The following is for informational purposes only and is effective as of February 9, 2023. Please consult your tax professional 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.
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 your income taxes.
Updated U.S. Form 1099-K Tax Reporting Requirements for Tax Years 2022 and 2023
On Friday, December 23, 2022, the IRS issued Notice 2023-10 delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card, and Third Party Network Transactions.
A third-party settlement organization (TPSO) is not required to report payments in settlement of third-party network transactions with respect to the participating payee unless the reported gross amount of aggregate payments to be reported exceeds the IRS-defined gross sales and the number of transactions thresholds in the previous calendar year.
As a result, effective December 23, 2022, AXS was no longer required to report the tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan of 2021.
- For the tax year 2022, a Form 1099-K will only be generated and provided via postal mail or electronic delivery (if consented) to taxpayer accounts meeting the threshold of exceeding $20,000 in unadjusted gross sales and over 200 transactions. IRS Form 1099-K is consolidated and issued by AXS for each specific taxpayer ID number (SSN or FEIN).
- For the tax year 2023 and beyond, beginning January 1st, 2023, the Form 1099-K reporting threshold is unadjusted gross sales that exceed a minimum of $600 in aggregate payments (regardless of the number of transactions). AXS Account users will be prompted to complete a tax profile within their AXS account if they exceed the $600 unadjusted gross sales threshold if they have not previously completed one.
As of February 9, 2023, 12 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.
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 needs to 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 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 Individual Taxpayer Identification Number (ITIN).
To avoid delays in processing, ensure that the information provided to AXS matches what you use for tax purposes (same full name and TIN). If you don't provide us with an SSN, EIN, or ITIN, and your sales meet the Form 1099-K reporting thresholds, your payouts will be put on hold, and we may deduct backup withholding from future payouts. Your TIN on file ensures we AXS can give you, the IRS, and state tax agencies your Form 1099-K as required by US tax law.
How can I submit my Taxpayer ID Form information?
Beginning in January 2022, if your unadjusted gross sales in your AXS account exceed the defined thresholds for the applicable calendar year when you sign in to your AXS account, you will be prompted to complete your Taxpayer ID Form by clicking Complete Form. We recommend that you complete the Taxpayer ID form using a desktop computer using a web browser with no pop-up blockers.
- 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. By completing your Taxpayer ID Form, you are not preparing or completing a tax return.
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 by month for each tax year. 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, any selling fees, or related taxes are not deducted from the unadjusted gross sales amount reported.
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.
You should ask your tax professional about the 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 tickets on AXS Official Resale will be subject to completing a Taxpayer ID Form for each account that have gross sales that meet the Form 1099-K reporting thresholds. Our third-party solution provider will combine the total gross sales from all 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 Form will agree to have the IRS-required backup withholding taxes (currently 24% tax rate) deducted from their gross 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, 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’re required to 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 over the phone or in an 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). For paperless delivery, you will not receive an additional printed form in the mail.
The same 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 2022 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, 2023. As of March 15, 2023, AXS will no longer accept changes to 2022 tax information. If you update your 2022 taxpayer information between January 2023 and March 14, 2023, you can download an updated form thru your AXS account (if electronic consent was chosen) or via US mail.
Can AXS provide me instructions on how to read 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 reconcile the amounts reported on my Form 1099-K?
AXS is unable to 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 taxpayer profile information (contact information, legal name, or TIN) on or before March 14, 2023.
- You have a technical issue accessing Form 1099-K via your AXS Account (if you choose 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 here.
For all other assistance and inquiries, please contact a tax professional.