The following is for informational purposes only and is effective as of December 11, 2023. Please consult your tax advisor about amounts you may need to report on your Federal or State tax returns, as it is your responsibility to report applicable amounts relating to your resale ticket transactions.
Learn more about Form 1099-K here: Understanding Your Form 1099-K and Form 1099-K FAQs
What is a Form 1099-K?
The IRS and some state tax authorities may require AXS to report the amounts you or your business receives from (re)sale transactions using AXS Official Resale on an IRS Form 1099-K, Payment Card, and Third Party Network Transactions.
The Form 1099-K is an information form that summarizes the unadjusted gross sales activity of your AXS account. Its purpose is to assist you in reporting taxable income when you file your tax return.
Updated U.S. Form 1099-K Tax Reporting Requirements
On November 21, 2023, the IRS issued Notice 2023-74, delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on Form 1099-K, Payment Card, and Third Party Network Transactions. The IRS had previously delayed the Form 1099-K $600 gross sales reporting threshold in Notice 2023-10 (December 2022).
For the calendar year 2023, payment apps and online marketplaces are required to file an IRS Form 1099-K for personal or business accounts only if the unadjusted gross sales amount to be reported exceeds $20,000 and the number of such transactions exceeds 200.
Starting January 1, 2024, if your annual unadjusted gross sales are $5,000 or more (regardless of the number of transactions), AXS Account Users must complete a Taxpayer ID Intake form to comply with IRS Form 1099-K requirements.
As of December 2023, 21 states have lower thresholds for receiving a Form 1099-K. You will receive a Form 1099-K from AXS if you meet either the Federal threshold or the threshold for your state as provided in your tax profile. US State tax regulatory authorities haven’t fully finalized Form 1099-K filing requirements for calendar year 2023 and may be subject to change.
Individuals and businesses (including non-profits) not meeting the above Federal or state thresholds will not be issued a Form 1099-K by AXS. Anyone receiving taxable income paid through third party networks must track and report their taxable income.
How will AXS collect my taxpayer information?
Each calendar year, when an AXS Account has reached the IRS-defined thresholds in unadjusted gross sales and number of transactions, AXS will ask you to provide certain personal information within a Taxpayer ID Intake form when you are logged into your AXS account. AXS will never ask you to provide this information directly over the phone or via email or chat.
AXS has partnered with a third party database solution provider to collect your information via a tax profile. To ensure accurate tax reporting to the IRS, we need you to provide the following:
- Contact information (mailing address, e-mail address, phone number)
- Legal name (full name)
- Taxpayer Identification Number (TIN).
In most cases, your TIN is either a Social Security Number (SSN), an Employer Identification Number (EIN), or an Individual Taxpayer Identification Number (ITIN).
To avoid delays in processing, ensure that the information provided to AXS matches what you use for tax return purposes (same full name and TIN). Your TIN on file ensures we AXS can give you, the IRS, and state tax agencies your Form 1099-K as US tax law requires.
If you don't provide us with an SSN, EIN, or ITIN, and sales exceed the Form 1099-K reporting thresholds, your account disbursements will be suspended until you complete the Taxpayer ID Intake form.
In accordance with AXS’s privacy policy, your personal information will be stored in strict confidence and processed only for these compliance purposes to comply with applicable economic sanctions programs, including those administered by the U.S. Department of Treasury Office of Foreign Asset Control.
How can I complete my Taxpayer ID Intake form information?
Beginning in January 2022, each calendar year, if your unadjusted gross sales in your AXS account exceed the defined thresholds, when you sign into your AXS account, you will be prompted to complete a Taxpayer ID Intake form by clicking Complete Form. We recommend that you complete the Taxpayer ID Intake form using a desktop computer using a web browser with no pop-up blockers.
From desktop:
- 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. You are not preparing or completing a tax return by completing your Taxpayer ID Intake form.
You can also tell if you have met the thresholds by monitoring your unadjusted gross payments and the number of transactions.
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 for each month. The amounts reported on your Form 1099-K may not be your final reportable amount on your tax return.
The IRS reportable gross sales transactions for the calendar year are gross sales before adjustments for credits, cash equivalents, discounts, fees, related taxes, refunds, canceled events, substitutions, or any other adjustable amounts. Your original purchase price, selling fees, or related taxes are not deducted from the reported unadjusted gross sales amount.
