KANSAS CITY, Mo. — Chiefs season ticket holders are receiving an email from Ticketmaster asking for personal information and notifying them about new tax laws when they sell their tickets.

Stephen Reyes has been a season ticket holder for four years.

“It’s been amazing,” Reyes said. “We even upgraded our seats.”

Reyes said he noticed the 2022 tax law changes during the playoffs when he tried to sell Divisional Round seats on Ticketmaster.

The online ticketing giant sent him—and others—an email, stating in part: “Before we can pay you, we will need to collect your taxpayer information.”

It asked for the sellers name, address, phone number, and Taxpayer Identification Number (TIN).

In the email, Ticketmaster adds they’re generally required to file a Form 1099-K report with the IRS if the gross amount of your sales on their marketplaces is $600 or more in a calendar year.

“We already see the fees that they’re taking from us and then now a tax on top of it, it seems little extreme,” Reyes said.

Financial advisor Amy Guerich of Stepp and Rothwell says this applies to third party vendors like PayPal and Venmo, but only for goods and services.

“It’s just law now,” Guerich said. “They are going to collect it because it has to be reported to the IRS.  Technically, any money in excess of your cost which includes the price you play for the tickets and fees is considered income.”

Guerich recommends if you get a 1099-K, to talk to an accountant about how to incorporate into your tax return and how to calculate any income tax that might be due.

“I do feel kind of tied down, but we all love the Chiefs so we all just want to go to the games,” Reyes said.

Ticketmaster provided background information on the requirement:

1. Ticketmaster and other online marketplaces are required to file a Form 1099-K report with the IRS if the gross amount of a sellers ticket sales on our marketplaces is $600 or more in a calendar year.

2. To ensure compliance with applicable federal and state tax reporting laws, Ticketmaster collects taxpayer information starting with the first completed sale even if that sale does not meet the $600 threshold. If the seller does not ultimately reach the annual threshold, they will not receive a Form 1099-K from Ticketmaster. Reporting requirements may differ in some states.

Additional information may be found on the IRS page link here and additional information copied below: https://www.irs.gov/businesses/new-1099-k-reporting-requirements-for-payment-settlement-entities

As well as in our FAQ here: https://help.ticketmaster.com/s/article/1099-K-Form-Answers-to-Some-Common-Questions?language=en_US

Ticketmaster

The company also provided a list of reporting requirements for years before 2022 and after 2021:

Prior to 2022

For returns for calendar years prior to 2022, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:

  1. All payments made in settlement of payment card transactions (e.g., credit card);
  2. Payments in settlement of third-party network transactions IF:
    1. Gross payments to a participating payee exceed $20,000; AND
    2. There are more than 200 transactions with the participating payee.

After 2021

  1. All payments made in settlement of payment card transactions (e.g., credit card);
  2. Payments in settlement of third-party network transactions if gross payments to a participating payee exceed $600, regardless of the number of transactions with the participating payee.
    Note: For transactions made after March 11, 2021, ARPA clarifies Form 1099-K reporting by third-party settlement organizations applies only for transactions for the provision of goods or services settled through a third-party payment network.

The Chiefs have not responded to requests for comment for this story.