AIRBNB Illegally sending out 1099-k forms for the 2021 Tax YEAR!!!

[Mike2552]

AIRBNB Illegally sending out 1099-k forms for the 2021 Tax YEAR!!!

I have NOT met the threshold to be sent a 1099 for 2021 (200 bookings AND 20K in revenue), yet I was sent one ANYWAY!

Calls five days in a row have yielded zero answers on how this monumental screw-up could possibly occur.  The phone reps tells me this is such a big problem, the department which handles such things cannot even respond.    Guess that's what happens when you Illegally cause people to suddenly incur massive tax liabilities because of YOUR screw up!

[Mike-And-Jane0]

@Mike2552 Why does getting a 1099 cause you a tax liability? Surely you have to declare your income anyway.

[Emilia42]

@Mike2552 

I don't really understand the concern here. I WISH they would send me a 1099! I would then have my taxes done and over with. Instead, I am left waiting for the earning summary that does not load. 

[Kia272]

@Mike2552  What @Mike-And-Jane0 said. 

First, it's not "illegal" for AirBnB to send you a 1099-K.

Second, you have to declare your income, so what's the problem? 

AirBnB did not "cause" you to "suddenly incur a massive tax liability."

You earned income through AirBnB, and they are sending a statement of the income earned. 

I am truly failing to understand why you are so upset, as well as why you would waste your time on the phone trying to fix something that ain't broke. 

Many things at AirBnB are "broke", but  sending you a statement of income earned isn't one of them, unless you're a tax evader. 

[Mike2552]

I disagree.....IT IS illegal for them to be sending a 1099 if you don't meet BOTH criteria (which is a Federal guideline and/or law).   

[Mike-And-Jane0]

@Mike2552 Interestingly the law says when a 1099-K MUST be sent. It appears silent on when it MAY be sent.

Anyway short of wanting to evade tax I still don't see the problem. You don't want to evade tax do you?

[Lorna170]

@Mike2552  I beg to disagree.  It is not illegal for them to send a 1099.  It is illegal for them to neglect to send a 1099 when you have met the criteria requiring one.  I have received 1099s for years from other sources -- my merchant/credit card processors, American Express, Wells Fargo, etc. when I have not met the Federal reporting criteria.  

[Stephanie354]

@Mike2552  I was finally given and answer in an email. This is what they said but it still has me wondering if it was reported and sent to the irs. 

The form originally issued to you has been redacted with the California Franchise Tax Board. In addition, because your Form(s) 1099-K were below the Federal IRS reporting requirements of $20,000 AND 200 transactions, no information has been or will be filed with the Internal Revenue Service (IRS).

You may disregard the Form(s) 1099-K form which was originally issued to you or choose to use it to assist you in preparing your tax return.

[Mike2552]

Wow Stephanie, you received exactly what I WAS HOPING TO GET.  I wonder if I could somehow reference your email to get AIRBNB to give me something similar?

[Deya0]

Hi Mike - I just sent the following to Stephanie above. Please let me know if you were able to confirm anything else yourself with Airbnb: Hello Stephanie, I have been trying to find out this info for awhile. Your post is very helpful. I'm late filing my 2021 taxes so I am still trying to confirm what is going on with receiving a 1099 even though I did not exceed the 20,000$ and 200 transaction threshold. (In addition to the the oneI believe was in error from Airbnb, I also received a 1099 in error from Shopify and from Ebay for 2021- it seems there is a lot of confusion regarding the changeover to the new law for 2022). Regarding your communication with Airbnb where you received the answer above, are you able to share that email that was used? I have reached out to them numerous times with no success, trying to clarify this issue. Fyi, I did go into my reported income transcripts for 2021 on my IRS account and the 1099 from airbnb was not included there, so you may be able to do the same to confirm. 

[Deya0]

Hello Stephanie, I have been trying to find out this info for awhile. Your post is very helpful. I'm late filing my 2021 taxes so I am still trying to confirm what is going on with receiving a 1099 even though I did not exceed the 20,000$ and 200 transaction threshold. (In addition to the the one in error from Airbnb, I also received a 1099 in error from Shopify and from Ebay for 2021- it seems there is a lot of confusion regarding the changeover to the new law for 2022). Regarding your communication with Airbnb where you received the answer above, are you able to share that email that was used? I have reached out to them numerous times with no success, trying to clarify this issue. Fyi, I did go into my reported income transcripts for 2021 on my IRS account and the 1099 from airbnb was not included there, so you may be able to do the same to confirm. 

[Lorna170]

@Mike2552  How is the receipt of a 1099 causing you to incur a tax liability?  You incurred a tax liability the minute that you accepted payment for renting out your property and exceeded the 14 day federal minimum use.

Most of us are happy that we are finally receiving a 1099.  It has been long overdue.

[Mike2552]

You are all missing the point........... the rules for the tax year 2021 are that a 1099 will NOT be sent out unless you have 200 or more bookings, AND you also generated $20,000.   

I did NOT have anywhere NEAR 200 bookings, therefore they should NOT have sent me a 1099.

As of 01/01/2022, the law changed and from that date forward, any amount over $600 generated will trigger a 1099.   

[Emilia42]

@Mike2552 Yes, we all know the tax rules. We are asking you what difference it makes?

[Mike2552]

I don't want a company circumventing federal rules/regulations........nor should anyone HERE.   Doesn't matter what my personal motivations are does it?