Instructions for IRS Form 1120-l - U.S. Life Insurance Company Income Tax Return 2018

January 1, 2018 "Instructions For Irs Form 1120-l - U.s. Life Insurance Company Income Tax Return" contain the updated filing procedures for the IRS-issued Form 1120-L. Download your copy of the instructions by clicking the link below.

IRS Form 1120-L is a tax form issued by the United States Internal Revenue Service.

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2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1120-L
U.S. Life Insurance Company Income Tax Return
Contents
Page
"Yes," complete and attach Form
Section references are to the Internal
Revenue Code unless otherwise noted.
8991.
Schedule L . . . . . . . . . . . . . .
22
Contents
Page
Schedule M—Other
Schedule M, line 15. New question
Information . . . . . . . . . . . .
23
Future Developments . . . . . . . . . . . .
1
15 asks: During the tax year, did the
Index . . . . . . . . . . . . . . . . . . . . .
26
What's New . . . . . . . . . . . . . . . . . .
1
corporation pay or accrue any interest
Photographs of Missing Children . . . .
2
or royalty for which the deduction is
Future Developments
The Taxpayer Advocate Service . . . . .
2
not allowed under section 267A? If
How To Get Forms and
“Yes,” enter the total amount of the
For the latest information about
Publications . . . . . . . . . . . . . . .
2
disallowed deductions.
developments related to Form 1120-L
General Instructions . . . . . . . . . . . . .
2
and its instructions, such as
Deduction for foreign-source por-
Purpose of Form . . . . . . . . . . . .
2
legislation enacted after they were
tion of dividends received by do-
Who Must File . . . . . . . . . . . . .
2
published, go to IRS.gov/Form1120L.
mestic corporations from specified
Definitions . . . . . . . . . . . . . . . .
3
10%-owned foreign corporations.
Electronic Filing . . . . . . . . . . . .
3
Additional guidance may be issued
P.L. 115-97 enacted new section
When To File . . . . . . . . . . . . . .
3
subsequent to the publication of these
245A. Section 245A permits certain
Where To File . . . . . . . . . . . . . .
4
instructions. Please review any
domestic corporations that are U.S.
Who Must Sign . . . . . . . . . . . . .
4
additional information on the website
shareholders of specified 10%-owned
Paid Preparer Authorization . . . . .
4
prior to the completion of the form.
foreign corporations a 100%
Statements . . . . . . . . . . . . . . .
4
deduction for the foreign source
Assembling the Return . . . . . . . .
4
What's New
portion of any dividend received from
Tax Payments . . . . . . . . . . . . .
5
that specified 10%-owned foreign
Interest and Penalties . . . . . . . . .
5
The Tax Cuts and Jobs Act , P.L.
Accounting Methods . . . . . . . . .
6
corporation. See section 245A.
115-97 repealed and amended cer-
Accounting Period . . . . . . . . . . .
6
tain code sections. The Tax Cuts
Domestic production activities de-
Rounding Off to Whole
and Jobs Act, P.L. 115-97, repealed
duction (DPAD). DPAD has been
Dollars . . . . . . . . . . . . . . . .
6
sections 806 (the small life insurance
repealed for tax years beginning after
Recordkeeping . . . . . . . . . . . . .
6
company deduction); 810 (the
December 31, 2017, with limited
Other Forms and
operations loss deduction); 815
exceptions. See Line 18. Other
Statements That May Be
Required . . . . . . . . . . . . . . .
6
(distributions to shareholders from
deductions.
Specific Instructions . . . . . . . . . . . . .
7
pre-1984 policyholders surplus
Repeal of the alternative minimum
Period Covered
. . . . . . . . . . . .
7
account); and amended sections 807,
tax for corporations. P.L. 115-97
Name and Address . . . . . . . . . .
7
812, and 848. See the instructions for
repealed the alternative minimum tax
Item A. Identifying
specific lines below.
(AMT) for corporations for tax years
Information . . . . . . . . . . . . .
8
Treatment of deferred foreign in-
beginning after December 31, 2017.
