Florida's CFO is Going to Bat for Ticket Resellers

News

By RC Staff

11 October 2023

If you’ve resold any tickets this year, you’ll want to read this. Recent changes to the IRS tax code have drastically changed the threshold for reportable income on ticket reselling. Specifically, any amount over $600 will now require a platform to report your earnings directly to the IRS. The change will affect filings for the 2023 tax year. Fortunately, Florida’s Chief Financial Officer Jimmy Patronis is fighting back against the changes. It’s good to know there are people in the government fighting for scalpers.

American Rescue Plan 1099-K Changes

Let’s back it up a bit. Just what is going on with the new tax changes, and how do they impact resellers?

Back in 2021, Congress passed the American Rescue Plan Act, a wide set of changes and stimulus packages aimed at stabilizing the economy in the wake of the pandemic. Those $1,400 checks sent out in the mail were both approved and paid for by this bill.

One of these changes was to the 1099-K form. Specifically, the minimum threshold for a company to report your earnings to the IRS. In the past, companies like Venmo, Ticketmaster, and eBay were required to report you for annual transactions exceeding $20,000 or 200 total transactions.

Now, that number has been lowered to $600. The change was set to go into effect last year, but was delayed. It is now fully in effect, and companies will be reporting transactions over the threshold for the 2023 tax year.

How does this affect resellers?

Unless you’ve been dealing exclusively in cash, pretty much all of your reselling transactions will involve a third-party platform. Before 2023, you might not have even had to deal with the potential tax implications if you didn’t hit the $20,000 threshold.

That’s no longer the case. Now nearly every reseller will have their income reported to the IRS. Ticket resellers, sneakerheads, merch flippers; it doesn’t matter. Exceed $600 in sales through 2023, and you’ll be on the IRS’ radar.

Technically, this has always been taxable income. The previous 1099-K regulations just created a lenient atmosphere for small-time sellers.

Whether you were aware of the change or not, you can see why this is frustrating for many resellers. Even though the legislation was passed in 2021, it feels like the new rules are being dropped into peoples laps suddenly, and the tax implications can be pretty major for successful resellers.

Enter Florida CFO Jimmy Patronis

In a world filled with hate for resellers, it’s easy to feel like no one has our backs. Fortunately, one major figure in Florida’s government is fighting for scalper’s rights.

Florida CFO Jimmy Patronis is attacking the changes to 1099-K forms as an act of “deep state” overreach, and a contradiction of the the goals of the American Rescue Plan. The change would have the greatest impact on small-time sellers and independent businesses after all.

Obnoxious conspiracies aside, it is nice to know someone is fighting back against the change. Even so, it’s unlikely the new rule will delayed again, so keep this in mind when April rolls around.

If you want to learn more about reselling, subscribe to our newsletter. In addition to the occasional legal update like this, we also cover the hottest items that flip for a profit.