Is anyone aware of an IRS code that requires mortgage company to report insurance payments to subcontractors to the IRS. A little back ground. I'm in the process of making repairs to my home that was damaged by hail in the spring. I'm acting as my own GC, which is allowed in the state of Texas. The mortgage company is wanting W-9 from all contractors and subs that I use because they don't approve of me being my own GC. They say it is required by them from the IRS. There was no mention of this when the original claim was filed and they endorsed the first check and sent it back to me. I disputed the damage with the insurance company and it increased the claim by about 15k. I have already repaired the disputed damage (A/C and fence) and paid in full. The mortgage company still wants to put remaining monies in escrow and disperse as work is completed. I've tried doing a search for the code and could not find anything. I'm not trying to scam them, I'm just trying to get the work done and they are just putting more hurdles in my way to be able to continue repairs. Thanks for any responses
- posted
7 years ago