Item B. Employer
come upon transition to participa-
Identification Number
In addition, amendments to section 53
(EIN) . . . . . . . . . . . . . . . . .
8
tion exemption system of taxation.
provide that corporations may treat a
Item D. Section 953
Direct and indirect U.S. owners of
portion of their prior year minimum tax
Elections . . . . . . . . . . . . . . .
9
specified foreign corporations may
credit carryover as refundable. The
Item E. Final Return, Name
have an inclusion under section 965
amount of the refundable credit is
Change, Address
based on the accumulated post-1986
equal to 50% (100% in tax years
Change, or Amended
deferred foreign income of the
Return . . . . . . . . . . . . . . . .
9
beginning in 2021) of the excess of
specified foreign corporations. See
Life Insurance Company
the minimum tax credit carryover to
Taxable Income . . . . . . . . . .
9
section 965, as amended by P.L.
the tax year over the amount of the
Schedule A—Dividends,
115-97.
otherwise allowable credit against
Inclusions,
regular tax liability. See Form 8827 for
Dividends-Received
Schedule K, line 3. See Form 8991
details on how to compute the credit.
Deduction, and Other
and its instructions to determine
Special Deductions . . . . . . .
16
whether the corporation is subject to
Net operating loss (NOL) deduc-
Schedule B—Investment
the base erosion minimum tax
tion and operations loss deduction
Income . . . . . . . . . . . . . . .
19
pursuant to section 59A.
(OLD). The net operating loss (NOL)
Schedule F—Increase
deduction is newly allowed and the
(Decrease) in Reserves
Schedule M, line 14. New question
(Section 807) . . . . . . . . . . .
19
operations loss deduction (OLD) is no
14 asks: Does the corporation have
Schedule G—Policy
longer allowed for losses arising in tax
gross receipts of at least $500 million
Acquisition Expenses . . . . . .
20
years beginning after 2017. See
in any of the 3 preceding tax years?
Schedule K—Tax
section 805, as amended by P.L.
(See section 59A(e)(2) and (3).) If
Computation . . . . . . . . . . .
21
Feb 14, 2019
Cat. No. 11485H
2018
Department of the Treasury
Internal Revenue Service
Instructions for Form 1120-L
U.S. Life Insurance Company Income Tax Return
Contents
Page
"Yes," complete and attach Form
Section references are to the Internal
Revenue Code unless otherwise noted.
8991.
Schedule L . . . . . . . . . . . . . .
22
Contents
Page
Schedule M—Other
Schedule M, line 15. New question
Information . . . . . . . . . . . .
23
Future Developments . . . . . . . . . . . .
1
15 asks: During the tax year, did the
Index . . . . . . . . . . . . . . . . . . . . .
26
What's New . . . . . . . . . . . . . . . . . .
1
corporation pay or accrue any interest
Photographs of Missing Children . . . .
2
or royalty for which the deduction is
Future Developments
The Taxpayer Advocate Service . . . . .
2
not allowed under section 267A? If
How To Get Forms and
“Yes,” enter the total amount of the
For the latest information about
Publications . . . . . . . . . . . . . . .
2
disallowed deductions.
developments related to Form 1120-L
General Instructions . . . . . . . . . . . . .
2
and its instructions, such as
Deduction for foreign-source por-
Purpose of Form . . . . . . . . . . . .
2
legislation enacted after they were
tion of dividends received by do-
Who Must File . . . . . . . . . . . . .
2
published, go to IRS.gov/Form1120L.
mestic corporations from specified
Definitions . . . . . . . . . . . . . . . .
3
10%-owned foreign corporations.
Electronic Filing . . . . . . . . . . . .
3
Additional guidance may be issued
P.L. 115-97 enacted new section
When To File . . . . . . . . . . . . . .
3
subsequent to the publication of these
245A. Section 245A permits certain
Where To File . . . . . . . . . . . . . .
4
instructions. Please review any
domestic corporations that are U.S.
Who Must Sign . . . . . . . . . . . . .
