Overview
When purchasing tickets on StubHub, you may be prompted to provide your Social Security number (SSN) during the checkout process. This can seem intrusive and raise questions about why StubHub needs such personal information in order to complete a ticket transaction. However, there are some valid reasons why StubHub asks for SSNs.
In short, StubHub requests SSNs in certain situations to comply with IRS tax reporting requirements. When high-volume sellers exceed a certain annual sales threshold, StubHub is obligated to collect their SSN to generate a 1099-K form. This allows the IRS to ensure these high-earning sellers are properly reporting their income for tax purposes.
While providing personal information like a SSN may seem unnecessary or risky, StubHub does have security measures in place to protect user data. And in reality, the request for SSN is only triggered for a small percentage of high-volume sellers on the site. For most regular StubHub users buying or selling the occasional ticket, providing a SSN is not needed.
When does StubHub require a SSN?
StubHub only asks users for their SSN when they meet the following criteria:
– The user is a seller, not a buyer
– The seller has exceeded $20,000 in gross sales and 200 transactions on StubHub in a calendar year
This threshold is based on IRS tax reporting requirements. According to the IRS, third-party settlement organizations like StubHub must issue a 1099-K form to sellers who exceed $20,000 in gross sales and over 200 transactions in a year.
The 1099-K is an informational return that reports a seller’s annual transactions and gross sales to the IRS. This allows the IRS to verify that the income is being properly reported and taxed. To generate the 1099-K, StubHub requires the seller’s taxpayer identification number (TIN), which is usually a Social Security number.
So in summary, the main scenarios when StubHub will request a SSN are:
– Upon registering as a StubHub seller account and expecting to exceed $20,000 in annual sales
– An existing seller reaches the $20,000 sales and 200 transaction threshold for the first time in a given tax year
Meeting the 1099-K threshold
To determine if a seller has met the $20,000 and 200 sales threshold for a tax year, StubHub counts the following types of transactions:
– Successful auction sales, including StubHub fees
– Instant download sales, including fees
– Canceled or unpaid orders do NOT count towards the threshold
So once the total gross sales exceeds $20,000, and total number of transactions exceeds 200, the seller will be required to provide their SSN before they can continue selling on StubHub.
Providing a SSN
When prompted, sellers can provide their 9-digit SSN directly on the StubHub website. StubHub states that the SSN will be encrypted and stored securely in compliance with strict security standards.
Sellers who don’t feel comfortable entering their SSN online also have the option to provide it over the phone by contacting StubHub customer support.
Once the seller provides their SSN, StubHub will generate a 1099-K by January 31st of the following tax year. Sellers can log into their StubHub account to access copies of their 1099-K for tax reporting.
What if I don’t provide my SSN?
If a seller meets the IRS reporting thresholds but does not provide their SSN to StubHub, there are a few consequences:
– StubHub will be required to withhold 28% of the seller’s earnings for backup tax withholding. These withheld funds are remitted to the IRS to cover potential tax liability.
– The seller will be unable to complete any new sales on StubHub until they provide their SSN. Their seller account will be restricted.
– Without the SSN, StubHub cannot generate the required 1099-K. This puts the seller at risk of IRS penalties or audits for mismatching or unreported income.
– The seller misses out on the 1099-K for their own tax reporting. Having the 1099-K can help substantiate income and deductions when filing taxes.
So in summary, while providing the SSN is not absolutely mandatory, it can prevent headaches for both the seller and StubHub down the road. Refusing to provide it can limit selling activities and create tax filing issues.
Is it safe to give StubHub my SSN?
It’s understandable to have reservations about providing a SSN online. After all, SSNs can enable identity theft and financial fraud if exposed.
However, StubHub states that they use proper encryption and security controls to protect users’ sensitive data, including Social Security numbers. Here are some of the security measures StubHub has in place:
Encryption
– SSL encryption is used to protect all transmitted data. SSL encrypts connections between the user’s browser and StubHub’s servers.
– SSNs are encrypted at rest in StubHub databases. Modern encryption algorithms are used to secure sensitive data when stored on servers.
– Limited employee access. Only employees who require access to SSNs for tax reporting purposes can view them.
Security controls
– Data access monitoring. Activity logging tracks who accesses SSN data, helping prevent unauthorized access.
