Beginning January 1, 2022, the IRS has updated its 1099-K regulations to require all businesses that process payments to file a 1099-K for all sellers with more than $600 in gross sales in a calendar year. The American Rescue Plan Act of 2021 requires that sales completed on all e-commerce platforms —including Ticketmaster, StubHub, etc. — are subject to reporting to the IRS as of 01/01/2022. This means that any seller or fan earning more than $600 annually as a result of a sale, or sales, through any U.S. marketplace is required to complete a 1099 form.
In order to generate a complete Form 1099-K as required by state and federal tax laws, many of these sites will need your Taxpayer Identification Number (TIN). Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses.
If you meet these reporting requirements, you will receive a 1099-K at the beginning of each year. The same information will be sent to the IRS and state tax agencies where applicable. Be sure to keep track of the expenses as well, since these can be used to offset the income of the 1099-K.
For more information, please visit: https://www.irs.gov/businesses/understanding-your-form-1099-k
Receive Free financial tips & Tax Alerts!
With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must…
If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. The Setting Every Community Up for Retirement…
Please join us in congratulating Kim Spinardi, Partner at Hamilton Tharp, for being named a 2023 Rising Aztec! Kim is one of ten SDSU alumni to earn the biennial award,…