General Information For Rct-122 printable pdf download

General Information for RCT-122

RCT-122-I (10-12)

Page 1 of 5

NEW FOR 2012

• RCT-122 has been redesigned and is no longer year-specific.

• Line-by-line instructions for RCT-122 are now available.

• RCT-122 is available as a fill-in form on the department’s website at

• A signed copy of the RCT-122 tax report must be sent to the Pennsylvania Surplus Lines Association on behalf of the Pennsylvania

Insurance Department, to 180 Sheree Blvd, Suite 3100, Exton, PA 19341.

• Revenue ID: For the 2012 tax year, a corporation’s Revenue ID is its seven-digit PA Tax Account ID OR a new, unique, 10-digit

number assigned by the department to a taxpayer, separate from any federally issued identification number(s) or Pennsylvania

license number(s).

As the department transitions to an integrated tax system, a 10-digit Revenue ID number will be assigned and communicated to

each taxpayer. A corporation’s PA Tax Account ID will continue to be accepted by the department on tax forms and schedules, but

upon assignment of a 10-digit Revenue ID to a taxpayer, the department will begin using the 10-digit Revenue ID on outbound cor-

respondence in lieu of referencing the Tax Account ID.

REMINDER

• REV-1175, Schedule AR, (explanation for amending) must be included when filing an amended report.

• One extension coupon (REV-426) will be used for all specialty taxes. The coupon and the tax report (RCT-122) will no longer be

mailed. These forms are available as fill-in documents on the department’s website at The REV-426

extension coupon can be filed electronically through e-TIDES at ww.etides.state.pa.us. 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 depart-

ment. The form can be saved electronically for your records.

• The tax liability reported on RCT-122 cannot be a negative number; 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:

• Complete RCT-122, Gross Premiums Tax Report for Premiums paid to Unauthorized Foreign Insurance Companies, Associations,

Exchanges, etc.

• Separate schedule identifying any premiums returned on cancelled policies

• Corporate officer’s/insured’s signature on Page 1 and preparer’s signature and PTIN on Page 2, if applicable

• A signed copy of the RCT-122 tax report sent to the Pennsylvania Surplus Lines Association on behalf of the Pennsylvania Insurance

Department, to 180 Sheree Blvd, Suite 3100, Exton, PA 19341

All tax calculations must be shown in whole dollar amounts. An amount less than 50 cents

will be eliminated, and an amount of 50 cents or more will be rounded to the next dollar.

Imposition, Base and Rate

Gross premiums tax for premiums paid to Unauthorized Foreign or Alien Insurance Companies is imposed on the insured rather than on the

insurance carrier. Anyone who enters into a contract of insurance or reinsurance with a foreign or alien insurer not licensed to do business

in Pennsylvania is subject to the tax on insurance premiums. The tax is imposed at 2 percent of life insurance and annuity gross premiums

and 3 percent on premiums for all other types of insurance. The tax must be remitted to the Pennsylvania Department of Revenue when

the insured enters into the insurance contract and makes a periodic payment. Insurance companies authorized to do business in

Pennsylvania are subject to a tax on gross premiums of reinsurance when the reinsurance is with companies not authorized to do business

in Pennsylvania. For more information, see Act of July 6, 1917, P.L. 723, as amended by the Act of January 24, 1966.

Location of Risk

If the policy involves risk located in multiple states which includes Pennsylvania, the taxable premium shall be levied as follows:

Policies placed/renewed before July 1, 2011: If the location of risk is partially in Pennsylvania, that portion of the gross premiums

shall be taxable. Proof of the allocation or apportionment of the Pennsylvania risk must be provided.

Policies placed/renewed after June 30, 2011: If Pennsylvania is the “home state” of the insured, the gross premium shall be tax-

able 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 and year (MM/YYYY) for tax year end.

Report Due Date

The report is due within 30 days after the last day of the month in which the insurance was procured. If multiple purchases of such insur-

ance are expected to occur more than once during a particular month, only one tax report should be prepared summarizing each day’s trans-

action and submitted upon closing of the month. The beginning date of all policies must be the same as the file month indicated. A penal-

ty for late filing will be imposed as follows and assessed at the time of filing: 10 percent of the first $1,000 of tax liability, 5 percent of the

next $4,000 of tax liability and 1 percent on any tax liability in excess of $5,000.

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.

General Information For Rct-122

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