– Compartmentalization. SSN data is isolated from other user data and systems. This limits exposure if any single system is breached.
– Independent security auditing. StubHub systems and networks are continuously evaluated by third-party security firms. This identifies potential weaknesses to address.
– SOC 2 compliance. StubHub undergoes regular SOC 2 audits to ensure security controls meet stringent data protection standards.
Other practices
– Minimal data retention. SSN data is only kept as long as required for IRS reporting. Old SSN data is securely deleted.
– User verification. Steps are taken to verify the legitimacy of high-volume sellers providing SSNs. This reduces the ability for fraudsters to provide fake SSNs.
So while no data security is 100% guaranteed, StubHub does make reasonable efforts to protect users’ SSNs and mitigate risks. Proper handling of SSNs is critical for legal compliance and maintaining user trust in the platform.
Does StubHub share my SSN with anyone?
StubHub states that they do not share or sell users’ SSNs to any third parties, with the exception of the IRS for tax reporting purposes.
Specifically, here is how StubHub handles disclosing SSN information:
– IRS: As discussed above, if a seller exceeds 200 transactions and $20,000 in annual sales, StubHub is required to provide their SSN and transaction data to the IRS on a 1099-K. This is used to verify income reporting for those high-volume sellers.
– Law enforcement: Only if compelled by a subpoena, court order or other legal requirement would StubHub share a SSN with law enforcement agencies.
– Service providers: StubHub may use trusted third-party service providers to assist with payment processing, customer support, security, etc. These services may indirectly access systems containing encrypted SSN data, but are bound by strict data protection contracts.
– External parties: StubHub states they do not share, rent, sell or transfer SSN data with any external parties besides those listed above for regulatory or operational purposes.
So in summary, ordinary users’ SSNs should not be disclosed outside of StubHub and its parent company eBay. Only high-earning sellers’ SSNs are provided to the IRS annually. Even internally, StubHub states they limit SSN access only to employees who require it.
Can I use a Tax ID number instead?
For sellers who have formal business entities, it may be possible to use an Employer Identification Number (EIN) instead of a Social Security number.
An EIN, sometimes called a Federal Tax Identification Number, is a unique 9-digit number assigned by the IRS for business tax purposes. Sole proprietors, corporations, partnerships and some individuals can obtain an EIN.
According to StubHub, sellers can choose to provide either an EIN or Social Security number once they exceed the transaction threshold. However, there are a few considerations:
– The business must be registered and already have a valid EIN from the IRS.
– Income associated with the StubHub account must correspond clearly to the business tied to the EIN. Mixing personal and business income on the account can create issues.
– Providing an EIN does not exempt personal StubHub sales from being subject to 1099-K reporting. The requirements still apply based on total account volume.
– If audited by the IRS, the business must be able to prove the StubHub account transactions are attributable to business activities, not personal sales.
So an existing EIN can be provided instead of a SSN in some scenarios. But the StubHub activity must align closely with registered business operations for this to apply.
Can non-US residents avoid providing a SSN?
For non-US residents selling tickets on StubHub, the same 1099-K reporting rules technically apply if they exceed $20,000 in annual US sales. However, some key nuances exist:
– Non-residents may not have a US Social Security number. In this case, StubHub instead requires a W-8BEN tax form. This form establishes foreign status for IRS purposes.
– Without a SSN, StubHub withholds 30% of earnings for non-residents to remit to the IRS. This covers potential tax liabilities from US income.
– Non-residents may be exempt from 1099-K reporting if covered by tax treaties. This depends on their country of tax residence and treaty terms.
– The IRS still receives data on sales volumes and withheld taxes for these accounts. But 1099-Ks are not furnished directly to sellers.
So in general, non-US sellers can continue using StubHub but need to take extra steps to comply with tax obligations. This includes providing special IRS forms to document foreign status.
Are there any alternatives to giving my SSN?
Aside from using a business EIN in place of a personal SSN, sellers don’t have much leeway when it comes to providing the required identification.
If a seller does not feel comfortable providing their SSN once they surpass the reporting threshold, here are a couple options:
Lower sales volume: Sellers can intentionally limit their annual transactions to stay under the 200 transaction and $20,000 sales limit each tax year. This avoids triggering the mandatory SSN collection. However, it also caps earning potential on StubHub.
