Airbnb Hit With $2 Billion Tax and Penalty Over Transfer Pricing

Aug. 2, 2024, 7:33 PM UTC

Airbnb Inc. says the IRS is improperly valuing its intellectual property to impose billions in taxes and penalties.

The company petitioned US Tax Court on July 30 to contest an IRS determination that it underpaid its taxes by $1.33 billion for 2013 as well as the $573 million in fines tacked on by the IRS in the process. The IRS had already claimed Airbnb understated its income by $4.2 billion based on resources and rights it made to its foreign affiliate, Airbnb International.

The company’s international arm was formed in 2013. Airbnb entered into a technology and intellectual property licensing ...

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