Producer FAQ
I have a credit balance on my tax return and would like a refund. How do I get the money back?
Primary Refund Method
The primary method of refund is the use of a credit balance from a prior period to offset taxes due for the current or future periods. To accomplish this, file your tax statement and enclose a letter explaining that you are using a prior credit to offset current taxes. You should also enclose a copy of the previous tax statement showing the credit balance, along with copies of your canceled check(s), if applicable. It's a good idea to clear this in advance by contacting Lindsey Merriman (, 217-782-9760) at the Illinois Department of Insurance.
The Department does not allow licensees to offset surplus line taxes with credits relating to the fire marshal tax, or vice versa.
Cash Refund
Pursuant to Section 412 of the Illinois Insurance Code, when a surplus line licensee has overpaid taxes and makes a request within 6 years, the Department of Insurance has the power to provide a cash refund. However, the law states that a cash refund will NOT be provided if:
- the amount of the overpayment is less than $100;
- if the amount of the overpayment can be fully offset against the taxpayer's estimated liability for the year following the year; or
- if there are insufficient funds in the Insurance Premium Tax Refund Fund.
For further information, apply for a refund by contacting Lindsey Merriman via email (shown above), or by mail at:
Lindsey Merriman
Illinois Department of Insurance
320 W. Washington St.
Springfield, IL 62767
Other
If you have a credit balance and you will no longer be writing surplus line business in Illinois, you may be allowed to sell your credit to another licensee. This must be coordinated with the Surplus Line Association and the Department of Insurance. Contact the Association for assistance.
Disclaimer
The materials and information contained herein are only synopses of laws, regulations and other information and do not constitute legal advice. It is recommended that you consult your legal advisers regarding application of state and federal laws and regulations to any particular situation. The Surplus Line Association of Illinois (SLAI) does not undertake and hereby disclaims any obligation to advise you of any change to laws and regulations or to the SLAI procedures.
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