2021 1099K

[Victoria1128]

Hello, I received a 1099K this week regardless that I did not meet the threshold for 2021. I have called for over 3 days and being passed around. I was told a Case Manager will call me and still no calls to date.  Just wondering if other hosts had same experienced? I don’t know what to do to rectify the oversight they made. Thank you 

[Victoria1128]

Hello @Jill104 @here is the screenshot from Franchise Tax Board State of California. 

[Jill104]

@Victoria1128 , thanks for sharing this info. Yes, it is all very confusing and conflicting info.

[Allen136]

Hi Victoria,

Airbnb is actually interpreting the law incorrectly. That is meant for app based drivers. “If you receive $600 or more in third-party payment transactions ***AND*** are an app based driver”

We are not app based drivers. For everyone else, including us, it doesn’t apply until the 2022 tax season, hence the next paragraph “For calendar years beginning in 2022” 

There’s also multiple places on airbnbs website that states we would not receive a 1099k so it’s frustrating to rely on that information just for them to backtrack and give us a million excuses. They’re probably not responding to my case because I was able to point out every little detail and they basically have no way to explain that this isn’t an error on their part.

see following link:

https://www.airbnb.com/help/article/414/when-you-might-receive-a-tax-form-from-airbnb

They even have a section that lists the states with lower reporting thresholds and California is not one of them. 

How can they reasonably expect us to make informed decisions like this? 

[Victoria1128]

Hi @Jill104 @you are correct! I re-read the 1099K ruling and it clearly stated third party network “and” app based drivers. Although California is listed btw lower reporting threshold. Nonetheless I doubt it if you would even get a response from air bnb. Let me see if I can email Lisa who was my direct contact and explain to her what you’ve shared with me. At end of day 1099K have been issued to Californian Hosts. My GF that has an air bnb property in mammoth did not receive a 1099K. I’ll be in touch .. thank you 

[Allen136]

I’m flabbergasted….Airbnb just recently added California to that list and I bet you it’s because I brought it up that I’m not in a state with lower reporting thresholds and referred to that article. Too bad they updated that information AFTER they issued us our tax forms. They’re trying to be sneaky but I have the original screenshots I took when I opened the support case on 01/31/22. 

[Allen136]

Actually it doesn’t matter that California is on the list now. It still states “as of January 1 2022,” which is correct but that’s referring to the 2022 tax season which we won’t file until 2023.

The issue is that Airbnb incorrectly applied the California Franchise Tax Board rule effective Jan 1 2021, which is meant for app-based drivers which we are not. I just brought this issue up as well but whoever is handling my case is dead silent.

Even the IRS told me to contact the issuer (Airbnb) to correct any mistakes on tax form and said that if I received a tax form that I shouldn’t have, it’s a “type 1 error” and to ask Airbnb for a corrected form which isn’t exactly a difficult task. Except I can’t get a hold of anyone at Airbnb to do this. So frustrating!!

[Victoria1128]

Hello @Allen136 I was able to get an Agent based in the U.S.  she understood our case and she escalated our case. Let’s hope I hear back from Lisa or another Ambassador. I’ll keep you posted.  

[Mike2552]

AIRBNB is truly pathetic!    Here tax season deadlines are fast closing-in, and these morons can't get us corrected/amended 1099-K's?........I smell a class-action lawsuit coming their way in the near future

[Victoria1128]

Hello @Mike2552  I have called Airbnb everyday as well and received an email

from a specialist I think 4 days ago and she used the same excuse  .. She attached the link directly from their Airbnb Tax info Q and A . It clearly stated ARPA ruling effective Jan 1,2022. I responded immediately and asked her to re-read the link she sent me but dead silence. Then another Specialist responded to my other email. Same excuse. I can’t comprehend why they are not getting the oversight made. I am giving up. 

**[Name hidden due to privacy concerns - Community Center Guidelines]

[Allen136]

There certainly a breakdown in communication somewhere in Airbnb. 

I have tried….

Calling - They never get back to you or eventually refer you to their “help topics” which is exactly why we are calling in because our issue contradicts what Airbnb published in the help topics. 

Messaging support on the app - A bot responds and says I already brought up this issue up but can add additional details to the original thread, then merges the threads. Except they closed the case on the original thread and I can’t type anything there. Can’t even get through to a real human. 
Email - Either flat out ignored or the support reps respond with pre-typed responses, then never hear back. Passed around from rep to rep. I even tried emailing the CEO and other corporate emails I could find. No luck.

