Ticketmaster, like many ticket sellers and merchants, requires customers to provide their tax identification number when purchasing tickets over a certain dollar threshold. This is due to federal and state laws that require the reporting of payments made to other parties for tax purposes. While it may seem intrusive to have to provide personal information just to buy concert or event tickets, there are good reasons for this requirement.
Tax Reporting Requirements
The main reason Ticketmaster asks for your tax ID is to comply with reporting requirements set by the Internal Revenue Service (IRS) and state tax agencies. Specifically, under federal law, payments for goods and services made to another person or business over $600 in a calendar year must be reported to the IRS using Form 1099-MISC.
This applies to ticket purchases just like any other type of transaction. So if you buy more than $600 worth of tickets from Ticketmaster in a given year, they are required to collect your tax ID (Social Security number or employer identification number) and report the payments to the IRS. States often have similar reporting requirements at lower dollar thresholds, which is why you may have to provide your tax ID for smaller ticket purchases.
Reporting Thresholds
The 1099-MISC reporting thresholds as of 2023 are:
- Federal: Payments of $600 or more must be reported.
- California: Payments of $600 or more must be reported.
- Massachusetts: Payments of $600 or more must be reported.
- Minnesota: Payments of $600 or more must be reported.
- Vermont: Payments of $600 or more must be reported.
- Other states: Varying thresholds, some as low as $500.
So if you spend more than your state’s threshold with a single merchant in a year, including on tickets, they are required to get your tax ID to report the sales.
Avoiding Penalties
If Ticketmaster did not collect tax IDs and report payments as required, they could face penalties and fines from tax agencies. By gathering customers’ information, they are simply complying with tax regulations and avoiding potential legal trouble.
Verifying Identity
Collecting identifying information like Social Security numbers also allows Ticketmaster to verify the identity of customers. With identity theft and online scams a constant concern, confirming each customer’s identity helps prevent fraud.
Ticketing platforms have to be vigilant against bots, fake accounts, and other illicit methods people use to buy up tickets. Requiring a tax ID ensures there is an identifiable person behind each purchase who can be held accountable.
Purchase Limits
In addition, some major ticket sellers like Ticketmaster use tax identification numbers to enforce purchase limits. There are often limits on how many tickets a single person can buy for hot shows or events. By tying each purchase to a tax ID, they can enforce those limits across all a customer’s ticket buys.
Account Security
Finally, collecting personal information builds more secure customer accounts. Linking ticket purchases to tax IDs and gathering official identification makes it harder for unauthorized users to access and manipulate customer accounts.
Reselling Tickets
Another key reason Ticketmaster requires tax identification for ticket purchases is to track ticket resales. Under federal law, proceeds from the resale of event tickets are taxable. Ticket sellers thus use tax IDs to track and report on these secondary market sales.
1099-K Reporting
If you resell tickets through a site like Ticketmaster, you’ll receive a Form 1099-K if you meet certain sales thresholds. This reports your gross resale proceeds to the IRS so you can be taxed on the income.
Here are the 1099-K reporting requirements as of 2023:
- You sold more than $20,000 worth of tickets and had more than 200 transactions.
- Proceeds from all your sales across all marketplaces totaled more than $600.
So if you’re regularly reselling tickets, Ticketmaster needs your tax information to send 1099-Ks and comply with IRS rules.
Sales Tax
Your tax ID is also required if you’re reselling tickets so Ticketmaster can track sales tax. When tickets are resold through their site, Ticketmaster collects sales tax on those transactions. To properly remit the taxes to state authorities, they need identifying details on sellers.
Data Collection
At a more basic level, Ticketmaster also collects tax IDs simply for internal data collection purposes. By linking customer data to tax identification numbers, they can build more detailed user profiles and track purchase histories over time.
While some may see this as invasive, it does enable Ticketmaster to better identify loyal customers and personalize the buying experience. And most online platforms use customer data similarly, whether it’s tied to tax IDs or other identifiers.
Marketing
In addition, detailed customer data allows Ticketmaster to target promotional offers and ads based on purchase history. While perhaps unwanted by some, this type of personalized marketing is now standard across e-commerce.
Security Concerns
Although there are valid reasons for requiring customer tax IDs, it does raise some security concerns. After all, Social Security numbers and employer IDs are sensitive personal information.
Handing those details over just to buy tickets may worry some customers. Here are a few concerns consumers may have:
- Exposure of SSNs in a data breach
- Possibility of tax ID theft
- Linking identities to detailed purchase histories
- Lack of clarity on data sharing with third parties
These are understandable concerns. However, Ticketmaster states that they use encryption, access controls, and other security measures to protect customer tax information. They claim data is not shared except for authorized purposes or by request.
Still, consumers should assess their comfort level with providing tax IDs based on Ticketmaster’s privacy assurances. If highly concerned, one could purchase tickets in lower amounts from multiple sellers to avoid thresholds.
Purchasing Anonymously
Wondering if you can bypass the tax ID requirement? There are a few ways to do so:
- Purchase tickets as a gift for someone else. The recipient’s ID will be collected instead.
- Buy tickets under the threshold amount. But be aware this varies by state.
- Use a Ticketmaster gift card, which allows anonymous purchases.
- Attend events that don’t require printed tickets, like most concerts.
However, for high-demand events or large ticket orders, an ID will almost always be required. There’s simply no way around the tax reporting laws in those cases.
Requirements Vary
It’s also worth noting that ticket seller requirements are not universal. While Ticketmaster requests tax IDs in many cases, some other major companies like StubHub and Vivid Seats appear to only collect them for sellers reselling tickets.
Policies can also change over time as laws and business practices evolve. But in general, if you’re spending significant amounts on ticket purchases, you can expect to be asked for your tax ID or other proof of identification.
Conclusion
While providing personal information just to buy concert or game tickets may seem inconvenient, Ticketmaster’s reasons for collecting tax identification numbers are legitimate.
By gathering customer tax IDs, Ticketmaster complies with tax reporting laws, resells tickets legally, verifies identities, secures accounts, tracks sales, and collects data to personalize its services.
Consumers do have some options to purchase tickets anonymously in lower amounts. But for many events and ticket volumes, an ID will be required.
Overall, Ticketmaster’s tax ID requirement, while frustrating to some, stems from federal reporting rules and industry best practices. Although privacy concerns are warranted, Ticketmaster maintains the data is kept secure and confidential.
