Ticketmaster sending sellers 1099s

[PromoTheRobot]

4 hours ago, Just Jack said:

Side note, did anyone else see a deposit from TM in your bank account this morning, looking like the paid you for your sold tickets?  I thought they weren't doing that until after games were played. 

 

I just checked. Me too.

[Greybeard]

On 2/24/2022 at 3:50 PM, Tuco said:

I'm still stuck on Aunt Suzie's birthday gift. Even though it isn't exactly related to Ticketmaster, it still falls under the same new laws. So Aunt Suzie gives you $1,000 for your birthday. The law says this isn't taxable because the amount is under the taxable threshold for birthday presents from Aunt Suzie. But Aunt Suzie is hip. She's not like grandma. Aunt Suzie is with the times and she uses venmo to send you the same $1,000 gift she's sent you for the last 15 years.

 

Enter the IRS. Now that Aunt Suzie used venmo, there will be a 1099 form generated. You may get this form and throw it out since you know it's not really taxable. Yet when your taxes are filed, the IRS will know you omitted this 1099 form in the amount of $1,000 from your reported income. They won't know it's not taxable, and they won't really care. They will just know that your income listed on your tax form doesn't match theirs.

 

Now in typical IRS fashion, they will presume you guilty of tax evasion. They will send you a bill for the $70 or whatever your tax on $1,000 comes to, plus a generous penalty and late fee, etc. You will now have been judged by an agency of the federal government and found guilty.

 

Fortunately, this is America, and you will be given the opportunity to prove your innocence. This will take a bit of your time and maybe cost you some money, but hey, it's a small price to pay for freedom. Eventually you may prove your innocence and can then claim a small victory against the IRS and their strong arm. Yay.

 

Of course you can avoid all this trouble by listing the $1,000 on your tax return, and going through the trouble of proving it was just a birthday gift from Aunt Suzie ahead of time. Or you can persuade Aunt Suzie to mail you a check like she did for so many years. Although the IRS has already tried, and will most likely eventually succeed in treating that $1,000 bank deposit in the same manner.

 

We didn't really think the IRS was increasing its workforce by 15% to go after GM and Haliburton did we? And none of the above used to happen unless Aunt Suzie's and your other venmo transactions totaled over $20,000, or more than 200 transactions. But starting in 2022 that threshold drops to $600 and a single transaction. Yet somehow there are people who think this is all a good thing because, hey, we need roads to drive and new STADIA (Bills related!), and have to pay our share.

               Remember when Carmela Soprano goes to the bank and deposits $9900.  When the bank exec says, if it was $10000 the bank would have to inform the govenment.  She smiles and says "Oh really,"

               I believe the threshold is now $600 and it is not per transaction, it is for the entire year.

 

https://www.cbsnews.com/news/irs-bank-account-update-change-treasury-10000-dollars/

       

[DrDawkinstein]

1 minute ago, Greybeard said:

               Remember when Carmela Soprano goes to the bank and deposits $9900.  When the bank exec says, if it was $10000 the bank would have to inform the govenment.  She smiles and says "Oh really,"

               I believe the threshold is now $600 and it is not per transaction, it is for the entire year.

 

https://www.cbsnews.com/news/irs-bank-account-update-change-treasury-10000-dollars/

       

 

Also, breaking deposits up into smaller amounts to try to avoid that reporting is called Structuring, and will get someone caught quicker and in more trouble than if they just deposited the whole thing at once.

[Don Otreply]

On 1/22/2022 at 1:00 PM, Billzgobowlin said:

This is the new wonderful US that is eliminating the loop holes for middle class people and small businesses.  No politics intended

Yet no one seems to care when corporations don’t pay taxes to use the nation’s infrastructure…., that you and I pay for, for our entire lives…, irritating as hell isn’t it…, 

[Bob in STL]

On 1/22/2022 at 12:21 PM, Motorin' said:

 

You don't need to file any paperwork to run a business. 