Sell only on other sites: Sellers can maintain accounts on sites like VividSeats or SeatGeek instead of StubHub. These competitors may have different policies related to requesting SSNs and tax reporting. However, each site has less market share than StubHub.
Outside of these options, any high-volume seller on StubHub will eventually need to provide their SSN given the IRS reporting requirements. And once the threshold is reached in a tax year, restricting sales doesn’t reset the requirement.
Can I revoke my SSN after providing it?
Once a seller provides their SSN to StubHub, they cannot revoke it or have it deleted from StubHub’s systems. This is because the SSN is required for StubHub to meet ongoing IRS reporting obligations. Per the StubHub terms:
“If you have provided your SSN, we will keep your SSN after it is no longer required to verify your transactions for tax reporting purposes to comply with legal obligations, resolve disputes, enforce our agreements, and for fraud detection, money laundering prevention and business transfers.”
So any SSN provided to StubHub will be retained to assist with:
– Future 1099-K generation each tax year
– Audits of past tax reporting
– Enforcing their user agreement
– Fraud and risk monitoring
– Business continuity during ownership changes
While users can close their StubHub account, this will not trigger deletion of their SSN from StubHub systems. The SSN will remain in encrypted storage as required by accounting, fraud and regulatory purposes.
However, as discussed above, StubHub states they will restrict access to SSN data and securely delete it when it is no longer required for mandatory record-keeping.
Can minors provide their SSN?
StubHub requires all users to be at least 18 years old to maintain a seller account. Under their user agreement, users must be at least 18 or the applicable age of majority in their jurisdiction.
This age restriction helps avoid situations where minors could provide their personal SSN. In general, websites like StubHub should not collect or store SSNs provided directly by minors. This helps limit risks of identity theft and unauthorized use.
In rare cases, minors may sell tickets using a parent or guardian’s StubHub account. In this scenario:
– The parent/guardian registering the account should provide their own SSN once sales thresholds are met.
– The child’s SSN should not be collected or furnished to generate a 1099-K.
– Legally, the parent or guardian would be responsible for reporting any income from ticket sales, not the minor.
So while StubHub does allow minors to buy tickets, its policies prohibit minors from registering as sellers. This avoids improper collection of SSNs from underage users for IRS reporting needs.
Can I report suspicious SSN requests?
While StubHub does legitimately require SSNs from high-volume sellers, it’s prudent to stay vigilant about potential misuse of personal data.
If you receive any suspicious requests for your SSN that do not seem to match StubHub’s stated policies, it’s a good idea to report them for investigation.
Here are some recommended ways to report suspicious SSN requests:
– Contact StubHub customer support to ask about the legitimacy of the request and verify whether it originated from StubHub or a bad actor.
– File a complaint with the FTC Bureau of Consumer Protection if you believe the request is a scam attempt or identity theft scheme.
– Report identity theft to the IRS if you suspect your SSN has been compromised and used to file fraudulent tax returns. The IRS has a specific Form 14039 for ID theft claims.
– Monitor your credit reports and bank accounts for any signs of unauthorized access based on SSN misuse. Place a credit freeze if you see suspicious activity.
– Change your StubHub password immediately if you entered your SSN on a site you now believe was fraudulent. Run antivirus scans to check for malware.
Keeping an open line of communication with StubHub about any odd SSN requests can help resolve them or trigger an investigation. Prompt reporting of suspected fraud is also crucial to limit damages from any potential misuse of your personal data.
Conclusion
Providing sensitive data like a Social Security number is often viewed with healthy skepticism. However, StubHub’s reasons for collecting SSNs from high-volume sellers are legitimate according to IRS regulations. As an intermediary for large transaction volumes, StubHub must issue 1099-K forms just like other payment settlement companies.
While users should stay vigilant for any suspicious SSN requests, StubHub does appear to take data security seriously. Encryption, access controls, auditing and other measures help protect SSN storage and use. StubHub also states they will never sell or share SSN data with external parties besides the IRS.
Limiting sales activity can delay the need to furnish a SSN. But any high-volume seller will eventually need to comply with the reporting requirements if they continue selling on StubHub. This ensures both the seller and StubHub abide by tax reporting rules mandated by the IRS and avoid penalties down the road.