@Mike-And-Jane0 The point I'm trying to clarify is that withholding is not Airbnb's money.
The split second the withholding occurs, it becomes the "property" of the IRS. They have no idea at the time the withholding occurs which jurisdiction it belongs to. The only thing they know is that the taxpayer information has not been provided. Small claims court or otherwise, after the withholding occurs, it is no longer with Airbnb.
It basically gets held in a liability account to pay over to the IRS. Depending on the payment schedule they are on for withholding, it likely left the building already.
For large amounts of tax, it's all automated and submitted electronically.
As far as what paperwork gets issued to folks caught up in all this, all I know is that 1099-k reports are generated at year end for income of $600 or more. Possibly this information will be online for people to review in the earnings report