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Frequently Asked Questions
TAX DIVISION

Table of Contents

General Questions
Surplus Lines
Admitted Insurers (Form 1061, Form 1071, and Form 1076)


General Questions

What is the mailing address and physical location of the Louisiana Department of Insurance?

How can the Tax Division be reached?

Must the tax payment check be attached to the tax statement?

Can tax forms be filed online?

How can I obtain the ability to file Form 1076 and 1061 online?

If the due date of a tax filing falls on a weekend or holiday, when is the filing due?

When is a tax statement/tax payment considered late?

Does the Department of Insurance issue refunds for tax overpayments?

Are electronic funds transfers (EFTs) accepted by the Louisiana Department of Insurance?

Do tax forms/tax payments have to be sent by certified mail?

Where can the insurance and related tax laws contained in R.S.22 be found online?

 


What is the mailing address and physical location of the Louisiana Department of Insurance?

Mailing Address: P. O. Box 94214, Baton Rouge, Louisiana 70804-9214
Physical Address: 1702 N. Third Street, Baton Rouge, Louisiana 70802

Please send all information relative to tax filings to the attention of the Insurance Premium Tax Division.

How can the Tax Division be reached?

A representative of the Tax Division can be reached by emailing taxdivision@ldi.la.gov or by fax at (225) 342-9708. Questions may also be sent via e-mail to the Tax Director, Tommy Coco, at tcoco@ldi.la.gov.

Must the tax payment check be attached to the tax statement?

For allocation and recording purposes and to ensure payment is receipted to the proper account, it is best that tax payments accompany the relevant tax form for which payment is being issued.

Can the tax forms be filed online?

Form 1265, the Surplus Lines Producer's Quarterly Tax Statement,Form 1061, the Annual Premium Tax Statement and Form 1076, the Annual Municipal Premium and Tax Report, can be filed online by choosing "Industry Access" from the Department's homepage www.ldi.la.gov.

The Department does not currently have the ability to accept other tax filings online.

How can I obtain the ability to file Form 1076 and 1061 online?

If you have not previously signed up since the new Industry Access Portal redesign in August, 2008, you must sign up using the Industry Access link on our homepage at www.ldi.la.gov.  You will enter your e-mail address and a password and the other information requested.  Then hit the "Sign Up" button.  This will send an e-mail requesting permission to the Department.  You will shortly receive a confirmation e-mail.  Then, log back in to the Industry Access link with your e-mail address and the password you have chosen and follow the instructions which can be downloaded at this point.  If you have any questions or problems signing up, please contact Mike Boutwell. His e-mail address is mboutwell@ldi.la.gov. 

If the due date of a tax filing falls on a weekend or holiday, when is the filing due?

If the due date of a tax filing falls on a weekend or holiday, the filing is due on the next business day.

When is a tax statement/tax payment considered late?

The tax statement/tax remittance must be postmarked by the U.S. Postal Service on or before the due date. If it is sent through a carrier other than the U.S. Postal Service, the statement must be received by the Louisiana Department of Insurance, no later than one day past the due date.

Does the Louisiana Department of Insurance issue refunds for tax overpayments?

The Louisiana Department of Insurance will issue refunds for tax overpayments after receiving a refund request in writing. Please send your request to the attention of the Insurance Premium Tax Division at one of the addresses listed in question #1 above. Note: All quarterly prepayment obligations for the year must be met and are withheld from the requested refund amount if they have not yet been paid.

Are electronic fund transfers (EFT's) accepted by the Louisiana Department of Insurance?

Tax and filing fee payments from insurance companies are the only EFT payments currently accepted. Detailed instructions are available by following this link: Electronic Fund Transfer - ACH Credit Instructions .

Do the tax forms/tax payments have to be sent by certified mail?

While the Louisiana Department of Insurance does not require tax filings and/or tax payments be sent by certified mail, it is highly recommended. The decision is left to the discretion of the taxpayer.

Where can the insurance and related tax laws contained in R. S. 22 be found on line?

The website of the Louisiana Legislature http://www.legis.state.la.us offers the capability to search Louisiana laws. From their homepage, under the "Louisiana Laws Search" heading are several boxes needing to be filled in to refine your search. The "Law Body" box should reflect "RS" for Revised Statutes. The "Title, Article, or Rule Number" box should be filled in with "22" for Title 22 and the "Section Number" box should be filled with the particular section of Title 22 to be displayed, such as 1061, 1071, 1265, 1258 or 627, for example. If the "Section Number" is left blank, all of Title 22 will be displayed, which is quite lengthy.

 

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Surplus Lines

Who must file Form 1265?

When is Form 1265 due?

Do I need to file Form 1265 if there is no business written for the quarter?

