Form Ins-7 - Maine Revenue Services Surplus Lines Premiums Tax Annual Reconciliation / Return - 2010 Page 2
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1
2GENERAL INSTRUCTIONS
WHO MUST FILE
greater of $25 or 10% of the tax due, unless the return is fi led
more than 30 days after the receipt of a demand notice from
Every licensed producer with surplus lines authority who
the State Tax Assessor, in which case the failure-to-fi le penalty
provides contracts written on risks located or resident in the
is 100% of the tax otherwise due. The penalty for failure to pay
State of Maine.
a tax liability timely is 1% of the outstanding liability for each
month or fraction thereof during which the failure continues,
Election to Report on Behalf of Employee Producers. An
to a maximum of 25% of the outstanding liability.
agency may elect to report and pay surplus lines premiums
tax on behalf of all of its employee producers. To make
this election, the agency must fi le an Application for Tax
WHOLE DOLLAR AMOUNTS
Registration, completing sections 1 and 11. Enter the name
Enter money items as whole dollar amounts. Drop any amount
and federal ID number of the agency in section 1 and enter
under 50 cents to the lower dollar amount and increase
a note in section 11 stating that the agency is electing to fi le
any amount 50 cents through 99 cents to the higher dollar
on behalf of its producers.
amount.
WHEN TO FILE
FOR INFORMATION AND FORMS
The annual return and the fi nal tax payment for 2010 are due
Web site:
March 15, 2011.
Address:
Maine Revenue Services
PO Box 1060
ESTIMATED PAYMENT OF TAX
Augusta, ME 04332-1060
Insurers must make estimated tax payments for the calendar
Telephone:
(207) 624-9753
year. Required estimated payments for 2011 may be based
either on the 2011 tax liability or the 2010 tax liability. April
Monday-Friday, 8 a.m.- 5 p.m.
and June installments must each equal at least 35% of
Order Forms:
(207) 624-7894
either the 2010 total tax liability or 35% of the 2011 tax
due. The October installment must equal 15% of either the
STATUTORY REFERENCES
2010 total tax liability or 15% of the 2011 tax due and the
Title 36 MRSA §§ 2512 through 2530.
balance due must be submitted with the 2011 Form INS-
7. An insurance company with an annual tax liability not
SUPPORTING RECORDS
exceeding $1,000 may fi le only an annual return with payment.
Taxpayers should be prepared to provide supporting
documentation for reported amounts. Adequate records must
INTEREST AND PENALTIES
be maintained in a manner that ensures their accessibility by
For calender year 2011, the interest rate is 7% , compounded
the State Tax Assessor for a period of at least six years.
monthly. The penalty for failure to fi le a return on time is the
NOTE: Certain taxpayers with large annual tax liabilities are required to remit tax payments electronically. See Maine
Rule 102 on the MRS web site (select Laws & Rules) for details.
LINE INSTRUCTIONS
Line 1. Gross Direct Surplus Lines Premiums
2b. Dividends paid, credited or allowed on direct
Enter the gross direct premiums upon risks located or resident
premiums
in Maine. A premium is an amount paid or payable for an
insurance policy, including all fees, such as membership,
Enter the amount of direct dividends paid to the policyholder
policy, survey, inspection, service and finance fees in
during the tax year. Include dividends paid that were subject
to the Maine surplus lines premiums tax in a prior year, as well
consideration for an insurance policy.
as those that were paid in 2010 and included on Line 1.
NOTE: Agencies reporting on behalf of employee producers
must attach a schedule indicating the name, social security
Lines 6. Prior Payments
number and portion of taxable premiums attributable to each
Enter the overpayment carried forward from the previous tax
producer for whom the agency is fi ling.
year and any estimated payments made for the current tax
year.
DEDUCTIONS
2a. Return premiums
Line 9a. Portion of overpayment to be APPLIED to next
Enter the amount of direct return premiums that were
year’s ESTIMATED tax
returned to the policyholder during the tax year. Include
Use this line only if you want to have all or part of the
return premiums that were paid and subject to the Maine
overpayment on line 8 applied as an estimated payment to
surplus lines premiums tax in a prior year, as well as
next year’s Maine surplus lines premiums tax.
those that were paid in 2010 and included on Line 1.
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