The Revenue Commissioners are reminding people acting as hosts for the accommodation website Airbnb about their tax liabilities.

They are writing to in some 12,000 people "as reminder to include this income on their tax returns".

The letters will also give guidance on the correct tax treatment of this income, and details on how to correct returns already made, if necessary.

Revenue says it will also be carrying out follow-up compliance checks.

Under the Taxes Consolidation Act 1997, Airbnb has provided details of payments made to its customers in 2014, 2015 and 2016.

In a statement, Revenue says: "It is standard Revenue practice to constantly monitor new and emerging risk.

"Revenue is alert to the risks posed by online business in all its forms, including the provision of short-term accommodation.

"To maximise compliance among recipients of income from the provision of short-term accommodation, Revenue will also carry out a range of follow-up compliance checks to ensure that returns are filed and are correct."

it adds: "The vast majority of taxpayers are fully compliant with their tax obligations.

"Revenue supports the high level of voluntary compliance by providing service to make it as easy as possible for taxpayers to comply with their tax and duty obligations, by being pro-active in helping taxpayers meet their obligations and through early and effective intervention in respect of those who do not comply."

A report in January found Airbnb generated an estimated €506m for local residents and businesses in Ireland.

The Irish Insights report said inbound guest growth of 63% spread across all regions in the year between November 2016 and November 2017.

The report added that the typical Irish host earned around €3,500 per year, while a typical listing was shared for 37 nights.