Expert: Richard Hixenbaugh - 9/17/2009

Question
I am a self employed fitness and tennis coach. I was in a car accident one year ago. The other driver ran a red light, admitted to the police, simple case. I've been treated for 5 months (medical costs around $8,000). Now I sent my demand letter to the insurance company (6 pages) and 50 pages supplementing documentation of everything possible valuable to my case. I am claiming lost income for almost one month as I couldn't perform the heavy physical work with clients. I printed out my calendar with the appointments, the yearly calendar of average monthly income, and I have statements from my clients about their training with me, the frequency and their fees.  Now the insurance received my letter and first thing they are asking for is the last two years' tax return. My question is, do they have a right to see it? Do I need to supply it? I am aware that it is "suspicious" if I don't want to, but last few years, my tax return doesn't reflect my earnings and lifestyle now, as I was in a relationship where I got a lot of help, and was working much less. What are my options? What shall I reply to the insurance company?

Answer
Hi Suzanna,

You can tell them that you have already provided enough information to substantiate your claim, however they can still say that it is not enough. Or you can provide the tax returns with the explanation about your income being lower than currently due to the relationship you were in. Because you are self employed they are trying to be sure that you actually work in this field and have the tax return to prove it. Which ever way you decide to handle it the end result will likely be a negotiated settlement. Keep in mind that the insurance company has no interest in properly compensating you. Their only interest is getting out as cheaply as possible.

If at any time you feel you are being treated unfairly, you should seek the advice of an attorney.

I hope this helps
Richard Hixenbaugh