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

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