22 Replies Latest reply: Oct 10, 2019 11:02 AM by bobbie32 RSS

    Do you trust VRBO with reporting your tax information to the IRS

    martyp Contributor

      I am sure that I have been labeled as a whiner and complainer. In the most recent discussion, what is acceptable to some vs others is a matter of opinion. However, in the case of accounting there is no opinion, there are hard facts and numbers.

       

      Let me illustrate why I am concerned with VRBO’s ability to report to the IRS.


      I have had 2 cancellation refunds and 1 damage deposit refund. VRBO has gotten all three wrong. Let me illustrate with a portion of my downloaded  VRBO transaction file for my rentals.


      REFUNDS Annotation 2019-08-26 101657.png


      Row 11 is a reservation and row 10 is a cancellation for that same reservation. The amount paid buy the traveler (cell P11) and the amount refunded to the traveler (cell P10) cancel out. So far everything is good. HOWEVER, take a look at the “taxable revenue”, column L. The “taxable revenue” refunded (cell L10) is ZERO, the taxable amount refunded does not cancel out the “taxable revenue” paid (L11).  If VRBO reports your taxable income to the IRS, the amount will be more than your actual Taxable Income.


      The same thing happened on the second cancellation, rows 7 and 8.


      The refundable pet deposit did not create a taxable problem, but it is an accounting error that drove me crazy when I tried to reconcile my bank account. Row 5 is the reservation including a refundable pet damage deposit; Row 4 is the refund of that $300 damage deposit. Take a look at column U, “Deposit Amount”. When I tried to reconcile the VRBO total “deposit amount” with my actual total deposited amount, the numbers did not match. I went crazy trying figure out why. I then went item-by-item and the values in Cells U4 (-$291) and U5 ( $3254.65) did not exist in my bank records. Those two numbers are related to the PET DEPOSIT and VRBO does not deposit damage deposits into my bank account.  This is simply defective accounting software.


      As I have said in another thread; If I had written software as bad as VRBO software, people would have died. VRBO is not in a life/death situation, but they ARE dealing with finances ...your money and your taxes.