 

You have your purchase order, and your sale order. If the sale is higher than the purchase you made profit. If it's less you had a loss. 

 

 

Oh, so labor and overhead no longer factor in?  We can ignore that?    Great advice.  NOT.  

[Spiderweb]

On 1/22/2022 at 10:15 AM, Bob Chandler's Hands said:

Oh, believe me, I know how much I contribute. And the % gets higher every year.  So glad Uncle Sam is reaching into every couch cushion to take more.

 

Just give it a rest.

[Motorin']

3 hours ago, Bob in STL said:

Oh, so labor and overhead no longer factor in?  We can ignore that?    Great advice.  NOT.  

 

I'm sorry, you may have missed the context completely. I'm not telling anyone how to run a successful business. The point was how season ticket purchases can count as a business for tax purposes. 

 

Unless you're suggesting there's labor and overhead that can be deducted from the purchase of tickets as well. I'm all ears. 

Edited August 9, 2022 by Motorin'

[ExiledInIllinois]

On 1/22/2022 at 12:17 PM, billsfanmiamioh said:

This is BS. I’ve consistently lost money every year I’ve been a season ticket holder. At one point I had 10 tickets during the drought. I’ve lost thousands and now the IRS wants a piece? BS

You claimed the losses, right?  Got a tax break?

[GoBills808]

On 1/22/2022 at 10:45 AM, Ed_Formerly_of_Roch said:

Sure the IRS could care less if you call it a business or not.  But they do care about money, whether it's made from a business or personal income.

 

All the IRS cares about is following the money and if they see money flowing to you that's income and you need to pay taxes on it.   That's all they care about and in today's digital world, it's much easier to follow the money. 

 

Did you get a check from Aunt Suzy for Christmas, that's income.  If you have a garage sale, that's income that you're supposed to report, but fortunately for many, the IRS isn't able to easily find many things.  But now you're dealing with a large company in Ticketmaster and they need to show where the money is flowing to.

Unless your Christmas check from Aunt Suzy is over $16k you don't have to report it or pay taxes

[Bills fan since 87]

13 hours ago, Just Jack said:

Side note, did anyone else see a deposit from TM in your bank account this morning, looking like the paid you for your sold tickets?  I thought they weren't doing that until after games were played. 

 

Yep, i was curious about that too

[Ed_Formerly_of_Roch]

10 hours ago, GoBills808 said:

Unless your Christmas check from Aunt Suzy is over $16k you don't have to report it or pay taxes

 

That's true, I should have left that part out.

[cba fan]

On 1/22/2022 at 12:17 PM, Motorin' said:

 

What's to stop people from declaring a loss and paying less overall tax? 

 

Why not treat it as a side business and reduce your taxes due the the loss?

for these situations IRS usually does not recognize a loss. It only lets you deduct your cost and valid expenses related to the sale down to zero. Same on gambling winnings.  Best to ask your tax preparer expert.

[Mr. WEO]

Pick another resale site.  

[Motorin']

2 minutes ago, cba fan said:

for these situations IRS usually does not recognize a loss. It only lets you deduct your cost and valid expenses related to the sale down to zero. Same on gambling winnings.  Best to ask your tax preparer expert.

 

Yeah, it boils down to whether you consider the season ticket purchase a small business. 

 

And the IRS definitions isn't clear cut. It basically says, its a business if the primary purpose of the seasons ticket purchase is an attempt to make money. 

 

So if you use most of them for personal use, and sell a few, it isn't going to fly as a business. And so you can't deduct your losses... 

 

But if your primary purpose is to make money, and you sell most of the tickets, but still have a net loss, it can be claimed as a small business and deducted. 

[Malazan]

On 1/22/2022 at 11:39 AM, Steptide said:

Well they gotta pay for all those stimulus's somehow 😅. They're actually going after venmo too. Starting this year, venmo transactions have to be reported to the irs. You can't expect the government to let money move without them getting a piece 🙄

 

Unless you're a billionaire..