Insurance Returns

Topics Covered

This guide describes the best insurance practices to use for setting up your returns, including information on each data sourcing method, as well as selecting the appropriate entity and return types for completing your insurance tax returns in the most efficient manner.

Having the correct entity setup and structure allows for the successful e-filing of a mixed group consolidated return to the IRS and to state jurisdictions, as applicable.

Topics in this guide include:

Working in the Tax Application
Selecting the Data Source
Creating the Insurance Return
Working with the 1120-L Tax Return
Working in the 1120-PC Return
Activating State Insurance Returns
Net Operating Loss
Consolidating the Insurance Return
Mixed Group State Consolidation
Printing the Return

Getting Started

The first step in getting started with preparing your insurance tax return is determining how you want to enter your information into the system.

NAIC Annual Statement Transfer The most commonly used method for entering data into the tax return is to import information from the NAIC (National Association of Insurance Commissioners) Annual Statement file, which then automatically populates many of the tax return items. The bulk of the information needed to prepare insurance income tax returns, for both Life returns and Property and Casualty returns, is contained in these files.

Electronic Organizer Alternatively, data can be entered directly in the Electronic Organizer if an NAIC Annual Statement was not prepared, or is not used (as in the case of offshore companies).

1120/ins_intro.htm/TY2021

Last Modified: 03/20/2020

Last System Build: 01/31/2023