4
additional information on the website
shareholders of specified 10%-owned
Paid Preparer Authorization . . . . .
4
prior to the completion of the form.
foreign corporations a 100%
Statements . . . . . . . . . . . . . . .
4
deduction for the foreign source
Assembling the Return . . . . . . . .
4
What's New
portion of any dividend received from
Tax Payments . . . . . . . . . . . . .
5
that specified 10%-owned foreign
Interest and Penalties . . . . . . . . .
5
The Tax Cuts and Jobs Act , P.L.
Accounting Methods . . . . . . . . .
6
corporation. See section 245A.
115-97 repealed and amended cer-
Accounting Period . . . . . . . . . . .
6
tain code sections. The Tax Cuts
Domestic production activities de-
Rounding Off to Whole
and Jobs Act, P.L. 115-97, repealed
duction (DPAD). DPAD has been
Dollars . . . . . . . . . . . . . . . .
6
sections 806 (the small life insurance
repealed for tax years beginning after
Recordkeeping . . . . . . . . . . . . .
6
company deduction); 810 (the
December 31, 2017, with limited
Other Forms and
operations loss deduction); 815
exceptions. See Line 18. Other
Statements That May Be
Required . . . . . . . . . . . . . . .
6
(distributions to shareholders from
deductions.
Specific Instructions . . . . . . . . . . . . .
7
pre-1984 policyholders surplus
Repeal of the alternative minimum
Period Covered
. . . . . . . . . . . .
7
account); and amended sections 807,
tax for corporations. P.L. 115-97
Name and Address . . . . . . . . . .
7
812, and 848. See the instructions for
repealed the alternative minimum tax
Item A. Identifying
specific lines below.
(AMT) for corporations for tax years
Information . . . . . . . . . . . . .
8
Treatment of deferred foreign in-
beginning after December 31, 2017.
Item B. Employer
come upon transition to participa-
Identification Number
In addition, amendments to section 53
(EIN) . . . . . . . . . . . . . . . . .
8
tion exemption system of taxation.
provide that corporations may treat a
Item D. Section 953
Direct and indirect U.S. owners of
portion of their prior year minimum tax
Elections . . . . . . . . . . . . . . .
9
specified foreign corporations may
credit carryover as refundable. The
Item E. Final Return, Name
have an inclusion under section 965
amount of the refundable credit is
Change, Address
based on the accumulated post-1986
equal to 50% (100% in tax years
Change, or Amended
deferred foreign income of the
Return . . . . . . . . . . . . . . . .
9
beginning in 2021) of the excess of
specified foreign corporations. See
Life Insurance Company
the minimum tax credit carryover to
Taxable Income . . . . . . . . . .
9
section 965, as amended by P.L.
the tax year over the amount of the
Schedule A—Dividends,
115-97.
otherwise allowable credit against
Inclusions,
regular tax liability. See Form 8827 for
Dividends-Received
Schedule K, line 3. See Form 8991
details on how to compute the credit.
Deduction, and Other
and its instructions to determine
Special Deductions . . . . . . .
16
whether the corporation is subject to
Net operating loss (NOL) deduc-
Schedule B—Investment
the base erosion minimum tax
tion and operations loss deduction
Income . . . . . . . . . . . . . . .
19
pursuant to section 59A.
(OLD). The net operating loss (NOL)
Schedule F—Increase
deduction is newly allowed and the
(Decrease) in Reserves
Schedule M, line 14. New question
(Section 807) . . . . . . . . . . .
19
operations loss deduction (OLD) is no
14 asks: Does the corporation have
Schedule G—Policy
longer allowed for losses arising in tax
gross receipts of at least $500 million
Acquisition Expenses . . . . . .
20
years beginning after 2017. See
in any of the 3 preceding tax years?
Schedule K—Tax
section 805, as amended by P.L.
(See section 59A(e)(2) and (3).) If
Computation . . . . . . . . . . .
