According to the new Internal Revenue Services (IRS) rule, sites like StubHub and Ticketmaster have to report data of all sellers making more than $600.
The American Rescue Plan Act requires sellers to fill out the 1099-K form, and the earnings will then be subjected to tax income deductions.
Before, the taxable income on ticket resales was $20,000 in revenue in over 200 transactions.
This was triggered after tickets for Taylor Swift's Eras tour saw highly inflated ticket resale prices.
What began as an average face value price of $254 reached an exorbitant $2,183 at the resell price.
Beyoncé's Renaissance tour ticket resales cost up to $900. Fake tickets were sold and sites also crashed.
TicketMaster said that the site glitches and inability to prebook tickets were caused by bots.