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Pennsylvania Department of Revenue

Instructions for RCT-123

Gross Premiums Tax - Surplus Lines Agents

RCT-123 I (04-16)

electronically through e-TIDES at

with eligible surplus lines insurers and

GENERAL INFORMATION

How-

other non-admitted insurers through

•

ever, electronic filing of the tax

duly licensed surplus lines producers.

REMINDER

report is not available. The report

The tax is in addition to the premium

All payments of $1,000 or more

should be completed using the

charged by the insurer. The tax is levied

must be made electronically or by

computer-based

fill-in

form,

on the insured that procured the

certified or cashier’s check remitted

printed and submitted by mail to

insurance with eligible surplus lines

in person or by express mail

the department. The form can be

insurers or other non-admitted insurers

courier.

•

saved

electronically

for

your

and is collected and remitted by the

Use only whole dollars when

records.

surplus lines producer. The tax on any

•

preparing tax reports.

•

unearned portion of the premium must

One RCT-123 must be filed for each

be returned to the insured by the

Taxpayers may request a 60-day

agency and report for all branch

agency or agent. Political subdivisions

extension to file this report by filing

offices and/or all individual agents

are exempt from this tax.

REV-426.

filing under the same FEIN.

•

Location of Risk

NOTE: The automatic PA

The tax liability on RCT-123 cannot

If the policy involves risk located in

extension provided by Act 52

be less than zero; instead the tax-

multiple states including Pennsylvania,

of 2013 to those with valid federal

payer must file a petition for refund.

then the taxable premiums shall be

extensions DOES NOT apply to this

Annual Report Checklist: Make sure

levied as follows:

tax.

•

you include the following to file your

If Pennsylvania is the home state of the

The penalty imposed for failure to

annual report properly and completely:

•

insured, the gross premiums shall be

file timely reports is now a minimum

Negative amounts must be written

taxable to Pennsylvania. For more

of $500, regardless of the deter-

using a minus sign preceding the

information, see 40 P.S. § 991.1602, 40

mined tax liability, plus an additional

number. Do not use parentheses.

P.S. § 991.1621 and 40 P.S. §

1 percent of any determined tax

•

991.1622.

liability over $25,000.

•

Complete RCT-123, Gross Premi-

ums Tax Report for Surplus Lines

Revenue ID, Federal Employer

Use ONLY the most current, non-

Agents

Identification Number (FEIN),

year-specific

tax

form

and

•

Parent Corporation FEIN, Name

instructions for filing ALL tax years.

Attach copies of the monthly 1620

and Address

If an amended report must be

reports as filed with the Pennsylva-

The Revenue ID number, FEIN, name

filed, taxpayers must use the

nia Surplus Lines Association on

and complete mailing address must be

most current, non-year-specific

behalf of the Pennsylvania Insur-

provided. If the taxpayer is a subsidiary

tax

form,

completing

all

ance Department.

•

of a corporation, the parent corporation’s

sections of the form. REV-1175,

Corporate officer’s signature on

FEIN must be provided. Also provide the

Schedule AR (explanation for

Page 1 and preparer’s signature

telephone number and email address of

amending), must be included

and PTIN on Page 2, if applicable

the taxpayer.

when filing an amended report.

•

A signed copy of all three pages of

Tax Year

RCT-123 is available as a fill-in form

the RCT-123 tax report and the

Enter month, day and year (MMDD

on the department’s website at

monthly 1620 reports must be filed

YYYY) for the tax year beginning and

•

electronically with the Pennsylvania

year (YY) for the tax year end.

One extension coupon, REV-426,

Surplus Lines Association in the

will be used for all specialty taxes.

Report Due Date

Electronic Filing System (EFS).

This report is due on Jan. 31 for the

The coupon and the tax report will

no longer be mailed. These forms

Imposition, Base and Rate

preceding year ended Dec. 31. If Jan.

are available as fill-in documents

The gross premiums tax is imposed

31 falls on a Saturday, Sunday or

the

department’s

website

under the Act of May 17, 1921, P.L. 682,

holiday, the report is due the next

The REV-

No. 284 at the rate of 3 percent on

business day. The penalty imposed for

426 extension coupon can be filed

gross premiums of insurance procured

failure to file timely reports is now a

RCT-123

Instructions For Rct-123 - Gross Premiums Tax - Surplus Lines Agents - Pennsylvania Department Of Revenue

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