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!

[Allen136]

California Franchise Tax Board 

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

You can see the lower reporting thresholds for Jan 1 2021 is only for app-based drivers which we are not.

For us and everyone else in California, the new thresholds don’t apply until Jan 1, 2022. (The 2022 tax year which we file in 2023) 

[Allen136]

You can see eBay/PayPal had the same issue here. They rectified it immediately. I know tax law is complex but another large company like eBay/PayPal. I’d expect them to get it right, and it’s in line with my conclusions that Airbnb made the error here. 

 
https://community.ebay.com/t5/Selling/1099-K-form-sent-in-error-by-ebay/td-p/32672021/page/3

eBay/PayPal spotted the issue and acted right away, sent out the email on 2/4/22. I brought this issue to airbnbs attention on 1/31/22 and it’s been a month now with no resolution and no response. 

Tax time is incredibly stressful, and when there’s an error, it’s even more so. Then when you have an unresponsive company like Airbnb, it’s just incredibly frustrating. 

[Mike2552]

Yep, I sent the same Ebay URL to AIRBNB'S "internal team" that was supposed to be investigating this......and their response was that they are NOT sending these 1099-K's to the IRS, but ARE sending them to California Taxation board.........Lame

[Allen136]

I do believe that’s an error on their part as well, as the lower thresholds for the California Franchise Tax Board don’t kick in until the 2022 tax year unless you’re an app-based driver.

I’m confused because I know several hosts and we are all under the threshold but some got the 1099k and others didn’t. So if they are indeed not transmitting it to the IRS, does that apply to all the hosts that got a 1099k or just whoever they feel like, because it seems they just arbitrarily decide on these things, and how am I suppose to know for sure? 

[Allen136]

Here is another issue as well. Do you guys remember when Airbnb was requesting our taxpayer info due to changes from the American Rescue Plan Act or else face 30% withholdings and having your calendar and payout blocked. You can see in the link here.

https://community.withairbnb.com/t5/Airbnb-Updates/U-S-Hosts-Airbnb-requires-taxpayer-information-Su...

There was no indication they would go ahead and use this information to issue a 1099 for 2021 even though they clearly stated they needed it for 2022. Again, it just seems dishonest and makes it hard for me to trust Airbnb.

 @Airbnb @Scott @Lizzie @Stephanie @Quincy 

or any admin, could you please help? There seems to be no consistent answer for the ones that actually received a reply, yet I’m sitting here for a month without any reply from Airbnb. There’s also a whole other thread with the same issue and none of us have been able to get a corrected 1099. 

https://community.withairbnb.com/t5/Help/2021-1099K/m-p/1565885

[Stephanie354]

Airbnb sent me a 1099 for 2021 and I made under 20k. Also under 200 guests. Actually only 1 guest who stayed two months. I called and they finally responded by emailing me... 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.

So now I'm not sure what to do. Should I trust it was not sent to the IRS? 

[Mike-And-Jane0]

@Stephanie354 does it matter if they have sent it to the IRS? What difference does it make?

[Mike2552]

Wow Stephanie, you got exactly WHAT I WAS TRYING TO GET from AIRBNB!  I wonder if I could somehow reference what they sent you?   If they gave you some kind of case/reference number and/or the name of who sent that to you, it would be helpful for me I'm sure....especially since AIRBNB has been dispensing a different answer to everyone.  😞

[Hilda10]

I would have done things different too had I known ABB was going to report the income, so can we am end our tax  return when ABB corrects the 1099? I just received an email from ABB apologizing for mistakingly reporting it

[Sybe]

Hi everyone,

Thanks for raising this on the CC. I'd love to get to the bottom of this for you all, but there are a couple of different things that are being discussed here and I'm a bit confused as to what answers I'd need to be looking for. 

There have been mentions of Hosts receiving the 1099-K form when they shouldn't have, and others about the form containing incorrect information. Could you clarify please what you'd like us to get an answer on? 

Thanks! 😃

[Allen136]

Thank you for your reply Sybe,

We responded to you in the other thread. Yes, we received a 1099-k when we shouldn’t have conflicting with what was published by Airbnb in the help center. 

We also received an email in Oct 2021, requesting we add taxpayer information due to changes in 2022. There was zero indication that my taxpayer info would be used for a prior year. The email we received is in the link below. 

https://community.withairbnb.com/t5/Airbnb-Updates/U-S-Hosts-Airbnb-requires-taxpayer-information-Su...

[Allen136]

Also, please see this article in the Resource Center that’s still live to this date. It was posted Feb 24, 2021 and updated December 9, 2021. What im trying to say is that according to Airbnb, this information is current as of December 9, 2021. (link and image below)

It very clearly states “Whether you receive a Form 1099-K from Airbnb depends on a few factors. Airbnb will send you a Form 1099-K for 2021 if all of the below apply:”

Airbnb even italicized the “ALL” as to bring attention to it. I’m my case, I wasn’t even close to the 200 transaction limit. 

Airbnb was also very specific in mentioning “for 2021” and “during the 2021 calendar year”

The article also clearly defines the changes in 2022. 

Again, we received a 1099-k in conflict with that’s published in multiple places on airbnbs site, including the resource center. How can you expect hosts to accurately plan our tax year if you say you’ll do one thing, then do the complete opposite?

https://www.airbnb.com/resources/hosting-homes/a/important-income-tax-changes-for-us-hosts-331

[Athena18]

Have you gotten to the bottom of it yet? There seems to be a procedure that can be followed for issuing 1099's that should not have been issued. I did not meet the 200 transaction requirement for the 2021 year and I was still issued a 1099. Please direct me to the person I need to speak to correct this error.

[Mike2552]

Nope, no resolution.   AIRBNB has thrown all of us under the bus evidently.

[Athena18]

I also received a 1099 form and my friend did too. We both had under 200 transactions for 2021. Based on what I read in this thread, Airbnb needs to correct this like Ebay and Paypal did for its customers. Who do we speak to about making this happen? Is there anyone who can help us?