For example, if your total gross ticket resale transactions total $1,000 in a calendar year and you were charged 10% ($100) in seller fees for those transactions, your IRS reportable gross payments would be $1,000 for those transactions in that calendar year. The gross sales amount is reported on Form 1099-K, not the net payment paid to the seller.
Ask your tax professional about the amounts you may need to report on your tax return. You are responsible for reporting amounts and deducting any fees, local taxes, or charges to sell your tickets.
What if I have multiple AXS accounts?
Fans with multiple AXS accounts used to sell tickets on AXS Official Resale will be subject to completing a Taxpayer ID Intake form for each account with gross sales that meet the Form 1099-K reporting thresholds. 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 taxpayer information?
Yes, fans who opt out of submitting their Taxpayer ID Intake form will agree to have the IRS-required backup withholding taxes deducted from their gross sales proceeds available for distribution. You can Chat with Us for more information.
I am not a U.S. person. Am I subject to these requirements?
You may not be subject to the Form 1099-K requirements if you are not a U.S. citizen or resident. However, if the information on your tax profile identifies you as a US seller (your address on file is US, or you receive payments in USD), we must issue you a Form 1099-K.
The IRS may require AXS to ask you for certain information to verify your non-US status. AXS will never ask you to provide this information via phone, chat, or email. To avoid issues with processing, please ensure that all fields are entered accurately.
When will I get my Form 1099-K?
AXS will send out a Form 1099-K to any account holder that meets the above IRS-defined total aggregate gross sales and the number of transactions.
A Form 1099-K for the prior tax year will be issued by January 31st of the following year via paperless delivery via your AXS account (if AXS receives electronic consent) or via US postal mail to your provided tax profile address. (See a sample form). You will not receive an additional printed form in the mail for paperless delivery.
The same information tax information will be reported to the IRS and applicable state tax agencies.
I would like more information on the regulations that require AXS to file an IRS Form 1099-K for applicable sellers. Where in the Internal Revenue Code can I read about these regulations?
The regulations are under Internal Revenue Code Section 6050W.
- For Individual taxpayers, see these IRS instructions: http://www.irs.gov/pub/irs-pdf/i1040sc.pdf.
- For legal entity taxpayers, see IRS Form 1120: http://www.irs.gov/pub/irs-pdf/f1120.pdf.
Please note that AXS cannot provide tax advice to sellers. For more information, we encourage you to visit the IRS website and consult with your tax advisor.
How do I update the taxpayer information on my 2023 Form 1099-K?
If your taxpayer information (contact information, legal name or TIN) is incorrect on your Form 1099-K, you can update your taxpayer ID to receive an updated form on or before March 14, 2024. As of March 15, 2024, AXS will no longer accept changes to 2023 tax information. If you update your 2023 taxpayer information between February 1, 2024 and March 14, 2024, you can download an updated form through your AXS account (if electronic consent was chosen) or via US mail.
Can AXS provide me instructions on how to read IRS Form 1099-K and how to know what the different boxes mean?
Please refer to the IRS Form 1099-K instructions that can be found at: http://www.irs.gov/pub/irs-pdf/i1099k.pdf
Can AXS help me with my tax return(s) or reconciling the amounts reported on my Form 1099-K?
AXS cannot answer specific questions about reconciling the amounts on your Form 1099-K or provide accounting, legal, or tax advice or guidance.
If you have questions, we recommend you speak with a tax professional.
What can AXS Fan Support help with?
AXS Fan Support can help with any of the following issues:
- You need to correct the 2023 taxpayer profile information (contact information, legal name or TIN) on file with AXS before March 14, 2024.
- You have a technical issue accessing the Form 1099-K via your AXS Account (if you chose electronic delivery).
- You should be exempt from Form 1099-K reporting as an eligible Non-US individual or business operating outside the US.
- You are concerned about the unadjusted gross amount reported on the issued Form 1099-K (Please see How will AXS calculate the gross sales amount of my transactions?)
To contact AXS Fan Support, please click Chat with Us.
For all other assistance and inquiries, please contact a tax professional.