Under IRS Section 4371, an excise tax is levied on premiums paid by U.S. citizens (policyholders) to foreign insurers or reinsurers. This tax also applies to premiums associated with foreign life insurance transactions involving non-resident agents, solicitors, or brokers.
Here’s a step-by-step guide for filing the Foreign Insurance Excise Tax online using our IRS-approved portal, Simple720:
Create an Account: If you’re a new user, sign up for a free Simple720 account. Existing users can log in with their credentials.
Provide Business Details: For new users, the next step is to enter your business details. Click on “Add New Filings” and click on “Add New Business” and complete the required fields, including:
Business Name
Employer Identification Number (EIN)
Business Type (select from the drop-down options)
Business Contact Information
If you’re an existing user, simply select the stored business name from the database.
Choose Form Type: Select “Form 720 (Quarterly Federal Excise Tax)” as the form type. Accurately provide the tax year and quarter you are filing for, then click “Proceed.”
Select Foreign Insurance Tax: From the left-hand menu, Select the “Policies issued by foreign insurers (IRS number 30) section Under the Foreign Insurance Tax dropdown.
Enter Tax Category Details: Input the required details, including the type of event from the dropdown, tax date and premium amount paid.
The portal will automatically compute the tax amount based on the entered information and display the calculated total on the dashboard.
Choose a Payment Method: Review your information and choose one of the IRS payment methods:
Electronic Funds Withdrawal (Direct Debit)
EFTPS - Electronic Federal Tax Payment System
Complete Your Filing: Once the payment is completed, your Foreign Insurance Excise Tax filing will be submitted within minutes.
By following the steps outlined above accurately, you can complete your Foreign Insurance Excise Tax filing quickly and efficiently, usually within just a few minutes.
WRAP:
By the end of this blog, you now have a clear understanding of the detailed steps involved in filing your Foreign Insurance Excise Taxes online using Simple720
Create your account with Simple720 today and file your federal excise insurance taxes today!