How do you stop Auto Tax Witholding after coverting from Sole Proprietorship to C Corp?

Answered!
Robert5356
Level 2
Philadelphia, PA

How do you stop Auto Tax Witholding after coverting from Sole Proprietorship to C Corp?

Hello all. I have been hosting for over a year now and I've grown the business into a corporation but despite following all of AirBnBs directions I'm still seeing the 28% automatic withholding from my revenue on the app. So all of my revenue is going to my corporate bank account but being personally taxed 28% before it gets there. AirBnb is really forcing my hand here. Any help or advice someone can offer to make the withholding stop would be appreciated, thanks so much

1 Best Answer

@Robert5356  Try looking for it under your profile under the taxes section. Or use the "help" link and search for "W9". You should be able to fill it out online and just hit "submit". 

 

Beyond that, I have no idea how they do the internal processing. 

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8 Replies 8
JT-On-Behalf-Of0
Level 3
Santa Clara, CA

@Robert5356   You’ll need to add your Tax ID # to your Airbnb account if you haven’t already done so. Airbnb removes withholding tax if it doesn’t have a Tax ID # to report it against. 

Good luck and happy hosting!

Hi JT, thanks for the response.  I was instructed to do the aforementioned by support for each of my 10+ listings and did it but the witholding is still occurring for almost a week after updating.  Is there some sort of realistic window of time I can expect it to take place or do I need to continue to take action here? I need the 28% to operate so another week or two of this will really crush my books.  Thanks in advance.

@Robert5356  Is it possible that all bookings made before you added your tax ID will continue under the previous arrangement?  I would message @Airbnbhelp on Twitter about this.  https://twitter.com/AirbnbHelp

 

Michelle53
Level 10
Chicago, IL

@Robert5356   Did you submit an updated W9 form with the new information ?

Hi @Michelle53 thanks for responding.  I told the last rep I spoke with that there should be another tax form for me to complete and submit to them for the IRS reporting but they just sound dumbfounded and keep saying we are 'escalating your issue' so I must really be high on the Bnb priority list now lol.  

 

Any suggestion on how I can get this taken care of with some urgency because I may be out of business by the time AirBnb decides to act and being reporting the revenue properly. 

 

Thanks,

 

Robert

@Robert5356  Try looking for it under your profile under the taxes section. Or use the "help" link and search for "W9". You should be able to fill it out online and just hit "submit". 

 

Beyond that, I have no idea how they do the internal processing. 

Hey @Michelle53 finally!  Your advice led me to the Internal W9 Form that has to be submitted to update tax reporting.  Here is the direct link if anyone else is having a similar issue with automatic withholding:

 

https://www.airbnb.com/users/payout_preferences/taxes/forms/new

 

I just completed the W9 form and submittted it internally on the site so we'll see what happens, hopefully this stops the auto withholding. 

 

Thanks Again Michelle!

Hey Michelle, Did your withholding ever stop? I am running into the same issue.