21
Feb 14, 2019
Cat. No. 11485H
115-97. Operations loss carryovers
at the photographs and calling
Search publications online by topic
from tax years beginning before 2018
1-800-THE-LOST (1-800-843-5678) if
or keyword;
are allowed as deductions in tax years
you recognize a child.
View Internal Revenue Bulletins
beginning after 2017, in accordance
(IRBs) published in recent years; and
The Taxpayer Advocate
with section 810, before its repeal by
Sign up to receive local and
Service
P.L. 115-97.
national tax news by email.
The Taxpayer Advocate Service
Form 8975. Certain U.S. persons
Tax forms and publications. The
(TAS) is an independent
that are the ultimate parent entity of a
corporation can download or print all
organization within the IRS that helps
U.S. multinational enterprise group
of the forms and publications it may
taxpayers and protects taxpayer
with annual revenue for the preceding
need on IRS.gov/FormsPubs.
rights. TAS's job is to ensure that
reporting period of $850 million or
Otherwise, the corporation can go to
every taxpayer is treated fairly and
more are required to file Form 8975.
IRS.gov/OrderForms
to place an
knows and understands their rights
Form 8975 and Schedule A (Form
order and have forms mailed to it. The
under the
Taxpayer Bill of
Rights.
8975) must be filed with the income
corporation should receive its order
tax return of the ultimate parent entity
within 10 business days.
As a taxpayer, the corporation has
of a U.S. multinational enterprise
rights that the IRS must abide by in its
General Instructions
group for the tax year in or within
dealings with the corporation. can
which the reporting period covered by
help the corporation understand these
Form 8975 ends. For more
Purpose of Form
rights.
information, see Form 8975,
Use Form 1120-L, U.S. Life Insurance
Schedule A (Form 8975) and the
TAS can help the corporation if:
Company Income Tax Return, to
Instructions for Form 8975 and
A problem is causing financial
report the income, gains, losses,
Schedule A (Form 8975).
difficulty for the business.
deductions, credits, and to figure the
The business is facing an
Global intangible low-taxed in-
income tax liability of life insurance
immediate threat of adverse action.
come included in gross income of
companies.
The corporation has tried
United States shareholders (GIL-
repeatedly to contact the IRS but no
Who Must File
TI). Generally, each United States
one has responded, or the IRS hasn't
shareholder of any controlled foreign
Every domestic life insurance
responded by the date promised.
corporation must include in gross
company and every foreign
income global intangible low-taxed
corporation that would qualify as a life
The TAS toolkit at
income for tax years of those foreign
insurance company if it were a U.S.
TaxpayerAdvocate.IRS.gov
can help
corporations beginning after 2017 that
corporation must file Form 1120-L.
the corporation understand these
end with or within the shareholder's
This includes organizations described
rights.
tax year. See section 951A, as added
in section 501(m)(1) that provide
TAS has offices in every state, the
by P.L. 115-97, and Form 8992.
commercial-type life insurance.
District of Columbia, and Puerto Rico.
Deduction for foreign-derived in-
Mutual Savings Banks
Local advocates' numbers are in their
tangible income and global intan-
Conducting Life Insurance
local directories and at
gible low-taxed income. A
TaxpayerAdvocate.IRS.gov. The
Business
domestic corporation may be allowed
corporation can also call TAS at
Mutual savings banks conducting life
a deduction related to the sum of its
1-877-777-4778.
insurance business and meeting the
foreign-derived intangible income
requirements of section 594 are
(FDII) and global intangible low-taxed
TAS also works to resolve
subject to an alternative tax consisting
income (GILTI) for tax years
large-scale or systemic problems that
of:
beginning after 2017. See section
affect many taxpayers. If the
A partial tax computed on Form
250, as added by P.L. 115-97, and
corporation knows of one of these
1120, U.S. Corporation Income Tax
Form 8993.
broad issues, please report it to TAS
Return, on the taxable income of the
through the Systemic Advocacy
Limitation on business interest.
bank, excluding the life insurance
Management System at
IRS.gov/
There are new business interest rules
department; and
SAMS.
for tax years beginning after 2017.
