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

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.>>>

LOL.....@ CIAK

thanks for welcoming me!! :)>>>

So ya th'o't yo' uh roofer ?? Welcome aboard ta da fly world o' roofing contractor extradinaires what 'chew thinking girlfriend ? :laugh: :laugh: Whoa !! B) B)

And now roofen ticklin her fancy Rubbin her toes Muzzle ta muzzle, now anyfin' goes As dey wriggle, an' girlfriend starts ta giggle

And dey whirled an' dey twirled an' dey tangoed Singin an' jingin da jango Floatin like da heavens above It looks like roofing love

La da da da da .. and shit. :woohoo: :woohoo: You go girlfriend>>>

OK kid, you're in :laugh:

.>>>

for wywoody:

after hurricane andrew my dad and brothers moved down here from new york, and they purchased a house in miami florida, the house was completly destroyed, when you walk in the wall were torn off, the floor was messed up, and you can look straight through the roof and see outside. They secured they house and then me and my mom and sister came down here to live from new york. shortly after my parents deceided to build a big addition on to the back of the house. He pulled a homeowner permit and did all the work himself. Thats when I became involved and curious! They dug the floor with a shovel, mixed cement by hand, poured the columns with a bucket. etc. and I use to try and mix the cement and dig the ground etc. I was so fascinated with what they were doing, after that I started going to work with my dad every chance I got Summer Vacation, Spring Break, Christmas Break, weekends etc,, to his remodeling jobs, tiling jobs, sheetrock,etc. Out of all of he jobs he did I was most fasinated with the roofs. I use to climb up the ladder, and snap he chalk lines, put down the tin tags, and nail them and put down the shingles and nail them use the bull as needed, and my favorite part was cutting the tabs to make the ridge cap and doing that. At that time we did not have a roofing gun so we were doing the entire roof with hammer and nails, and I loved it, I thought it was neat and I would go to the jobs when hot mop was being done and tile and everything, and I learned it, I learned how to do al the paperwork, I learned how to measure roofs I learned how to find pitch and add up measurements and calculate the sq.ft. etc. and I loved it, so when I was about 14yrs I said I wanted to be a roofer when I grow up. I worked in local flea markets doing hair, I went to college to study architecture, because thats what people said I should do it, and I took over 14 classes and i had a reality check i said to mysel why am i doing this this is not me i dont like architecture i am going to do what i want to do, so i changed my major to building construction. etc. Out of everything I did i liked roofing the best. I started buying my roofing books and reading them tabbing them highlighting them etc. and I took my state exam. I passed one part the first time i took it and the other part the second time i took it and about a year and a half after that i applied for my liscense and got it a week and a half later. and I am 26 years old now.

I hope this is a good enough explanation for you and every one and if not let me no what else you would like to know so you can stop wondering.

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I have nothing to add!>>>

The numbers are recorded in many places, when you apply for a new liability policy they all ways ask for your gross receipts from the year before so they can prorate you policy fee, if so happen not to tell the truth they may something or not. They just may wait until you first claim then they can bring up that you have comitted a fraud in acquiring your policy and may not pay the claim, the dept of labor wants to see what you are doing, IRS wants to know w/c wants to know, if you grossing x amount of dollars they can calculate they rough labor cost and see if you did provide a false w/c bill. Then watch out for the Black Helo's lol>>>

Thanks Old School and Ciak>>>

Another link to query ( call attention to ) http://www.articlesandhow.com/business-commerce/article1535.htm Not only if you are thinking of selling also if you are fore of mind to set up a business ;) ;)>>>

mss What we are seeing here is........ Let just say Robert , because he is legitimate professional . Has built into his company model a method to deal with this . Doesn't need to remember what he has to do. If asked , would be able to show you or the proper authority or whom ever . That is the beauty of setting up a real business model. We know you are just starting out from your questions. My question to you . Do you have a business plan ? If you do why doesn't it contain a provision to handle something like this . It is every day business. What say you ??? If you can it would help in this scenario if you lose the attitude . Most everyone in here ( not all ) are professional and are willing to help . Some are worker blue colar types others professional who understand the business in side and out. Where are you on this scale ? Worker employee ...........Business owner running office ????????>>>

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>>>

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 )>>>