Surplus Line Filing Procedures, Rules & General Information

Tax Forms and Payment

In this chapter...

Introduction

Tax forms and payments are due twice a year.  The forms and any associated payment due must be submitted by each surplus line licensee.  Only individuals (not businesses) can get a surplus line producer license in Illinois.  Taxes are paid to the State of Illinois and mailed to the address shown on the tax form.

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

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.

Tutorial Videos on This Topic:

• Tax Statements

Tax forms must be filed even if no tax is due.  Failure to file by the due date subjects the licensee to an automatic minimum penalty of $400.

Tax forms 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 forms 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. If you want information 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 form), 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 period.  If you do, call us right away and we might be able to fix it before tax forms are issued.  If you notice it after the tax form is issued, give us a call.  We will try 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.  If you alter the tax form and pay a different amount, you will likely subject yourself to fines and penalties and additional scrutiny by the DOI.

Tax statements must be sent in, even when no tax payment is due!

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

The Calendar Year Surplus Line Producer Fire Marshal Tax Statement and any associated payment are due annually on March 31st for policies filed with the SLAI during the previous calendar year.  Statements are filed with, and taxes are paid to, the State of Illinois, not the Association, and should be mailed to the address shown on the form.

The SLAI generates these forms and mails them to the address shown on the license 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 forms in the mail by 20 days before the due date, contact the Association and we will be happy to send duplicates by mail or by email. Additionally, you can reprint the forms yourself on the EFS.

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 forms.  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.

If you end up with a credit balance on your surplus line or fire marshal tax statement, you might be able to use the credit to offset taxes due on a subsequent tax statement.  Contact Doug Hollis at the Department of Insurance (217-785-0055) for information about whether this is possible and the proper procedures involved.

For information about fees, penalties and interest for filing your tax statements late and/or paying your taxes late, click here.