How does an insurance agent account for revenue and income? I collect full premiium, then send 85% to insurers and keep 15%. The 15% is my revenue prior to expenses.

rspoth · ‎March 31, 2020

MinhT1 · ‎March 31, 2020

As an insurance agent, you collect premiums on behalf of insurance companies and place them in your trust account. You are only the fiduciary of the trust account.

Therefore, you only count as revenue the commissions earned that you transfer to your operating bank account.

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MinhT1 · ‎March 31, 2020

As an insurance agent, you collect premiums on behalf of insurance companies and place them in your trust account. You are only the fiduciary of the trust account.

Therefore, you only count as revenue the commissions earned that you transfer to your operating bank account.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

rspoth · ‎March 31, 2020

Thank You,

I have been sending in paper returns. Several years ago the IRS sent me a letter saying that they thought that I made $2,000,000. That is because that is what the 1099s said - which included the insurer's money that I hled in the trust account. They backed off so it turned out OK in the end. I will take your advice so that I can file electronically. Thank You

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How does an insurance agent account for revenue and income? I collect full premiium, then send 85% to insurers and keep 15%. The 15% is my revenue prior to expenses.