The following is for informational purposes only and effective as of January 1, 2022. Please consult your tax advisor about amounts you may need to report on your tax return, as it is your responsibility to report applicable amounts relating to your ticket transactions.
Learn more about Form 1099-K here: https://www.irs.gov/businesses/understanding-your-form-1099-k
What is a Form 1099-K? When will I get my Form 1099-K?
The IRS and some state taxing authorities may require AXS to report the amounts you receive from (re)sale transactions using AXS Official Resale. AXS will be sending out a Form 1099-K as to any account holder with an aggregate of $600 or more in gross sales during each prior calendar year (January 1 - December 31) via AXS Official Resale, beginning with transactions covering the 2022 calendar year.
A Form 1099-K from AXS is intended to report the total gross sales income sold through AXS Official Resale, and you will receive it by January 31 of the following year. (See a sample form)
How will AXS collect my tax-payer information?
When you have reached $600 in gross sales within a calendar year, we will automatically request your Taxpayer Identification Number (TIN) when you are logged into your AXS account.
AXS has partnered with a third-party database solution provider to collect your information, which will include your legal name, address, phone number and Tax Identification Number / Social Security Number.
In many cases, your TIN is your Social Security Number
Small business owners may have an Employer Identification Number (EIN) issued by the IRS
How can I submit my information?
Beginning in January 2022, when you sign into your AXS account, you can complete your IRS Request for Taxpayer ID Form by clicking Complete Form. We recommend that you complete the Taxpayer ID form using a desktop computer.
- Sign into AXS Account.
- Click Your Account.
- Click Payments.
- Click Complete Form.
From AXS app:
- Sign into AXS App.
- Tap Sales Balance.
- Tap U.S. Sales Balance.
- Tap Complete Form. You will be redirected to a mobile web browser and logged into your AXS account.
- Tap Payments.
- Tap Complete Form.
NOTE: To keep your information safe, do not send it via email or chat or give it to anyone over the phone.
How will AXS calculate the gross sales amount of my transactions?
The IRS requires us to report your gross sales transactions on a calendar year basis. We calculate your gross sales based on the date the sale was made, not when you receive the sales proceeds from your transaction.
The gross amount of a reportable transaction does not include adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts or any other amounts, so your original purchase price, any selling fees or related taxes are not deducted from the amount reported. For example, if your total ticket resale transactions total to $1,000 in a calendar year and you were charged 10% ($100) in seller fees as to those transactions, your gross payments would be considered to be $1,000 as to those transactions in that calendar year.
In the case of a cancelled event, when your sales transaction is reversed, what would be reported is the gross sales value of the transaction and would not reflect any adjustment / reversal for the cancelled transaction.
You should ask your tax advisor about amounts you may need to report on your tax return. It is your responsibility to report amounts and deduct any fees, sales or other local taxes or charges to sell your tickets.
What if I have multiple AXS accounts?
Fans with multiple AXS accounts that are used to sell goods on AXS Official Resale will be subject to completing a Taxpayer ID Form for each account with $600 or more in gross sales. Our third-party solution provider will combine the total gross sales from all of your accounts based on your TIN for a single Form 1099-K.
Can I opt-out of submitting my tax-payer information?
Yes, however, fans who opt-out of submitting their Taxpayer ID Form will agree to have the IRS backup withholding rate (currently 24%) of their gross sales deducted from their sales proceed available for distribution.
I am not a U.S. person. Am I subject to these requirements?
If you are not a U.S. citizen or resident, you may not be subject to the Form 1099-K requirements. However, the IRS may require that AXS ask you for certain information to verify your non-US status. AXS will never ask you to provide this information over the phone or in an email. To avoid issues with processing, please ensure that all fields are entered accurately.