Instructions For Form Rct-123 - Gross Premiums Tax Report For Surplus Lines Agents

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General Information for RCT-123
RCT-123-I (1-15)
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NEW FOR 2014
The penalty imposed for failure to file timely reports is now a minimum of $500, regardless of the determined tax liability, plus an addition-
al 1 percent of any determined tax liability over $25,000
REMINDER
• All payments of $1,000 or more must be made electronically.
• Use only whole dollars when preparing tax reports.
• Taxpayers may request a 60-day extension to file this report by filing REV-426.
NOTE: The automatic PA extension provided by Act 52 of 2013 to those with valid federal extensions DOES NOT apply to this tax.
• Revenue ID: A corporation’s Revenue ID is a unique 10-digit number assigned by the department to a taxpayer, separate from any
federally issued identification number(s) or Pennsylvania license number(s).
• Use ONLY the most current, non-year-specific tax form and instructions for filing ALL tax years. If an amended report must be
filed, taxpayers must use the most current, non-year-specific tax form, completing all sections of the form. REV-1175,
Schedule AR (explanation for amending), must be included when filing an amended report.
• RCT-123 is available as a fill-in form on the department’s website at
• One extension coupon (REV-426) will be used for all specialty taxes. The coupon and the tax report will no longer be mailed. These
forms are available as fill-in documents on the department’s website The REV-426 extension coupon can
be filed electronically through e-TIDES at However, electronic filing of the tax report is not available. The
report should be completed using the computer-based fill-in form, printed and submitted by mail to the department. The form can
be saved electronically for your records.
• One RCT-123 must be filed for each agency and report for all branch offices and/or all individual agents filing under the same FEIN.
• The tax liability on RCT-123 cannot be less than zero; instead the taxpayer must file a petition for refund
Annual Report Checklist: Make sure you include the following to file your annual report properly and completely:
• Negative amounts must be written using a minus sign preceding the number. Do not use parentheses.
• Complete RCT-123, Gross Premiums Tax Report for Surplus Lines Agents
• Attach copies of the monthly 1620 reports as filed with the Pennsylvania Surplus Lines Association on behalf of the Pennsylvania
Insurance Department.
• Corporate officer’s signature on Page 1 and preparer’s signature and PTIN on Page 2, if applicable
• A signed copy of all three pages of the RCT-123 tax report and the monthly 1620 reports must be filed electronically with the
Pennsylvania Surplus Lines Association in the Electronic Filing System (EFS).
Imposition, Base and Rate
The gross premiums tax is imposed under the Act of May 17, 1921, P.L. 682, No. 284 at the rate of 3 percent on gross premiums of insur-
ance procured with eligible surplus lines insurers and other non-admitted insurers through duly licensed surplus lines producers. The tax is
in addition to the premium charged by the insurer. The tax is levied on the insured that procured the insurance with eligible surplus lines
insurers or other non-admitted insurers and is collected and remitted by the surplus lines producer. The tax on any unearned portion of the
premium must be returned to the insured by the agency or agent. Political subdivisions are exempt from this tax.
Location of Risk
If the policy involves risk located in multiple states including Pennsylvania, then the taxable premiums shall be levied as follows:
If Pennsylvania is the home state of the insured, the gross premiums shall be taxable to Pennsylvania. For more information, see 40 P.S. §
991.1602, 40 P.S. § 991.1621 and 40 P.S. § 991.1622.
Revenue ID, Federal Employer Identification Number (FEIN), Parent Corporation FEIN, Name and Address
The Revenue ID number, FEIN, name and complete mailing address must be provided. If the taxpayer is a subsidiary of a corporation, the
parent corporation’s FEIN must be provided. Also provide the telephone number and email address of the taxpayer.
Tax Year
Enter month, day and year (MM DD YYYY) for the tax year beginning and year (YY) for the tax year end.
Report Due Date
This report is due on Jan. 31 for the preceding year ended Dec. 31. If Jan. 31 falls on a Saturday, Sunday or holiday, the report is due the
next business day. The penalty imposed for failure to file timely reports is now a minimum of $500, regardless of the determined tax liabil-
ity, plus an additional 1 percent of any determined tax liability over $25,000.
Address Change
Enter “Y” in the block on Page 1 if the address of the corporation has changed from prior tax periods. The current mailing address should
be reflected on the report.
Correspondence to Preparer
Enter “Y” in the block on Page 1 if all correspondence (notices and requests for additional information) is to be sent to the preparer’s address.
If “Y” is entered, the address recorded on Page 2 will be used.

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