Online Filing for Foreign Insurance Premium Taxes (IRS No. 30)
The Foreign Insurance Excise Tax is filed quarterly using Form 720 (Quarterly Federal Excise Tax Return) under IRS No. 30. When you report premiums paid to foreign insurers, Simple720Tax applies the correct 1% or 4% IRS tax rate automatically for error-free e-filing.
Why Correct Insurance Tax Input Matters
Entering accurate insurance types ensures the IRS-approved system assigns the proper tax rate automatically, helping you e-file Form 720 correctly, reduce risks, and stay fully compliant.
Do You Fall Under IRS No. 30 Filing Requirements?
You are required to report Foreign Insurance Excise Taxes on Form 720 if your business buys or pays for insurance or reinsurance coverage from an insurer that is not licensed or authorized to operate within the United States. According to IRS guidance, the tax applies to premiums for the following types of coverage:
- ✓Casualty insurance
- ✓Life insurance
- ✓Reinsurance agreements
- ✓It's important to note that the tax applies regardless of where the payment is made. Even if the insurance premium is paid overseas or through an international transaction, you still must file Form 720 under IRS No. 30.
Information You Should Prepare First
Before beginning your Form 720 filing with Simple720Tax, gather:
- ✓Business or policyholder identification
- ✓Insurance category: life, casualty, reinsurance
- ✓Premium totals paid to foreign insurers
- ✓Policy issue or payment dates
- ✓Supporting documents for exemptions or credits (if any)
Provide Your Policy & Premium Details
When filing online, simply provide:
Premium Payment Date
The date the premium was paid to the foreign insurer.
Type of Coverage
Life, casualty, or reinsurance.
Premium Amount
The total premium paid to the foreign insurer.
Automatic Tax Calculation
The system then auto-calculates the correct IRS tax rate: 4% for casualty insurance, 1% for life or reinsurance. Once entered, Simple720Tax assigns the correct tax line and applies the official IRS logic instantly.
Add Exemptions or Adjustments (If Needed)
Some policies may qualify for exclusions if issued by U.S.-authorized insurers. If the tax was applied incorrectly:
- ✓Request a credit (with policyholder consent)
- ✓File Form 720-X to correct earlier filings
Finalize and Submit Your Foreign Insurance Tax Return
Before completing your submission, verify that all information entered matches your policy records and IRS requirements. Make sure to:
- ✓Review your premium entries to ensure dates, amounts, and insurance categories (life, casualty, reinsurance) are correct.
- ✓Check the calculated tax values based on IRS No. 30 rates
- ✓Validate your Form 720 summary for accuracy, including exemptions or adjustments.
- ✓Proceed to e-file Form 720 securely through Simple720Tax once everything is confirmed.
Payment & Recordkeeping Made Simple
With Simple720Tax, you can:
- ✓Pay taxes securely via integrated payment options
- ✓Save incomplete returns and continue anytime
- ✓Store and access filings for three years
- ✓Track payment receipts and previous Form 720 submissions
Need Help?
If you're unsure about how to report foreign insurance premiums under IRS No. 30, Simple720Tax offers easy-to-use guidance throughout the filing process:
- ✓Use our on-screen help tips to understand insurance categories and required fields.
- ✓Refer to IRS Publication 510 for detailed rules on Foreign Insurance Excise Tax.
- ✓Look up IRS definitions to verify whether your policy is issued by a foreign insurer.
- ✓Reach out to a qualified tax professional if you need assistance with complex or unusual policy situations.
- ✓We're here to make your Form 720 filing easier and ensure you stay aligned with IRS requirements.