When do I begin filing Form 1265?

If I have a surplus line producer's license as an individual and the agency I work for also has a surplus lines producer's license, does Form 1265 need to be filed by both?

Are there any fines for not filing a required tax statement?

Can Form 1265 be filed online?

Do I need to submit a printed, signed copy of Form 1265 if I have filed the form online?

If Form 1265 is filed online, what should I send with the check?

Does the Department of Insurance accept electronic fund transfers (EFT's) for the payment of surplus lines taxes?

Can Form 1265 be downloaded?

Do I have to file all 3 pages of Form 1265?

Does Form 1265 have to be sent via certified mail?

When is a filing considered late?

If the due date of a tax filing falls on a holiday or weekend, when is the filing due?

What is the tax rate?

Are policy fees taxable?

What is the penalty rate and how is it determined and calculated?

Which Louisiana statutes should I be most familiar with as a surplus lines producer?

Where can I view the Louisiana Revised Statutes relative to surplus lines?

Where should the surplus lines stamp be placed?

Will I be audited?


Who must file Form 1265?

Form 1265 must be filed by all licensed surplus lines producers until the license is cancelled, revoked, or expires. If the surplus lines authority is removed or expires from a license at any time during a quarter, Form 1265 must be filed for that quarter.

When is Form 1265 due?

First Quarter: June 1
Second Quarter: September 1
Third Quarter: December 1
Fourth Quarter: March 1

Do I need to file Form 1265 if there is no business written for the quarter?

Yes, if you are a licensed surplus lines producer.

When do I begin filing Form 1265?

Begin filing Form 1265 in the quarter in which surplus lines authority was added to your license.

If I have a surplus lines producer's license as an individual and the agency I work for also has a surplus lines producer's license, does Form 1265 need to be filed by both?

Yes, as long as both licenses are in effect.

Are there any fines for not filing a required tax statement?

Yes. The normal fine for not filing a required tax statement is $100.00, per occurence.

Can Form 1265 be filed online?

Yes, it is recommended in order to reduce errors and to expedite the processing of the statement. In August, 2008 the online system was redesigned. If you have not signed up since the redesign of the Industry Access portal, you will need to sign up. From the Department's home page www.ldi.state.la.us, select "Industry Access" located near the top of the page. Then click on "Sign Up" and enter the information requested including your e-mail address and a password of your choosing. Then hit the "Sign Up" button at the bottom. This will send an e-mail to the Department. Shortly, you will receive an e-mail verifying that you are a registered user. Then log in to the Industry Access link again and follow the instructions which can be downloaded. If you have any questions or problems, please contact Mike Boutell at mboutwell@ldi.state.la.us.

Do I need to submit a printed, signed copy of Form 1265 if I have filed the form online?

No.

If Form 1265 is filed online, what should I send with the check?

At the end of the online filing process, after reading the Agree/Disagree statement, there is an opportunity to print a copy of the return and a payment coupon. Please send the payment coupon or print a copy of your online filing for your records and attach your check to a copy of Page 1. It is not necessary to send a complete copy of the filing with your check.

Does the Department of Insurance accept electronic fund transfers (EFT's) for the payment of surplus lines taxes?

Not at this time.

Can Form 1265 be downloaded?

Yes. Form 1265 is available and may be downloaded from our website www.ldi.state.la.us. From the home page, select Insurers, then Tax Filing and then Surplus Lines Tax Forms & Instructions. Finally, choose Form 1265 Quarterly Surplus Lines Producer Tax Statement.

Do I have to file all 3 pages of Form 1265?

Yes, all three pages of the form must be submitted if filing manually.

Does Form 1265 have to be sent via certified mail?

While it is not mandatory, it is recommended.

When is a filing considered late?

A filing is considered late if postmarked by the U.S. Postal Service later than the due date of the form. If sent through a service other than the U. S. Postal Service without a postmark, the statement will be considered late if received more than one day after the due date.

If the due date of a tax filing falls on a holiday or weekend, when is the filing due?

The filing would be due on the next business day.

What is the tax rate?

5% of the total taxable premium.

Are policy fees taxable?

Yes.

What is the penalty rate and how is it determined and calculated?

The penalty rate is 10% of any unpaid tax balance, where there is no carry forward credit balance to apply. Penalties are also calculated on any late premiums being reported for the quarter at the rate of 10% of the 5% tax due. Penalty charges also apply if the mailing containing the tax remittance is postmarked by the U. S. Postal Service after the due date or is received more than one day after the due date if sent by a carrier not utilizing a postmark.

Which Louisiana statutes should I be most familiar with as a surplus lines producer?

