Surplus Line Filing Procedures, Rules & General Information

Surplus line tax statements and payments are due twice a year.  Fire marshal tax statements and payments are due once a year.  The statements and any associated payment due must be submitted by each surplus line licensee.  The statements must be filed even if no tax is due.  Only individuals (not businesses) can get a surplus line producer license in Illinois so the filing and tax payment responsibilities fall on the individual licensee.  Taxes are paid to the State of Illinois and mailed to the address shown on the tax form.

Although the SLAI sends statements out to the licensees, just like with the personal IRS 1040 form and tax payment, surplus line producers bear the ultimate responsibility for obtaining the statements, filing them by the due date and paying any related taxes.

Since, by law, taxes are due based on filings with the Association, never change the numbers on the tax statement. Contact the SLAI if you don't think the numbers are right, or if you need a copy of the form.

Tax statements are generated by the SLAI and mailed to address shown on the surplus line producer's license.  Sometimes this is the producer's home address!  Keep your eyes open and check your mail for the statements about 30 days prior to the due dates.

About 30 days prior to the due date, the tax statements are also available to be printed from the EFS.  Click here to see information about reprinting tax statements and reports from the EFS.

The premium filings and tax amounts due are completed by the SLAI based on the filings made.  By law, tax is due based on the filings made with the SLAI during the period - not based on procurement date or any other criteria. If you want instructions to help you see what makes up the amounts on your tax form (for instance, if you were matching up specific policies and endorsements to what is shown on your tax statement), click here.

Click here to see how to download the detail that matches up to the numbers on the tax form that the Association sent you.  You should be checking your activity reports every month against your records so that there will be no mistakes on your tax form when it is generated.  Sometimes you will notice a mistake from the last month of the tax period.  If you do, call us right away and we might be able to fix it before tax statements are issued.  If you notice it after the tax form is issued, give us a call.  We will endeavor to make adjustments where possible, but typically you will have to pay the tax as shown and the correction will show up on your subsequent tax form.

Never alter the numbers on your tax form.  These numbers are based on your filings with the SLAI which are, in effect, your reports to the Department of Insurance about what taxes you will pay and represent the tax amounts you are statutorily obligated to pay for that period.  If you alter the tax statement and pay a different amount, you will likely subject yourself to fines and penalties and additional scrutiny by the DOI.

* Prior to January 1, 2022, the due date for fire marshal tax was March 31st each year.

Tax statements must be sent in, even if you had no activity, and even if no tax payment is due!

Surplus Line Tax

The Surplus Line Producer Semi-Annual Tax Statement together with any associated tax payment is due twice per year: August 1st for all policies and endorsements filed with the SLAI from January to June; and February 1st for policies and endorsements filed from July to December.  Statements are filed with, and taxes are paid to, the Illinois Department of Insurance, not the Association. They should be mailed to the address shown on the form.

Fire Marshal Tax

The Calendar Year Surplus Line Producer Fire Marshal Tax Statement together with any associated tax payment is due annually on February 1st for policies and endorsements filed with the SLAI during the previous calendar year.  Statements are filed with, and taxes are paid to, the Illinois Department of Insurance, not the Association. They should be mailed to the address shown on the form.

Important Information

The SLAI generates these statements and mails them to the address shown on the license, unless the licensee has designated a separate tax statement recipient. Statements are sent in ample time for the licensee to review, file and pay.  Typically, you will receive the statements about 30 days before the due date. If you do not receive your statements in the mail by 15 days before the due date, you should reprint the statements yourself on the EFS.  If you are unable to access the statements from the EFS, feel free to contact the Association and we will be happy to send duplicates by mail or by email.

When submitting tax statements, always use a service that provides proof of mailing and proof of delivery. For information about fees, penalties and interest for filing your tax statements late and/or paying your taxes late, click here.

There is nothing in the surplus line statute that requires you to obtain proof of mailing or proof of delivery for your tax statements.  However, since failure to file by the due date could subject a licensee to substantial fines and penalties, it is prudent and advisable to use a delivery system that can provide proof of mailing and proof of delivery.  We strongly encourage you to do so.

When proof of mailing and delivery is accessible online via a tracking number (as is typically the case with UPS, FedEx and USPS), please note that this proof is often no longer available after 3 months. It is advisable to access the proof of mailing and delivery online a couple of weeks after mailing, and print it out so you can keep it in your files together with your copy of the tax statement. Disputes about receipt of a tax statement or payment often do not even arise until many months, or even years, after the due date.

Remember, although the Association mails the tax statements out to you, you don't mail them back to us -- you mail them to the Illinois Department of Insurance at the address on the statement. So how do I know if the DOI got the statements and/or payments I sent in?

• First, the easiest way to tell is to use the tracking information you have (you did follow our advice and use a service that provides proof of mailing and proof of delivery, right?). While you are checking the tracking information, it's a good idea to print it out to paper or to a PDF and save it with your tax information. Services that provide tracking confirmations online often only make the information available for a few months. However, in our experience, disputes about when and whether tax statements and payments were sent or received don't occur until many months, or sometimes years, after the due date.
• Second, if you owed taxes, you can tell if the statement and check were received by checking with your bank to see if the check has cleared your account.

If you failed to use a service that provides tracking, and you cannot confirm with your bank that your tax payment check cleared, you can contact Lindsey Merriman at the DOI by email (). Around tax time, they are deluged with such requests and other tax problems so please (please!) contact them only if you are unable to confirm receipt through one of the other methods!