TSSN-17
Special Notice on Foreign and Domestic
Insurance Companies Tax
Insurance Companies Tax
The new tax law affects the estimated payments of these types of companies in the following manner. It requires that four (4) estimated tax payments a year be paid as follows:
| 15th day of 3rd month | 30% of total tax |
| 15th day of 6th month | an aggregate of 70% of total tax |
| 15th day of 9th month | an aggregate of 80% of total tax |
| 15th day of 12th month | an aggregate of 100% of total tax |
Domestic insurance companies are required to file a declaration if their tax liability for the preceding income year exceeded $1,000 even if their tax liability for the current year is $1,000 or less.
If the estimated tax paid is less than the actual tax liability, interest will be payable on the amount of the underpayment. If the amount of the underpayment is more than 10% of the actual tax liability, a penalty of 10% or $50, whichever is greater, will be imposed.
NOTE - For calendar year companies, the first estimated tax payment for calendar year 1989 only must be paid by April 15, 1989.
These changes are effective for tax years beginning on or after January 1, 1989.
TSSN-17 (NEW 3/89)