A partial tax on the taxable income
See section 163(j) and Form 8990.
For more information, go to
computed on Form 1120-L of the life
IRS.gov/Advocate.
insurance department.
Photographs of Missing
Children
How To Get Forms and
Enter the combined tax on line 2 of
Schedule J, Form 1120. File Form
Publications
The IRS is a proud partner with the
1120 and attach Form 1120-L as a
National Center for Missing &
statement (and identify it as such) or
Internet. You can access the IRS
Exploited Children®
(NCMEC).
attach a statement showing the
website 24 hours a day, 7 days a
Photographs of missing children
computation of the taxable income of
week, at IRS.gov to:
selected by the Center may appear in
the life insurance department
Download forms, instructions, and
instructions on pages that would
(including all relevant information that
publications;
otherwise be blank. You can help
would be reported on Form 1120-L).
Order IRS products online;
bring these children home by looking
Research your tax questions online;
-2-
Instructions for Form 1120-L (2018)
Foreign Life Insurance
under section 831 and should file
and Forms 940, 941, and 944
Form 1120-PC.
(employment tax returns). If there is a
Companies
balance due, the corporation can
A foreign life insurance company that
Definitions
authorize an electronic funds
sells a U.S. real property interest must
withdrawal while e-filing. Form 1099
An “insurance company” means any
file Form 1120-L and Schedule D
and other information returns also can
corporation if more than half of its
(Form 1120) to report the sale. Gain
be electronically filed. The option to
business during the tax year is from
or loss from the sale of a U.S. real
e-file does not, however, apply to
the issuance of insurance or annuity
property interest is considered
certain returns.
contracts or the reinsuring of risks
effectively connected with the conduct
underwritten by insurance companies.
For more information, visit
IRS.gov/
of a U.S. business, even though the
Filing. Click on the links for
foreign life insurance company does
A “life insurance company” is an
“Businesses & Self-Employed” and
not carry on any insurance business in
insurance company in the business of
“Corporations.”
the United States and is not otherwise
issuing life insurance and annuity
required to file a U.S. income tax
contracts either separately or
When To File
return. See sections 842 and 897, and
combined with health and accident
the instructions for Schedule K, line 8,
insurance, or noncancelable contracts
Generally, a corporation must file its
later.
of health and accident insurance that
income tax return by the 15th day of
meet the reserves test in section
the 4th month after the end of its tax
Foreign-owned domestic disregar-
816(a). Guaranteed renewable life,
year. A new corporation filing a
ded entities. For tax years beginning
health, and accident insurance that
short-period return generally must file
after 2016 and ending after December
the corporation cannot cancel but
by the 15th day of the 4th month after
12, 2017, if a foreign person, including
reserves the right to adjust premium
the short period ends. A corporation
a foreign corporation, wholly owns a
rates by classes, according to
that has dissolved generally must file
domestic disregarded entity (DE), the
experience under the kind of policy
by the 15th day of the 4th month after
domestic DE is treated as a domestic
involved, are treated as
the date it dissolved.
corporation separate from its owner
noncancelable.
(the foreign corporation) for purposes
However, a corporation with a fiscal
The “reserves test” requires that life
of the reporting requirements under
tax year ending June 30 must file by
insurance reserves, as defined in
section 6038A that apply to 25%
the 15th day of the 3rd month after the
section 816(b), plus unearned
foreign-owned domestic corporations.
end of its tax year. A corporation with
premiums and unpaid losses (whether
These rules apply to a domestic DE
a short tax year ending anytime in
or not ascertained) on noncancelable
owned by a foreign insurance
June will be treated as if the short year
life, health, or accident policies not
company that makes an election
ended on June 30, and must file by
included in life insurance reserves
under section 953(c)(3)(C) but do not
the 15th day of the 3rd month after the
must make up more than 50% (0.50)
apply to a domestic DE owned by a
end of its tax year.
of total reserves as defined in section
foreign insurance company that
If the due date falls on a Saturday,
816(c). When determining whether
makes an election under section
Sunday, or legal holiday, the
the reserves test has been met:
953(d) (for information on these
corporation can file on the next
elections, see the instructions for Item
1. Life insurance reserves and
business day.
