The IRS will know if you benefited from the "Prime Effect"

A big shift in the law means you might be coughing up more tax dollars than expected

Ben Lonergan / USA TODAY NETWORK

Anyone who made money reselling tickets could be in for a tax surprise. An updated federal law helps the Internal Revenue Service crack down on those flipping tickets, in hopes to regulate exorbitant prices both on the retail and secondary markets.

This came down last week as part of the American Rescue Plan Act, which will see companies like Ticketmaster and StubHub becoming a mandatory reporter for tax purposes. The customers who generated more than $600 USD in profit will be subject to a tax bill. 

“Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600,” the IRS noted in a statement. “The $600 reporting threshold started with tax year 2023. There are no changes to what counts as income or how tax is calculated.”

Everybody has wanted a piece of the "Prime Effect" at Colorado by driving up ticket prices to an all-time high. Since Deion Sanders took over in Boulder, ticket sales soared with a first-ever complete sellout being reported by CU athletics. This has forced people to the secondary market in hopes of getting a seat at Folsom Field. About 25,000 Nebraska fans made the trip for this year's "Red Letter" Rivalry.    

While the law is focused on higher-ticketed events like Taylor Swift's world tour, there's no doubt some sports enthusiasts will owe a significant amount at the end of the year.