Why Insurance company's request your tax id number!!!!

ROBERT Said: To get a state license in florida you have to understand business law and have some knowledge of it to pass the state test, to ask such a question on here shows your inexperience and to say your trying to gain information on here would indicate you wont be in business long.

Yes Mr. Robert, like I said originally me and the other roofer was arguing because I no that the taxes has to be paid at the end of the year on the money you made, but he is yelling and saying it doesn't, okay!!!

And yes I did read my Contractor's manual, and read all about it, thats why I was arguing telling him he does not know what he is talking about, and he kept saying he does and he doesnt pay taxes.

You must be a genius and memorize all the books word for word, like you said you have to have some knowledge and not now everything and that would not prevent you from not passing the test, and another thing is you would be surprise how much contractors don't have a clue.

ED the roofer: he is a retailer he sells Metal and he is also does on site fabrication.>>>

I just thought of another possibile angle to the relayed question from her friend.....

Unless the person is referring to purchasing materials with a Retailers License, which I don't think was what was being referred to.

Also, regarding sales taxes, not income taxes, when working for an entity that has Tax Exempt status, such as a Bona-fide Church, Governmet Institution, or a TIF District, (Tax Increment Financing), then no sales taxes would need to be paid nor collected on the job.

Ed>>>

You pay the sales tax when you buy the materials, so that has been paid. If you do the roof for 20,000.00 and your costs are $22,000.00 at the end of the year it will go down as a loss of $2,000.00. If it costs you $15,000.00, you will have a gross profit of $5,000.00. You need to take of the business decuctions from this at the end of the year, so who knows how much money you will make.

If you take the check and cash it and don't pay anyone, you can make a lot of maney. It will not last very long however, because the material suppliers and the workers will not be fooled twice! good luck.>>>

The other roofer would be refering to sales tax which we dont charge here for home improvement, but if you do you turn it over to your your local tax man.>>>

To get a state license in florida you have to understand business law and have some knowledge of it to pass the state test, to ask such a question on here shows your inexperience and to say your trying to gain information on here would indicate you wont be in business long.>>>

This question makes me really wonder how you would have got licensed in florida as this is a very basic part of being in business.>>>

I agree Jed. (but now my feelings are all hurt and stuff...Ed is the picture of patience and deserves the credit given re: the vendor requirement...BUT!!! Grrr! the ignorant other guy is almost certainly confusing gross rec'ts reporting with sales tax reporting so I'm going to sulk in the corner until somebody at least offers me 50% credit for trying to answer without having an 'attitude.' :S )>>>

LOL........You got ballz, I like that....>>>

Yes please, keep your mouth's shut and keep your cranky ness to yourself. Your old I am young, obviously you have a lot more experience than I do. and as for you roofrite you never have anything good to say so you should keep all your comments to yourself. You remind me of my know it all high school teachers that acts like you cant ask them anything. I am asking anyone that is willing to answer!!!!

The only person that answers questions without an attitude and also give full details and has patience is ed the roofer. Thanks I appreciate it. My quetion has been answered.>>>

...................no man, I'm the same way.....just keeping my mouth shut, for a change..>>>

Man I must be getting cranky in my old age. You guys sure have a lot more tolerance than I do when it comes to questions like this from someone who obiviously has no clue as to what they are doing.>>>

What does your accountant say?

I know that regardless of weather your company receives a 1099, you must pay taxes. Report your gross. Deduct your expenses. Pay taxes on your profits like every other law abiding citizen in this country.>>>

msshottet Said: Me and another roofer are arguring about this question?

When you are hired to do a roof and the insurance company is paying and not the homeowner because the damages were caused by a natural disaster. Why does the insurance company want the contractor to fill out a request for taxpayer identification Number and Certification Form.

If you are charging 20,000.00 to complete the roof and the insurance company pays you that much doesnt the insurance company report that they paid you that much money ti IRS and then you will have to pay taxes on all of it (or the profit).

This other roofer is saying because he did not charge the homeowner any taxes he does not have to pay any taxes to Irs.

What is your take on this? I need to know how this works and why they request your tax id # and what they do with it.

Your response to this question is greatly appreciated.

You are at that point in time, if the check is being made out directly to your company, or even if it is being made Dual Party, To the Home Owners Names ans Your Company's Name, then you are considered a vendor.

They must have your Tax ID information to be able to send out the check to you, because at that time they are responsible to reporting that payment and to whom, to the IRS at the end of their fiscal year.

Yes, it is income to your company, so the profits from that revenue must be reported on your taxes as such and you should get taxed on it.

To do otherwise would be a very severe fraudulent cheating on your taxes.

Are you concerned because you felt that the money should just get cashed an put into a secret bank account or just cashed at the home owners bank and allow the funds to go unreported to the IRS?

At the end of the year, your company and the IRS will receive a copy of the 1099 form, which shows how much that they paid to you and rightfully so, because even if they did not report that payment to you to the IRS, you would still be responsible for including the amount on your tax return.

Ed >>>

Let me guess, the other roofer lives in his van and has a kickin' bong collection.>>>

"...doesnt the insurance company report that they paid you that much money ti IRS and then you will have to pay taxes on all of it (or the profit). "

Absolutely. All receipts have to be reported.

"...he did not charge the homeowner any taxes he does not have to pay any taxes to Irs"

Unless he is referring to collecting and transmitting sales tax, something that is usually due the state, (not the IRS) he is a bit confused to say the least.

Sit down with an accountant and make sure all y'all have it straight.>>>