US taxes with held

[The-Pvkid0]

I am a Mexican citizen and my Airbnb Properties are in Mexico. Airbnb withheld US taxes from 2 of my rentals and when I called them they said it was a mistake.  I asked how do I get that money back that they withheld and they told me it was imposable to get it back once it was sent to the IRS.

I am not sure why I should have to pay for Airbnbs mistake?

Is there a way to appeal this decision as it seems very unfair to me.

[Donna240]

You should NOT have to pay for their mistake and they should not ask you to. I think you need to talk to a supervisor. All businesses have to absorb costly errors made by employees and these losses can be deducted from their profit on their own taxes. 

[The-Pvkid0]

I agree but I have opened this case twice and they just close the case within 48 hours. When I call they inform me the case has been closed. I have been dealing with this for 3 weeks now, I am getting tired.

[The-Pvkid0]

I tried one more time to get Airbnb to reconsider and here is the response from them.

"

This is Devon with Airbnb's specialized team thanking you for reaching out to us regarding your tax withholding. I’ve consulted with my team about your request. Upon review, we will uphold our decision as previously outlined, and we now respectfully consider this case closed.

Your request for a refund of the taxes that were withheld from your payout has been taken into careful consideration. Given that Airbnb cannot refund or reimburse any money that was withheld by the IRS, our original decision will be respectfully upheld and this case is now considered closed.

Best,

Devon"

I asked the question why the taxes were withheld to begin with but they would not answer that question. 

[The-Pvkid0]

Another response from Airbnb

"Devon J, Jan 17, 08:10 PST:

Thank you for your response

As a US company processing payments, we're required by US law to collect taxpayer information from hosts who appear to have US-sourced income.

When a host starts to get close or has met the IRS threshold ($20,000+ earned & 200+ transactions), and they have not added their taxpayer information, we send an email titled 'Important: please take a minute to add taxpayer info', reminding you to add your taxpayer information.

Once taxpayer information is added, this backup withholding would no longer be a requirement.

If you have any further questions or concerns, we encourage you to reach out to a local tax professional.

Kind regards,"

What still puzzles me is why as a Mexican citizen with rentals in Mexico would I even bother to have to bother to add taxpayer information for anything other than my own country. Seems Airbnb is worried about coving their ass and no one else's.

[Helen3]

Why don't you approach them on their social media and also go to the media and tell them what Airbnb has done.

Also tweet to the Airbnb business owners and their ambassadors.

How much is involved by the way.

It's irrelevant whether or not they can get the money back. 

Their mistake you shouldn't be out of pocket.

[The-Pvkid0]

do you really think that would be a good idea? Have you ever heard do not bit the hand that feeds you?

[Ac12]

Something similar has happened to me, I have lost over USD 8000 in tax with holding even though all my properties are in Canada. I have nothing to do with USA. 

[Adriana68]

Lucky I only lost a few hundred bucks. The one thing I know is there will not give it back. I tried. My properties are in Mexico and have nothing to do with the USA but it does not seem to matter.

[Umar-and0]

This happened to me as well. Almost $1k was remitted by IRS. Have any of u contacted IRS and ask them to return the money back ?

Please let me know

[Susan17]

@Umar-and0 

See the thread below for many aimilar casea. 

IRS/AIRBNB - WRONG TAXES RETAINED OUTSIDE USA 
https://community.withairbnb.com/t5/Help/IRS-WRONG-TAXES-RETAINED-OUTSIDE-USA/td-p/903456

[Michelle971]

Im furious the same has happened to me 

[Cobi13]

AirBnB automatically assigned me a W-8BEN cause they 'assumed' I wasn't a US resident for tax purposes?

Just got my first payout and they withheld over $700 !!! 

So angry.