Community Center - I’ve tried posting here, and even tagging Airbnb and other admins. No response even though some of these people are normally pretty active here. 

For the tax issue I brought up at the end of January and now it’s almost March. It seems everyone with the same tax issue are also getting no answers. So what gives? Why the breakdown in communication?  @Airbnb @Brian @Scott @Lizzie @Stephanie @Quincy 

[Patti120]

Hi Mike,

I appreciate your frustration. If you can get the Airbnb Accounting Justification for your account for 2021 you will see their accounting for your account. It took me 6 weeks to get mine and it was only received after uploading my bank statements showing what was actually receive, sending a copy to the Accounting Manager in San Francisco and a copy to the CFO for the company. The incorrect 1099k for 2021 won't be corrected, but Airbnb will need to fix this problem in the future as their 1099k is based on the payment made by the Guest on their credit card not the payouts received by the Host. I was told, by Airbnb after receiving their justification:  take the net paid, add back the 3% Host fee paid and add back the cleaning fees paid. Airbnb made obvious adjustments to the Cleaning Fee  paid on my account to make their 1099k math add up.  The actual payout and 3% fee matched my records, but the cleaning fees were off by $2581 overstatement. 

My accountant was grateful to have the Airbnb Justification for the  incorrect 1099k sent in order to finish our 2021 tax return. This is a mess. 

Hope this helps you,

Patti

**[Personal details removed in line with the Community Center Guidelines]

[Sybe]

Hi everyone,

As mentioned in my reply here, we'd love to get to the bottom of this for you but I'm a bit confused. Could you clarify please what you'd like us to get an answer on?

Thanks!  😃

[Victoria1128]

Hello Sybe, 

Thank you for your involvement.  The question being is the 2021 1099-K that some of us on this chat forum are talking about.  We received the 1099-K for year 2021 and this is an oversight.  Please go online to the Franchise Tax Board of California. Search 1099-K.  You will find exactly what i pasted below.

The $600 reporting threshold in the state of California pertains to app-based drivers and not for short term rentals.  I was in communication with Charles G, one of your Specialist and he informed me that short term rentals is part of the $600 threshold in California for 2021.  However, the  short term rentals was never mentioned on the Franchise Tax Board website.  In summary, Airbnb Tax dept. issued incorrect 2021 1099_k to some of us.  This oversight has to be corrected immediately.  Please look into this and advise.  We thank you.

[Allen136]

We got a 1099k while under reporting thresholds and conflicting with the Airbnb help topics. The screenshot above was taken and sent to support on Jan 31st when I first contacted Airbnb about the issue.

I inquired that I got a 1099k which is conflicting with the help topic posted by Airbnb which essentially says we would NOT be receiving a 1099k. We are trying to get our 1099k corrected or amended.

BTW I mentioned that California is not a state with lower reporting thresholds as you can see it wasn’t listed so I was confused. I never received a response besides “we’re investigating your case”. Airbnb has since added California to the list which I suspect because I brought it up. Actually, I’m pretty sure they did, because they changed it again after I pointed something else out and I have screenshots of all the versions. Regardless the date lower reporting thresholds start is Jan 1, 2022 so it doesn’t apply to the 2021 tax season. 

What’s the point of posting a help topic if Airbnb is going to do the exact opposite? How do you expect us to accurately plan our tax year if Airbnb can just arbitrarily decide to not follow their own guides that they published and then try to be sneaky and change it after the fact?  If for some reason Airbnb made a mistake, why can’t they take responsibility and do what’s right? 

[Allen136]

As Victoria mentioned, the $600 lower reporting threshold for California that began Jan 1, 2021 is for app-based drivers (Uber, Lyft, etc.) which we are not. 

For everyone else, the $600 lower reporting thresholds began Jan 1, 2022 which means any dates in the calendar year of 2022. Not 2021. 

You can see for yourself directly from the California Franchise Tax Board website and going to the 1099-k section.

 https://www.ftb.ca.gov/file/personal/income-types/information-returns-1099.html

Pay attention to: “For calendar years beginning in 2022” would imply that it’s 2022 and not 2021. 

Also pay attention to: “$600 or more in settlement of third-party transactions ****AND**** are an app-based driver…”

Again, this is directly from the CA FTB website and implies that we weren’t under lower reporting thresholds for 2021.