Disability Insurance Companies Defrauding Claimants
According to a story posted on BenGlassLaw.com, some major disability carriers are basically defrauding claimants.
At least one insurance company is sending 1099s to people with whom it settled in the previous year. One major company is even telling the IRS that the settlements are taxable benefits.
This is false. If you receive disability benefits and paid the policy premiums, any benefits are not taxable.
Even though the major insurance company admits that it knows the settlements are not taxable, it is sending the 1099s to the IRS anyway.
This is pure fraud by this company. It also means that the disabled person will spend time and money fixing the mistake.
These insurance company tactics should be stopped in their tracks immediately so people who are already disabled aren't forced to spend any more time and money messing with the insurance company or its mistakes.
