Looking for a Tennessee Department Of Revenue Forms And Templates? Download it for free!

TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE

INSTRUCTIONS FOR FILING

“QUARTERLY STATEMENT OF PREMIUMS AND FEES FOR TAXATION”

COMPANIES OTHER THAN LIFE

1. WHO MUST FILE – DUE DATE – CORRECT PROCEDURE FOR FILING – Any Tennessee insurance company or foreign company

licensed in Tennessee must file a STATEMENT OF PREMIUMS AND FEES FOR TAXATION based on the gross premiums written for

the previous period. Payment due dates are June 1, August 20 and December 1. The fact that a company may be inactive or become

inactive does not relieve it of the necessity to file the return. Tenn. Code Ann. § 564216 defines what shall be considered as a timely

filing of the premium tax return. It states in pertinent part, “(c) Notwithstanding any other provisions of the statutes of this state, no

grace period for the filing of returns and payments shall be allowed. A premium tax return and payment made to the department shall

not be considered as paid on or before the due date unless: (1) the premium tax return and payment is received in the office of the

department on or before the due date; (2) the premium tax return and payment bears a post office cancellation mark stamped by the

United States post office on or before the due date, or is mailed by certified or registered mail, or has a certificate of mailing on or

before the due date. A premium tax return and payment received by the department bearing a metered mail stamp and no post office

cancellation mark stamped by the United States post office, shall be deemed filed and received on the date such premium tax return

arrives at the department; or (3) in the event a premium tax return and payment is mailed but not received by the Department of

Commerce and Insurance, or received and the cancellation mark is illegible or omitted, such return and payment shall be deemed filed

and received on the date they were mailed if the sender establishes that the premium tax return and payment were deposited in the

United States mail. In order to establish proof of mailing under these circumstances, a record authenticated by the United States post

office that the original mailing was sent registered mail, certified mail, or by certificate of mailing, shall be the only proof accepted by

the Department of Commerce and Insurance.”

2. CORRECT TAX RETURN – In order to avoid the penalty and interest prescribed by Tenn. Code Ann. § 564216, a tax return must be

filled out correctly. All deficiencies shall be subject to the penalty and interest as provided in Tenn. Code Ann. § 564216, which will

apply to the tax unpaid from the date the amount was due.

3. EXTENTION OF TIME – The Commissioner may in the exercising of the Commissioner’s discretion, for good cause shown,

upon application made in advance of delinquency date, grant an extension of time, but not to exceed sixty (60) days, to the company

to file the premium tax return and pay the tax imposed, without penalty attached; however, the tax shall bear interest at the rate of ten

percent (10%) per annum from the due date until paid. If any company who has received an extension of time fails to file the required

form and pay the appropriate taxes and fees before the expiration of the extension granted, the penalty and interest will attach as

though no extension has been granted, and the company is subject to debarment in this state until the taxes and penalties are fully

paid.

4. EXPIRATION OF LICENSE – CONTINUATION TO PAY TAX – All foreign insurance companies, which shall take out or renew a

license to transact business in this state, shall upon expiration of their license for any cause, or upon their ceasing to transact new

business in this state, continue to pay the same tax upon their business remaining in force in the same manner and time as other

licensed insurance companies of the same class.

5. GROSS PREMIUMS – For premium tax purposes, the words “gross premiums” or “taxable direct premiums” are defined to mean as

follows: “Maximum gross premiums as provided in the policy contracts, new and renewal, including policy or membership fees,

whether paid in part or in whole by cash, automatic premium loans, dividends applied in any manner whatsoever, and without

deduction or exclusion of dividends in any manner; but excluding premiums returned on cancelled policies, or on account of reduction

in rates, or reductions in the amount insured or experience rating refunds on life insurance policies and disability insurance policies.”

6. TAX PAYMENTS – Tenn. Code Ann. § 564205(a) states, “Installments of the annual premium taxes due and payable for each

quarter as described herein shall be based on the estimated amount of gross premiums received during that prior calendar quarter. A

final payment of tax due for the preceding calendar year shall be made at the time each such insurance company files its March 1

return. Such final payment shall be measured by the gross premium, as defined in Tenn. Code Ann. § 564204, received by the

respective companies during the calendar year immediately preceding. Any insurance company which fails to report and or which

estimates any installment of tax to be less than 80 percent of the amount finally shown to be due in any quarter shall be subject to

interest and penalty as provided in the Tenn. Code Ann. § 564216 for any underpayment of taxes due and payable for the quarter.

Any insurance company paying, for each installment required in this section, 25 percent of the amount of the annual premium taxes

reported on its annual return for the preceding year shall not be subject to any penalty or interest for such underpayment.”

Instructions for IN0578 (Rev. 10/02)

Form In-0578 - Statement Of Premiums And Fees For Taxation - Companies Other Than Life - Tennessee Department Of Commerce And Insurance - 2002 Page 2

Related Articles

Related forms

Related Categories