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. 

[Sarah977]

@Jose-Humberto1  Here's a suggestion- find a qualified US accountant here in Mexico, one who prepares taxes for US expats living here, conversant with US tax exemption forms, who can explain this to you, as you refuse to believe either of the people who have responded to you here.

Nowhere on the W8BEN does it say it is only for foreigners living in the US. It is designed to, in this case, stop Airbnb from withholding US taxes on your Airbnb earnings.

[Jose-Humberto1]

I already did.  Both an accountant and a tax lawyer.  Unlike other people in the forum, I first consulted with specialists before raising questions. 

I never said W8BEN applies to anyone living in the US so I will not entertain the rest of the conversation.  

Have a good day Sarah. 

[Sarah977]

@Jose-Humberto1  I understand perfectly that you are a Mexican national, that your listing is in Mexico and that you and your business have nothing to do with the US. I am in much the same position, except I am not Mexican (although I live here)- I am a Canadian citizen, also not subject to US taxes.

Of course I read the first paragraph- I quoted it. You are misinterpreting it. 

You are the beneficial owner of an amount which the IRS and Airbnb are currently treating as subject to withholding tax.  In order for them to exempt you, you need to fill out and submit that form.

[Jose-Humberto1]

Actually it is the opposite but you are hitting bullseye now. 

Airbnb is treating my payouts to be subject to withholding taxes in the US when they are not.  This is the reason why Airbnb is unlawfully retaining my money. 

The IRS is not treating my payouts as taxable by the US (this would actually violate the internationally treaty between the US and Mexico, so please, do not make irrational assumptions). 

Here is what I think and why I wish to speak to someone in Airbnb qualifies to understand this matter before seeking external help. For a reason, unknown but still wrong, Airbnb is considering my payouts taxable pursuant to US tax laws, when they are not.  

[Michelle53]

@Jose-Humberto1    You have entirely missed the point of what this is all about. The American Rescue Plan was signed into law in 2021.

It changed the way payment processors in the US  issue 1099-k 's at year end, beginning in 2022.  Airbnb is a payment processor. 

Before, a 1099-k was issued to those receiving $20,000 in revenue and processing 200 transactions.

The threshhold has been reduced to $600 and no limitation on the number of transactions. 

On top of the new reporting requirements, the onus has been placed on US payment processors under US law to validate which persons receiving payments should or should not be subject to backup withholding. 

In the absence of a form which states you are not required to pay US taxes, you may be subject to backup withholding.    You are getting paid by a US payment processor. They are responsible for making sure you are not subject to US tax.   That is why you are asked to complete the form. To establish your non-US citizenship. 

This has nothing whatsoever to do with tax treaties. Tax treaties serve, amongst other things,  to ensure you are not taxed twice on the same income.    

Certainly, you can refuse to complete the form because you disagree with it. Airbnb, in turn, has to comply with US governing law, and therefore withhold tax from you, since you haven't demonstrated anything to the contrary 

[Jose-Humberto1]

No Michelle, you just does not seem to understand the issue.  This American Rescue Plan does not purport to tax foreign citizens, living abroad, having sources of income in foreign countries. I have demonstrated that I pay taxes in Mexico with my tax ID form and, in addition, it is prima facie not a taxable source of income if it is a listing of a Mexican property by a Mexican tax resident and citizen.  If you cannot understand this basic premise, I cannot keep explaining you basic tax law. 

[Michelle53]

@Jose-Humberto1  Perhaps your best option, then,  is to go and pay for a professional tax law consultant. 

[Jose-Humberto1]

I already did.  All my replies are based on profesional consultation.  This is why I am asking for a contact in Airbnb that can help sort this mistake before seeking consumer protection. 

[Sarah977]

@Jose-Humberto1  No one from Airbnb will help you sort the "mistake", because it isn't a mistake. It is something Airbnb was forced to do by the IRS, just as the Mexican tax dept. now requires that Airbnb charge and submit Mexican taxes.

[Jose-Humberto1]

The IRS did not force Airbnb (or anyone else) to withhold any amounts from foreign citizens.  What you are saying is just wrong. 

On a different note. How can you speak for Airbnb and say that Airbnb will not help me? Do you have any sort of affiliation or relationship with Airbnb other than being a hostess? If not, please stop spamming this thread. 

[Sarah977]

@Jose-Humberto1  Responding on a thread is not "spamming". 

No, I am just a host. But I know from my and other hosts' experiences with Airbnb that trying to get on-point answers or action from them is an exercise in futility. But go ahead and waste your time if that's what you want to do.

[Jose-Humberto1]

Thanks for sharing your experience (sharing your experience would have been enough and actually, maybe a bit helpful).  That does not qualify you as tax or legal adviser.  

Your interpretation of this point of law is just wrong.  

And, if Airbnb will unlawfully withhold payouts without even responding customer service emails, maybe even a class action is on its way (hopefully not necessary). 

FYI Airbnb asked me to provide my Mexican tax ID number as sufficient prove that I was a Mexican resident.  I provided this information months ago and when I pointed this out, they stopped replying. The withholding they are applying is the result of a mischaracterization of my tax status. I don’t think it is bad faith, that does not mean that what they are doing is right. 

[Andrea4731]

Jose, I’m not sure then why you came here asking for help as apparently you know everything & anyone that responds to you is incorrect. I think they are trying to help you because you are being paid by a US based company & have to prove that you are exempt from paying US taxes. But good luck talking to Airbnb CS… cause we all know what a joy they are to deal with. & maybe if you have the luck of reaching someone halfway intelligent, they will tell you exactly what these ladies have already said.

[Jose-Humberto1]

Hi Andrea, I do not know everything but I do know my tax status and residency and the scope of the newly enacted tax reforms. 

Anyway, if anyone knows of a channel to address this matter with Airbnb before seeking legal action, that’d be appreciated.   Thanks! 

[Sarah977]

@Jose-Humberto1  You can't contact a specific Airbnb dept, in this case their financial dept. You have to start by going through their robotic, clueless customer disservice dept. That is why we are telling you it's not likely to give you the answers you are looking for.