If you are reselling tickets on Ticketmaster, you may be required to provide a tax ID number. This is because Ticketmaster needs to report ticket sales to the IRS for tax purposes. There are a few key reasons why you need a tax ID number when reselling tickets on Ticketmaster.
Tax Reporting Requirements
The main reason you need a tax ID number is that Ticketmaster has tax reporting requirements. As a marketplace facilitator, Ticketmaster is required by law to collect tax ID information from high volume sellers and report their sales to the IRS. This requirement comes from federal and state laws aimed at increasing tax compliance for online marketplaces.
Specifically, under Section 6050W of the Internal Revenue Code, online marketplaces like Ticketmaster must collect tax ID numbers from sellers with gross sales exceeding $20,000 and 200 transactions in a calendar year. The tax ID number is usually a Social Security number or Employer Identification Number (EIN).
Ticketmaster needs this tax information so they can send a Form 1099-K to high volume sellers, reporting their gross sales. The IRS also gets a copy of this tax form to ensure the seller pays any taxes owed on their sales. This allows the IRS to easily match up reported income versus taxes paid by resellers using online marketplaces.
When a Tax ID Number is Required on Ticketmaster
Given the tax reporting requirements, here are some key situations when you need to provide a tax ID number when reselling tickets on Ticketmaster:
- You exceed $20,000 in gross Ticketmaster sales within a calendar year
- You exceed 200 Ticketmaster transactions within a calendar year
- You are a business reselling tickets, regardless of sales volume
Essentially, if you are an individual reseller who exceeds the IRS transaction thresholds, or any business reselling tickets, you need to provide a tax ID number to Ticketmaster.
Acceptable Tax ID Numbers
What tax ID numbers can you provide to Ticketmaster when prompted? Here are the acceptable tax ID numbers:
- Social Security Number (SSN) – For individual resellers, you can provide your 9-digit SSN. This allows Ticketmaster to report your sales to the IRS associated with your SSN.
- Employer Identification Number (EIN) – If you are reselling tickets as a business, you can provide your business EIN. This is a 9-digit number the IRS issues for tax purposes to business entities.
Ticketmaster requires either an SSN or EIN so your ticket sales can be accurately reported to the IRS. Some key things to note:
- You should not provide someone else’s SSN
- You should only provide an EIN if you are a registered business
- If reselling as a business, only provide your EIN, not your SSN
When You Need to Enter a Tax ID Number
At what point in the Ticketmaster selling process do you need to enter a tax ID number? There are two main times when Ticketmaster will ask for your tax ID information:
- Upon initially listing tickets for sale – When you first list tickets for sale on Ticketmaster, you may be prompted to enter your tax ID number right away if you are a business seller.
- Once you exceed reporting thresholds – Even if not required upon initial listing, once your annual Ticketmaster sales exceed $20,000 or 200 transactions, you will be required to enter a tax ID number.
So when selling tickets, keep the reporting thresholds in mind. If you go over the limits, Ticketmaster will require you to enter an SSN or EIN before you can continue selling tickets on their marketplace.
How Ticketmaster Uses Tax ID Information
Why exactly does Ticketmaster require you to enter a tax ID number when you are reselling a high volume of tickets? Here are some key ways Ticketmaster uses your tax ID information:
- To generate an IRS Form 1099-K reporting your annual gross sales
- To report your sales activity to the IRS
- To comply with state and federal tax reporting laws
- To verify your identity and prevent fraud
- To send you tax documents for filing your own taxes properly
Providing an accurate tax ID number allows Ticketmaster to comply with IRS reporting rules. It also enables proper tax filing on your end as the ticket reseller.
Failure to Provide a Valid Tax ID Number
What happens if Ticketmaster asks you for a tax ID number and you fail to provide one? Here are some potential consequences:
- Ticketmaster may suspend your selling account until valid tax ID information is provided
- You may be subject to IRS tax notice or audit if reported income does not match your tax return
- You may be charged fees or penalties for incorrect tax reporting
- Your ticket sales proceeds may be subject to backup tax withholding
The main takeaway is that if Ticketmaster requires your tax ID number, you need to provide an accurate SSN or EIN. Failing to do so can result in your account being restricted from further ticket sales activities.
How to Enter Tax ID Information on Ticketmaster
The process for entering your tax ID number on Ticketmaster is straightforward:
- Access your Ticketmaster seller account online or via their mobile app
- Go to account settings and find the place to enter your tax information
- Enter your 9-digit SSN if selling as an individual
- Enter your 9-digit EIN if selling as a business
- Agree to Ticketmaster’s terms of use for reporting your sales
- Save your tax ID information in their system
Ticketmaster will then have your tax ID number on file. They will use it to generate Form 1099-Ks and report data to the IRS as required by law.
Frequently Asked Questions
Here are answers to some common questions about providing tax ID numbers to Ticketmaster as a ticket reseller:
Why is Ticketmaster collecting my personal information?
Ticketmaster is legally required by the IRS to collect tax IDs from high volume sellers to report gross sales. This is not optional for Ticketmaster to comply with federal tax laws.
Is my SSN or EIN safe with Ticketmaster?
Yes, Ticketmaster uses industry standard encryption to protect your sensitive personal information. Your SSN or EIN will only be used for tax reporting purposes.
What if I’m only selling a few tickets?
If you will not exceed $20,000 in Ticketmaster sales or 200 transactions in a calendar year, you do not need to provide a tax ID number.
Can I use my business partner’s SSN instead of an EIN?
No, if selling tickets for a business you must provide the EIN assigned to that business entity. Do not provide someone else’s personal SSN.
What if I don’t have an EIN for my business?
If reselling tickets for a business without an EIN, you should apply for one from the IRS first before providing tax information to Ticketmaster.
The Bottom Line
In summary, Ticketmaster requires a valid tax ID number when you exceed IRS reporting thresholds for ticket resales. This allows them to comply with federal tax reporting laws. If prompted by Ticketmaster, be sure to provide your personal SSN if selling as an individual or your official EIN if selling on behalf of a registered business. Accuracy is important, as failure to provide proper tax ID information can limit your account privileges and result in IRS issues down the road.