$9000 TDT WPB FL TAX BILL from BEFORE they required collection

Dee51
Level 3
Jensen Beach, FL

$9000 TDT WPB FL TAX BILL from BEFORE they required collection

In 2019 Palm Beach County started making us collect TDT tax, we had to go to the county, register our listings, get a number for each listing or we were no longer permitted to list on Airbnb. I did all that. I began collecting the extra tax and sending every dime in every month to the county. Well they just did an audit of me and it came back saying I owed almost $9000 ($5400 plus fees @& penalties) for the years 2017 to 2019 on unreported tax. There was no tax collected by me, nor was I told I needed to collect it. By all accounts it looked as if AIRBNB was collecting all the tax and I didn’t need to then. I can’t be the only one that got this un-payable  shock in the mail, how is everyone else handling this?

3 Replies 3
Lorna170
Level 10
Swannanoa, NC

@Dee51   How were you collecting, paying and reporting taxes prior to 2019?  I have been in this business for 15 years, multiple locations, and tax income rules on at least the federal level are fairly straightforward.  If you say that air was collecting the taxes from your guests, but you were not filing a report (monthly, quarterly or annually) then you need a good tax attorney.   I am sorry that you are experiencing this. 

really....not criticizing you directly, but it amazes me how many people jump into hosting without knowing how to report the income and expenses properly.  You need to ascertain what taxes are due from the federal, state, county and municipality before opening your door.  You need to know how to collect, remit and report those taxes.  And Airbnb ain’t gonna do it for ya.  

I filed my regular tax return, I am referring to the TDT tax that PBC began requiring us to collect in 2019. It was new. I collected and filed every month, and my audit is fine for those years. The problem is is they are trying to backdate it two years prior. @Lorna170 

So what happened