"...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). "
Absolutely. All receipts have to be reported.
"...he did not charge the homeowner any taxes he does not have to pay any taxes to Irs"
Unless he is referring to collecting and transmitting sales tax, something that is usually due the state, (not the IRS) he is a bit confused to say the least.
Sit down with an accountant and make sure all y'all have it straight.>>>
But does taxes have to be paid>>>
If the check is made out to your company, they will send you a form 1099. It requires a ID #>>>