Airbnb unlawfully withholding amounts

[Jose-Humberto1]

Hi, I recently just had an issue that had not occurred before. 
airbnb withheld income tax as if I were a US resident. 
my listing is a Mexican listing, I am a Mexican resident (both physically and for tax purposes), my property is in Mexico, my guest was also Mexican, yet Airbnb withheld money from a payout as withholding for US income tax. They said that this applies to all US listings (mine is not) and that I have to fill out a form that is only applicable if I was a US resident (which I won’t fill out as it could have adverse tax consequences from other sources of income I have). 
customer service has been terrible to I was thinking of seeking consumer protection since Airbnb is not answering my emails anymore. 
Does anyone know if there is anything else I can do before seeking a legal action? Thank you. 

[Amanda1775]

@Jose-Humberto1 

I'm not sure if this applies to your situation, but the US taxes its citizens (not just residents) on their worldwide income no matter where they may reside, even if it's permanently outside of the US.

[Jose-Humberto1]

Thank you! Amanda. 
This would not apply to me as I am a Mexican citizen (and National) and I have never hold any citizenship other than Mexican. 
thank you though! 

[Michelle53]

@Jose-Humberto1   US law now requires everyone to submit their tax information or be subject to backup withholding. 

As a non-US resident you are required to fill out a W8BEN form. 

There is a help article here. 

https://www.airbnb.co.uk/help/article/3165/frequently-asked-questions-about-taxes?_set_bev_on_new_do...

[Jose-Humberto1]

Hi Michelle.  Your information is incorrect. US tax law requires what you say above only in connection with US Hosts who are citizens or US tax residents.  The link you posted says this expressly (which is consistent with international laws). 

“This year-end tax reporting primarily applies to US Hosts who are US citizens or US tax residents.”

I am a Mexica host, Mexican citizen and Mexican tax resident.  I have provided my Mexican tax ID so Airbnb is unlawfully withholding taxes.

Please do not post misleading information. It is important that Airbnb abides with applicable law.  I am asking for a contact in Airbnb who can take care of this irregularity before seeking consumer protection.

[Sarah977]

@Jose-Humberto1  Michelle has not posted misleading information. She is not a spammer, she is a long-time respected member of this forum who has provided you with relevant information you have not thoroughly read nor understood. Please don't be rude to people who are trying to help you.

The section of the link she posted that is pertinent to your situation is:

"If you are not a US Host and do not receive payouts from US listings, adding your taxpayer information will actively identify you as a non-US Host and exclude you from US tax information reporting, and from blocks to your calendar or pauses to your payouts due to Airbnb not having this information."

The W8BEN form will identify you as a non-US resident or citizen not subject to paying US taxes and once you submit it, Airbnb will stop withholding US taxes on your listing.

[Jose-Humberto1]

Hi Michelle. 

As you can see from my last reply, I have provided Airbnb with my Mexican tax ID number.  

Please do not spam this thread.  My situation is different from what that link refers to. 

Thank you. 

[Michelle53]

@Jose-Humberto1    The form requested of Non-US Residents is the W8-BEN form, to exclude yourself  from the requirements for backup withholding, as posted by Airbnb in the Help pages. 

If you aren't interested in filing that form, clearly nobody can help you further. 

[Jose-Humberto1]

I replied this earlier but for a reason my reply does not longer appear. 

A W8-BEN form must be filed by US foreigners when they are the beneficial owners of an amount subject to US income tax.  In my case, I do not have any amounts subject to US income tax as I am a Mexican resident and citizen, my posting is a Mexican posting, of a property located in Mexico (even my guest was Mexican although this is not relevant for purposes of income tax). 

To avoid missing the point of this thread, I will not continue commenting on replies that are not applicable to this thread.

My request to the Airbnb community is if anyone knows of a contact in customer service that can help me with this matter before seeking consumer protection. 

Thank you!

[Sarah977]

@Jose-Humberto1 

"Give Form W-8 BEN to the withholding agent or payer if you are a foreign person and you are the beneficial owner of an amount subject to withholding."

That is directly off the IRS website. "beneficial owner of an amount subject to withholding" means that Airbnb is currently withholding the tax on behalf of the IRS, incorrectly, and filling out the form will stop them from withholding it.

"Foreign person" does not mean a "US foreigner". The IRS does not consider any US resident or citizen, not matter where they live, to be a foreigner. All US residents and citizens are called "US persons" by the IRS, and are subject to filing US taxes on worldwide income even if they have never stepped foot in the US (those people are colloquially known as "accidental Americans"- they were born outside the US, have never lived or worked in the US, have never held a US passport, but are considered US citizens because at least one of their parents was a citizen when the child was born.)

[Jose-Humberto1]

Did you read the first paragraph?

…YOU ARE THE BENEFICIAL OWNER OF AN AMOUNT SUBJECT TO WITHHOLDING

I am not a beneficial owner of any amounts subject to withholding in the US. This is precisely why the W8BEN form is not applicable to me. 

On the second part of your still misleading reply, I am not a US resident to citizen. I am a Mexican resident and a Mexican citizen.  I pay taxes in Mexico, I do not have a source of income in the US, thus I do not have any amount subject to US withholding. 

[Michelle53]

@Jose-Humberto1     My friend who is a foreign citizen working in the US for a foreign consulate  (ie. foreign soil)  had to fill out a W-8BEN to indicate foreign status not subject to US withholding .

I think I have experience with this, where, apparently, you do not. 

Here are the instructions for completing the form.

https://www.irs.gov/pub/irs-pdf/iw8ben.pdf

Look under notes on p2 

If you receive certain types of income, you must
provide Form W-8BEN to:
• Establish that you are not a U.S. person;

Additionally, read the instructions on p6.

Line 2. Enter your country of citizenship.

 However, if you are a U. S. citizen, you
should not complete this form even if you hold citizenship
in another jurisdiction. Instead, provide Form W-9. 

Line 3. Your permanent residence address is the
address in the country where you claim to be a resident
for purposes of that country’s income tax.

[Jose-Humberto1]

Hey Michelle,

Your friend is right, if he is working in the US, that is income taxable in the US. That is why he needs to file the w8ben form.

Your friend’s situation and mine are completely different, I do not have any source of income taxable in the US.  

Nevertheless, you and @Sarah977  have given me another idea, I could file a report with the Mexican tax administration to confirm that Airbnb is not evading taxes in Mexico in connection with my listing. Although it was not your intention as you seem not to understand tax law, this has been helpful as a brainstorm.  Thanks! 

[Michelle53]

@Jose-Humberto1   Good luck with that. By the time you get an answer, you will have paid in a whole lot more in withholdings that you could have chosen to stop by completing the form as instructed.

[Jose-Humberto1]

Thank you! I still hope for Airbnb to be a profesional company.

You may not be concerned about filling out forms that are not applicable to you, in my case, I have other sources of income that could be affected by incorrectly recognizing that I have payments taxable abroad.  

P.S. people do not longer follow “instructions” when they are wrong.