Airbnb is withholding taxes until I update a W-9. Need tax advice

4 Replies

Hello I currently have three airbnb listings and I've noticed that in my payouts I've recently been getting a negative sign.  Seems like my money was going somewhere else.  Then I check my email and receive this notice 

NOTE: We were required by the IRS to withhold tax for this transaction.

Hosts with a US taxpayer ID number may submit a tax form to prevent future tax withholding.  

Airbnb is telling me I am required to fill out a W-9 or they will keep witholding my money to the IRS. I haven't filled out the form yet because it has an option to put my social or EIN. I haven't incorporated or opened an LLC yet. I need tax advice. Do I need to go to a CPA or Tax attorney and are there any recommendations for someone in South Florida. I also have a full time job.

You should consider speaking with a CPA.

It sounds like Airbnb is withholding taxes under the backup withholding rules. They just want to verify you are a U.S. citizen/resident. Once you furnish the W-9, they should stop the withholding. I presume they are withholding at a 28% rate (standard for backup withholding).

If you aren't incorporated now, you can't go backwards to try to push what you've received so far into the corporation, so dithering over an EIN vs ssn is gaining you nothing.

Fill it out with your SSN and if you incorporate later, switch to an EIN.