L. R. S. 22: 627, 1248-1271. These statutes do not deal with the licensing of a producer.

Where can I view the Louisiana Revised Statutes relative to surplus lines?

The website for the Louisiana Legislature www.legis.state.la.us offers the capability to search Louisiana laws. From their homepage, under the "Louisiana Laws Search" heading are several boxes needing to be filled in to refine your search. The "Law Body" box should reflect "RS" for Revised Statutes. The "Title, Article, or Rule Number" box should be filled in with "22" for Title 22 and the "Section Number" box should be filled with the particular section of Title 22 to be displayed, such as 1265, 1258 or 627, for example. If the "Section Number" is left blank, all of Title 22 will be displayed, which is quite lengthy.

Where should the surplus lines stamp be placed?

The surplus lines stamp must be placed on the policy's declaration page.

Will I be audited?

Yes. The Louisiana Department of Insurance routinely schedules field audits of your surplus lines activities. An examiner from the Tax Division will be assigned and will make arrangements to perform the audit. Preliminary questionnaires are mailed out to assist the examiner and reduce the time actually spent at the producer's office. The audits are scheduled approximately every 3 to 5 years or as needed.


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Admitted Insurers (Form 1061, Form 1071, and Form 1076)

When are the tax statements due?

Do Form 1061 and Form 1071 need to be filed when there is no business written and no tax due?

What attachments need to be filed with Form 1061?

Do you accept computer-generated forms?

Will the Department approve computer-generated forms before use?

Can estimated quarterly tax payments be calculated using current year premiums, rather than previous year's tax liability?

What is LIGA?

What is LLHIGA?

How can I contact LIGA and LLHIGA?

When are municipal taxes due and are they paid to the Louisiana Department of Insurance?

Where should premium be allocated on Form 1076 if the risk's location is not listed?

What parish is this municipality in?

Can Form 1076 be submitted on worksheets prepared by the insurer and not on Form 1076?

When are the tax statements due?

Form 1061, the Annual Premium Tax Statement, and Form 1076, the Annual Municipal Premium & Tax Report are due March 1 of each year. Form 1071, the Quarterly Tax Statement is due as follows:

First Quarter: April 15
Second Quarter: July 15
Third Quarter: October 15

Do Form 1061 and Form 1071 need to be filed when there is no business written and no tax due?

Form 1061 must be filed by all insurers licensed to write business in the state, regardless of whether or not premiums were actually written. Form 1071 should be completed and filed by all insurers who do not have overpayment credits and are actually remitting quarterly payments.

What attachments need to be filed with Form 1061?

Insurers must file a copy of Schedule T and the Louisiana State Page from their annual statement. For HMO's, in place of the state page, a copy of the Underwriting & Investment Exhibit, Part 1 - Premiums, should be filed. Also, attach supporting documentation for any credits being taken.

Do you accept computer-generated forms?

The Department will accept computer-generated forms, if they are identical to the forms provided by the Department.

Will the Department approve computer generated forms before use?

No. The responsibility for verifying the accuracy of the forms is upon the company filing the form.

Can estimated quarterly tax payments be calculated using current year premiums, rather than previous year's tax liability?

No. By statute, the quarterly prepayment tax liability must be calculated from the previous year's tax liability.

What is LIGA?

LIGA is an acronym for Louisiana Insurance Guaranty Association. The purpose of LIGA is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer.

What is LLHIGA?

LLHIGA is an acronym for Louisiana Life and Health Insurance Guaranty Association. The purpose of LLHIGA is to protect against failure in the performance of contractual obligation, under life and health insurance policies and annuity contracts because of the impairment of insolvency of the insurer issuing the contracts.

How can I contact LIGA and LLHIGA?

LIGA can be reached at (225) 757-1688.
Their mailing address is 2142 Quail Run Drive, Baton Rouge, LA 70810.

LLHIGA can be reached at (225) 318-0656.
Their mailing address is 450 Laurel Street, Baton Rouge, LA 70801.

When are municipal taxes due and are they paid to the Louisiana Department of Insurance?

Municipal taxes should be remitted directly to the respective municipality on or before June 1 of each year.

Where should premium be allocated on Form 1076 if the risk's location is not listed?

If a municipality is not found on Form 1076, the premium should be allocated to the parish in which that municipality resides.

What parish is this municipality in?

To locate the residing parish of a municipality, visit
http://www.state.lib.la.us/empowerlibrary/LA Cities and Towns.pdf. This is a searchable database of municipalities maintained.

Can Form 1076 be submitted on worksheets prepared by the insurer and not on Form 1076?

Yes. The worksheet must contain the Municipal Code, the Municipal Name, and the premium amount just as does Form 1076. Please be sure to include the name of the company, NAIC number, and filing year on the worksheet.

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