D). If a foreign insurance company
total reserves must each be reduced
electing under section 953(c)(3)(C)
Private Delivery Services
by an amount equal to the mean of the
wholly owns a domestic DE, the DE
aggregates, at the beginning and end
Corporations can use certain private
may be required to file Form 5472. For
of the tax year, of the policy loans
delivery services (PDS) designated by
additional information and
outstanding with respect to contracts
the IRS to meet the “timely mailing as
coordination with Form 5472 filing by
for which life insurance reserves are
timely filing” rule for tax returns. Go to
the domestic DE, see the Instructions
maintained;
IRS.gov/PDS
for the current list of
for Form 5472.
designated services.
2. Amounts set aside and held at
interest to satisfy obligations under
The PDS can tell you how to get
Note. A domestic DE generally is a
contracts that do not contain
transparent entity. Any insurance
written proof of the mailing date.
permanent guarantees with respect to
company that must file Form 1120-L
For the IRS mailing address to use
life, accident, or health contingencies
will include on Form 1120-L any tax
if you're using PDS, go to
IRS.gov/
must not be included in either life
items of a wholly owned domestic DE
PDSstreetAddress.
insurance reserves (section 816(c)(1))
that are subject to reporting.
or other reserves required by law
Private delivery services
Other Insurance Companies
(section 816(c)(3)); and
cannot deliver items to P.O.
!
Insurance companies, other than life
boxes. You must use the U.S.
3. Deficiency reserves must not be
CAUTION
insurance companies, should file
Postal Service to mail any item to an
included in either life insurance
Form 1120-PC, U.S. Property and
IRS P.O. box address.
reserves or total reserves.
Casualty Insurance Company Income
Electronic Filing
Tax Return. A burial or funeral benefit
Extension of Time To File
insurance company that directly
Corporations generally can
File Form 7004, Application for
manufactures funeral supplies or
electronically file (e-file) Form 7004
Automatic Extension of Time To File
performs funeral services is taxable
(automatic extension of time to file)
Certain Business Income Tax,
Instructions for Form 1120-L (2018)
-3-
Information, and Other Returns, to
Where To File
request an extension of time to file.
Generally, file Form 7004 by the
File the corporation's return at the applicable IRS address listed below.
regular due date of the return. See the
Instructions for Form 7004.
If the corporation's principal business, office,
Who Must Sign
or agency is located in:
Use the following addresses:
The return must be signed and dated
Department of the Treasury
by:
The United States
Internal Revenue Service Center
The president, vice-president,
Ogden, UT 84201-0012
treasurer, assistant treasurer, chief
Internal Revenue Service Center
accounting officer; or
A foreign country or U.S. possession
P.O. Box 409101
Any other corporate officer (such as
Ogden, UT 84409
tax officer) authorized to sign.
If a return is filed on behalf of a
questions that may arise during the
attach the annual statement or pro
corporation by a receiver, trustee, or
processing of its return. The
forma annual statement to the
assignee, the fiduciary must sign the
corporation also is authorizing the
electronically filed return. However,
return, instead of the corporate officer.
paid preparer to:
you must provide a copy of the annual
Returns and forms signed by a
Give the IRS any information that is
statement or pro forma annual
receiver or trustee in bankruptcy on
missing from the return;
statement to the IRS if requested and
behalf of a corporation must be
Call the IRS for information about
retain it with your other tax records for
accompanied by a copy of the order
the processing of the return or the
the period required by the regulations.
or instructions of the court authorizing
status of any related refund or
signing of the return or form.
Reconciliation. Corporations that
payment(s); and
do not file Schedule M-3 (Form
Respond to certain IRS notices
If an employee of the corporation
1120-L) with Form 1120-L must attach
about math errors, offsets, and return
completes Form 1120-L, the paid
a statement that reconciles Form
preparation.
preparer space should remain blank.
