Form 63-23p Instructions printable pdf download

2012 Form 63-23P Instructions

Who Must File Form 63-23P?

• a Certificate of Contribution from the Property and Casualty Initia-

tive from those companies claiming a lower tax rate and those com-

All domestic insurance companies subject to Massachusetts General

panies claiming a retaliatory surtax credit; and

Laws (M.G.L.) Ch. 63, secs. 22 and 22A must file Form 63-23P. Life

insurance companies and ocean marine business companies are not

• a statement from those companies who are members of the Mass-

required to file this form.

achusetts Property Insurance Underwriting Association (Fair Plan)

and/or Crime Insurance Program — the statements must indicate the

A domestic company is a company incorporated or formed in the

amounts disbursed, the percentage of participation, the policy year

Commonwealth.

and whether the premiums associated with the disbursement were

All classes of foreign insurance companies subject to M.G.L. Ch. 63,

included on Schedule T of the NAIC Annual Statement.

Secs. 23 and 24A must file Form 63-23P. Life insurance companies

Reproduction of returns must be approved by DOR prior to filing and

that are taxable under M.G.L., Ch. 63, Sec. 20, 21 or 23 and marine

meet the criteria provided in Technical Information Release 95-8.

business companies taxable under M.G.L. Ch. 63, Sec. 29A are not

required to file this form.

Failure to meet any of the requirements detailed in this section may

result in a penalty for filing an insufficient return. Such a penalty may

A foreign company is any company organized or formed in any state

be assessed at double the amount of the tax due.

or country other than Massachusetts.

Please visit our website, , for additional copies of

All domestic or foreign organizations that offer preferred provider ar-

this return.

rangements under Ch. 176I are required to file this form.

When Must Form 63-23P Be Filed?

What if the Taxpayer Is a Fiscal or Short Year Filer?

File the 2012 return for calendar year 2012 and fiscal years that began

Form 63-23P, together with payment in full of any tax due, must be

in 2012 and ended in 2013. For a fiscal year return, fill in the tax year

filed on or before the 15th day of the third month after the close of the

space at the top of page 1. Short year filers should file using the tax

company’s taxable year.

form for the calendar year within which the short year falls. If the short

May an Insurance Company Obtain an Extension

year spans more than one calendar year, the filer should file use the

of Time to File?

tax form for the calendar year in which the short year began. If the

Yes. Form 63-23P filers may request a six-month extension of time to

current form is not available at the time the short year filer must file,

file by submitting Massachusetts Form 355-7004 Misc. on or before

the filer should follow the rules explained in TIR 11-12.

the original due date. Any tax due at the time of filing Form 355-7004

When Are Estimated Tax Payments Required?

Misc. must be paid in full.

Any insurance company which reasonably estimates its excise to be

Note: An extension of time to file is not valid if the company fails to

in excess of $1,000 for the taxable year is required to make estimated

pay at least 50% of the total tax liability through estimated payments

tax payments to the Commonwealth. Estimated payments must be

or using Form 355-7004 Misc.

made in quarterly installments of 40%, 25%, 25% and 10% of the es-

What Are the Penalties for Late Returns?

timated annual tax liability.

Insurance excise returns that are not filed on or before the due date

Note: New corporations in their first full taxable year with less than 10

are subject to interest and penalty charges. The penalty for failure to

employees have different estimated payment percentages — 30%,

pay the total amount due with this form is 1% of the balance due per

25%, 25% and 20% respectively.

month (or fraction thereof), up to a maximum of 25%. A late payment

Insurance companies that underpay, or fail to pay, their estimated

penalty does not apply to amended returns when the amount shown

taxes may incur an additional penalty on the amount of the underpay-

on the original return was paid.

ment for the period of the underpayment. Form M-2220, Underpay-

The penalty for failure to file a return by the due date is 1% of the bal-

ment of Massachusetts Estimated Tax by Corporations, is used to

ance due per month (or fraction thereof), up to a maximum of 25%.

compute the additional charge.

Any tax not paid on or before the due date — without regard to the

Any corporation having $1 million or more of federal taxable income

extension — is subject to interest.

in any of its three preceding taxable years (as defined in Section 6655

(g) of the IRC) may only use its prior year’s tax liability to calculate its

What Is a Valid Return?

first quarterly estimated tax payment. Any reduction in the first install-

A valid return is one upon which all required amounts have been en-

ment payment that results from using this method must be added to

tered for all of the appropriate items on the form. Applicable forms and

the second installment payment.

documents may be enclosed to explain these amounts. Referencing

enclosed items instead of properly entering all amounts onto the return

A company that claims the exception to the underpayment penalty of

is not sufficient. The return must be signed by either the treasurer or

equaling the prior year’s tax liability must provide federal tax re-

assistant treasurer of the company.

turns (front page only) for the three preceding taxable years to verify

that federal taxable income is less than $1 million.

To be valid, Form 63-23P must also include:

Note: Any insurance company required to file more than one type of

• a copy of Schedule T, Exhibit of Premiums Written from the NAIC

excise return must also file separate estimated payments since each

Annual Statement; and

type of tax is governed by a different section of the Massachusetts

• a copy of the Underwriting and Investment Exhibit, Form 2, Part I —

General Laws.

Interest, Dividends and Real Estate Income, from the NAIC Annual

For more information on corporate estimated taxes, refer to M.G.L.,

Statement; and

Chapter 63B.

Form 63-23p Instructions

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