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Re: Insurance billing

If the practice where you work bills under your social security number, it's very important that you get your hands on the 1099s issued by the insurance companies under your social security number.

When it comes time to submit your tax returns, make sure the preparer includes that income on your tax return, and then shows the amount that was "refunded to your employer". You should also get a letter from your employer detailing this relationship to keep in your tax files.

If this step isn't taken, expect to receive a notice from the IRS assessing additional taxes on this income you didd't receive. It's easy enough to explain to the IRS what happened, but you'd be better off to be proactive with this matter.

Zip Code: 01801

Re: Re: Insurance billing

do you have other clients who are in similar situations? How do I show proof that the insurance money taken in is directly given/refunded to my employer?

Zip Code: 07801

Re: Re: Re: Insurance billing

We have a lot of clients in this situation. You can show proof a few different ways.

Start by taking a look at the address on the 1099 forms. It's probably the address of the practice.

You should also request that your employer provide you with a letter on their stationary detailing that you're required to refund these insurance checks to them.

Finally, I just had a client audited, and this was one of the issues. The IRS agent asked the insurance companies for some of the cancelled checks, and they took a look at the endorsement on those checks.

I don't think this is a huge issue to get worried about.

Zip Code: 01801