1120-L with the annual statement
Anyone who prepares Form 1120-L
used as the basis for computing
The corporation is not authorizing
but does not charge the corporation
taxable income reported on Form
the paid preparer to receive any
should not complete that section.
1120-L. Also, see the Note under the
refund check, bind the corporation to
Generally, anyone who is paid to
instructions for Schedule F for
anything (including any additional tax
prepare the return must sign it and fill
additional required reconciliations.
liability), or otherwise represent the
in the “Paid Preparer Use Only” area.
corporation before the IRS.
Assembling the Return
The paid preparer must complete
The authorization will automatically
the required preparer information and:
To ensure that the corporation's tax
end no later than the due date
Sign the return in the space
return is correctly processed, attach
(excluding extensions) for filing the
all schedules and other forms after
provided for the preparer's signature,
corporation's 2019 tax return. If the
page 5 of Form 1120-L in the
and
corporation wants to expand the paid
Give a copy of the return to the
following order.
preparer's authorization or revoke the
taxpayer.
1. Schedule N (Form 1120),
authorization before it ends, see Pub.
Foreign Operations of U.S.
Note. A paid preparer may sign
947, Practice Before the IRS and
Corporations.
original or amended returns by rubber
Power of Attorney.
2. Schedule D (Form 1120),
stamp, mechanical device, or
Statements
Capital Gains and Losses.
computer software program.
3. Schedule O (Form 1120),
Annual statement. In general, every
Paid Preparer
Consent Plan and Apportionment
domestic or foreign life insurance
Authorization
Schedule for a Controlled Group.
company must attach a copy of the
4. Form 8991, Tax on Base
If the corporation wants to allow the
National Association of Insurance
Erosion Payments of Taxpayers With
IRS to discuss its 2018 tax return with
Commissioners (NAIC) annual
Substantial Gross Receipts.
the paid preparer who signed it, check
statement filed with the state of
the “Yes” box in the signature area of
domicile and used as the basis for
5. Form 8302, Electronic Deposit
the return. This authorization applies
computing taxable income. If a
of Tax Refund of $1 Million or More.
only to the individual whose signature
different annual statement was used
6. Form 4136, Credit for Federal
appears in the “Paid Preparer Use
as the basis for computing taxable
Tax Paid on Fuels.
Only” section of the return. It doesn’t
income, attach that annual statement
7. Form 8941, Credit for Small
apply to the firm, if any, shown in that
to Form 1120-L. However, see
Employer Health Insurance
section.
Electronic filing, next.
Premiums.
If the “Yes” box is checked, the
Electronic filing. If a domestic or
corporation is authorizing the IRS to
foreign life insurance company files
call the paid preparer to answer any
Form 1120-L electronically, do not
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Instructions for Form 1120-L (2018)
8. Form 8992, U.S. Shareholder
provided by the Department of the
If the corporation overpaid
Calculation of Global Intangible
Treasury. Services provided by a tax
estimated tax, it may be able to get a
Low-Taxed Income (GILTI).
professional, financial institution,
quick refund by filing Form 4466,
payroll service, or other third party
Corporation Application for Quick
9. Form 8993, Section 250
may have a fee.
Refund of Overpayment of Estimated
Deduction for Foreign-Derived
Tax.
Intangible Income (FDII) and Global
To get more information about
Intangible Low-Taxed Income (GILTI).
See the instructions for line 28c
EFTPS or to enroll in EFTPS, visit
and line 28d, later.
www.eftps.gov, or call
10. Form 851, Affiliations Schedule.
1-800-555-4477 (TTY/TDD
Estimated tax penalty. A
11. Additional schedules in
1-800-733-4829).
corporation that does not make
alphabetical order.
estimated tax payments when due
Depositing on time. To make your
12. Additional forms in numerical
may be subject to an underpayment
EFTPS deposits on time, the
order.
penalty for the period of
corporation must submit the
13. Supporting statements and
underpayment. Generally, a
transaction by 8 p.m. Eastern time the
attachments.
corporation is subject to the penalty if
day before the date the deposit is due.
its tax liability is $500 or more and it
Complete every applicable entry
If the corporation uses a third party to
did not timely pay at least the smaller
space on Form 1120-L. Do not enter
make deposits on its behalf, they may
of:
“See Attached” or “Available Upon
have different cutoff times.
