confidential and only use it for income reporting purposes.
Potential risks
However, there are some risks to consider:
- Security breaches – Hacked customer data has affected many major companies.
- Employee misconduct – Rogue employees could improperly access the data.
- Sale of data – Customer information may be sold, stolen, or exposed during corporate changes.
Can I buy tickets on Ticketmaster without providing tax information?
It is possible to purchase some tickets on Ticketmaster without inputting tax information, but there are limitations:
- Limited ticket types – You may only be able to buy resale tickets from third-party sellers.
- Purchasing limits – There are restrictions on how many tickets you can buy.
- Fees – You may have to pay extra convenience or service fees.
So while you can buy some tickets without tax info, your options are more limited. And if your purchases exceed the reporting thresholds, you may have future tax complications.
What happens if I don’t provide my tax ID to Ticketmaster?
Here are some potential consequences if you do not provide tax information when requested:
- Purchase decline – Ticketmaster may decline your ticket purchase if you refuse to submit your SSN or EIN.
- Restrictions – You may only be allowed to purchase limited tickets and quantities without tax info.
- Tax liability – You may be personally liable for unpaid taxes on unreported gross sales.
- Penalties – The IRS may assess penalties or interest if income goes unreported.
Should I create a separate entity to purchase tickets?
Some high-volume ticket buyers choose to form a separate business entity like an LLC strictly for making ticket purchases. This can provide a layer of protection between your personal finances and taxes. There are some costs involved, but an attorney can advise you on whether this makes sense for your ticket activity.
Benefits of a separate business entity
- Privacy – Your personal SSN is not provided for large purchases.
- Liability protection – Your personal assets are shielded from business liabilities.
- Tax flexibility – Potential tax benefits depending on entity type.
Downsides to weigh
- Costs – Legal/filing fees to establish the entity.
- Administration – Need to follow proper business formalities.
- Tax compliance – Additional tax return filings.
Options if you don’t want to provide your SSN/EIN
If you are uncomfortable providing your tax ID to Ticketmaster, here are a few options:
- Avoid Ticketmaster – Only use other ticket sellers like AXS or local box offices.
- Use a trusted contact – Have someone you trust buy them with their ID.
- Limit purchases – Keep under 200 tickets and $20,000 in sales from Ticketmaster.
- Resellers – Buy from 3rd party exchanges like StubHub.
However, these options can be limiting. Buying directly through Ticketmaster provides the best selection and pricing in most cases.
Should I create an LLC just for buying tickets?
Creating an LLC strictly for purchasing tickets can be a wise move in some cases, but is an unnecessary hassle for casual buyers. Here are some factors to consider when deciding if an LLC is right for your ticket purchases:
When an LLC makes sense
- High volume purchases – Expect to exceed Form 1099-K thresholds.
- Reselling tickets – If you plan to resell a large volume of tickets.
- Multiple ventures – If you have other businesses/assets to protect.
Using your personal ID is fine for
- Occasional purchases – Buying tickets just for personal use.
- Staying under thresholds – Keeping purchases under 200 tickets/year or $20,000.
- First time buyer – If just testing out buying/reselling tickets.
An attorney can give you guidance on your specific situation. But an LLC makes the most sense for frequent high-volume ticket buyers and resellers.
Conclusion
Providing your tax ID to Ticketmaster carries some privacy risks. However, an SSN/EIN is required if you want full unrestricted access for buying tickets directly through their site. If you plan to resell tickets or buy quantities exceeding the 1099-K reporting thresholds, forming an LLC to purchase under is worth considering. For infrequent personal buyers, using your personal SSN is fine. Ultimately, you need to weigh convenience, privacy concerns, and tax implications to decide if providing your tax information to Ticketmaster is worth it for your situation.