Foreign Insurance Taxes

You must file under IRS No. 30 if you purchase or issue insurance policies with a foreign insurer (not authorized in the U.S.). This tax applies to premiums paid for policies such as: • Casualty insurance. • Life insurance. • Reinsurance with foreign carriers.

Before filing, prepare: • Business details (name, address, EIN). • Type of insurance (life, casualty, reinsurance). • Premium amount for each policy issued by a foreign insurer. • Dates of policy issuance or premium payment.

When filing online, provide the following for each taxable premium: Tax Date – date the premium was paid or policy issued. Type of Event / Insurance – e.g., casualty, life, reinsurance. Premium Amount ($) – the gross premium subject to tax. Tax Amount ($) – system auto-calculates based on IRS rules: Once you enter the premium amount and type of insurance, the system applies the correct IRS tax rate.

Certain policies may qualify for exemption if issued through U.S.-authorized carriers. If tax was collected in error, you may file for a credit or refund (after obtaining policyholder consent). Adjust prior filings through Form 720-X if necessary.

Verify all premium amounts and policy types. Confirm that the correct rate (1% or 4%) was applied. Submit Form 720 electronically once reviewed.

Pay excise tax on foreign insurance premiums through the integrated payment gateway. Save filings in progress and return later if needed. Keep policy and premium records for at least three years. Access your past returns and payment history online.

Use the help tool for quick reference on insurance types and rates. Review IRS Pub. 510 for full rules on foreign insurance excise tax. Consult a tax professional if unsure whether a policy qualifies as foreign-issued.