Its tax liability for the current year,
Request” instead of completing the
Same-day wire payment option. If
or
entry spaces. If more space is needed
the corporation fails to submit a
Its prior year's tax.
on the forms or schedules, attach
deposit transaction on EFTPS by 8
separate sheets using the same size
See section 6655 for details and
p.m. Eastern time the day before the
and format as on the printed forms. If
exceptions, including special rules for
date a deposit is due, it can still make
there are supporting statements and
large corporations.
the deposit on time by using the
attachments, arrange them in the
Use Form 2220, Underpayment of
Federal Tax Collection Service
same order as the schedules or forms
Estimated Tax by Corporations, to
(FTCS). Before using the same-day
they support and attach them last.
see if the corporation owes a penalty
wire payment option, the corporation
Show the totals on the printed forms.
and to figure the amount of the
will need to make arrangements with
Enter the corporation's name and EIN
penalty. If Form 2220 is completed,
its financial institution ahead of time
on each supporting statement or
enter the penalty on line 29. See the
regarding availability, deadlines, and
attachment.
instructions for line 29, later.
costs. Financial institutions may
charge a fee for payments made this
Tax Payments
Interest and Penalties
way. To learn more about making a
Generally, the corporation must pay
same-day wire payment, visit
If the corporation receives a
any tax due in full no later than the
IRS.gov/SameDayWire.
notice about penalties after it
!
due date for filing its tax return (not
files its return, send the IRS
including extensions). See the
CAUTION
Estimated Tax Payments
an explanation and we will determine
instructions for line 30. If the due date
if the corporation meets reasonable
Generally, the following rules apply to
falls on a Saturday, Sunday, or legal
cause criteria. Do not attach an
the corporation's payments of
holiday, the payment is due on the
explanation when the corporation's
estimated tax.
next day that isn't a Saturday,
return is filed.
The corporation must make
Sunday, or legal holiday.
installment payments of estimated tax
Electronic Deposit
Interest. Interest is charged on taxes
if it expects its total tax for the year
Requirement
paid late even if an extension of time
(less applicable credits) to be $500 or
to file is granted. Interest also is
more.
Corporations must use electronic
charged on penalties imposed for
The installments are due by the
funds transfer to make all federal tax
failure to file, negligence, fraud,
15th day of the 4th, 6th, 9th, and 12th
deposits (such as deposits of
substantial valuation misstatements,
months of the tax year. If any date
employment, excise, and corporate
substantial understatements of tax,
falls on a Saturday, Sunday, or legal
income tax). Generally, electronic
and reportable transaction
holiday, the installment is due on the
funds transfers are made using the
understatements from the due date
next regular business day.
Electronic Federal Tax Payment
(including extensions) to the date of
The corporation must use electronic
System (EFTPS).
payment. The interest charge is
funds transfer to make installment
figured at a rate determined under
If the corporation does not want to
payments of estimated tax.
section 6621.
use EFTPS, it can arrange for its tax
Use Form 1120-W, Estimated Tax
professional, financial institution,
for Corporations, as a worksheet to
Late filing of return. A corporation
payroll service, or other trusted third
compute estimated tax. See the
that does not file its tax return by the
party to make deposits on its behalf.
Instructions for Form 1120-W.
due date, including extensions, may
Also, it can arrange for its financial
Penalties may apply if the
be penalized 5% of the unpaid tax for
institution to submit a same-day
corporation does not make required
each month or part of a month the
payment (discussed later) on its
estimated tax payment deposits. See
return is late, up to a maximum of 25%
behalf. EFTPS is a free service
Estimated tax penalty below.
Instructions for Form 1120-L (2018)
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Download Instructions for IRS Form 1120-l - U.S. Life Insurance Company Income Tax Return 2018

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