efile720.com
efile720.com
Emailsupport@efile720.com
Support (628) 267-4400 (Monday - Friday 5:00 am to 7:00 pm PST)

File IRS Form 720 for Foreign
Insurance Excise Tax Online

The Foreign Insurance Excise Tax is a federal excise tax that applies to insurance or reinsurance premiums that are paid for United States risks when the coverage is placed with a non-U.S. licensed insurance company. The tax is assessed based on a percentage of the amount of the premium paid and is reported and paid every quarter using IRS Form 720. This requirement serves to ensure that when insurance premiums are paid to a foreign insurer, they remain compliant with U.S. tax laws.

Efile720 offers an easy, safe, and secure solution to filing the Foreign Insurance Excise Tax online and removes the burden of manually preparing the return.

E-File Form 720

Who Is Required to File?

You may be required to file the Foreign Insurance Excise Tax if you are:

  • U.S. company purchasing insurance coverage from a foreign (non-U.S. licensed) insurer
  • A broker placing coverage with a non-admitted foreign insurer
  • A business that is paying premiums on reinsured contracts in a non-admitted foreign company's account.
  • Any person or corporation responsible for reporting the excise tax on premiums on foreign insurance on Form 720.

Purpose of Foreign Insurance Excise Tax

Failure to file or pay accurately may result in IRS penalties, interest, and compliance issues.

  • Regulate taxation of premiums paid to foreign insurers.
  • Ensure tax parity between foreign and domestic insurers.
  • Ensure that the federal government has oversight over insurance transactions between foreign countries and the United States.
  • Provide a means for collecting excise tax revenues on U.S. insurance covered by a policy issued by a foreign company.

Form 720 Reporting Functions

Efile720 maps Foreign Insurance Excise Tax data directly to applicable Form 720 Part I (Tax)
entries, reducing manual interpretation of IRS worksheets.

Guided Entry

Guided entry for taxable
premiums

Auto Calculation

Automatic calculation of excise tax due

Form Mapping

Line-by-line alignment with Form 720 reporting fields

E-File

Electronic submission of completed Form 720

Secure Payment

Secure processing of tax payment amounts

Quarterly Compliance and Record Maintenance

Efile720 assists filers in meeting quarterly filing and payment requirements under IRS excise tax regulations.

Compliance Protection

Built-in error prevention and IRS-compliant filing
features

Tax Period

A clear identification of the tax year and quarter-end
date is displayed.

Centralized Access

Centralized access to filed Form 720
returns

Secure Records

Secure storage of payment confirmations and
IRS acknowledgments

Foreign Insurance Excise Tax Filing Deadlines

Quarter Reporting Period Due Date
Q1 January - March April 30
Q2 April - June July 31
Q3 July - September October 31
Q4 October - December January 31

Late or missed filings may trigger IRS penalties and interest.

Start Filing Today

Avoid penalties and ensure accurate reporting of Foreign Insurance Excise Tax.
File your IRS Form 720 online with Efile720 in minutes.

File Foreign Insurance Excise Tax Now

Frequently Asked Questions

The IRS requires you to report your Foreign Insurance Excise Tax using Form 720 for the 1st Quarter (January - March) by the due date of April 30 each year.

The rate of Foreign Insurance Excise Tax is 1/4 of 1% (as defined in the Internal Revenue Code (IRC) §4371) of the premiums you have placed with or paid to non-U.S. based insurance companies or reinsurers in accordance with IRS guidelines.

You may file your Foreign Insurance Excise Tax electronically through Efile720. This online filing service will provide you with a secure environment for creating, submitting, and paying your Foreign Insurance Excise Tax electronically while ensuring that your return is in compliance with IRS regulations.

If you do not file your Foreign Insurance Excise Tax return by the deadline, you may be subject to penalties and increased IRS scrutiny from the IRS for late filing.

Efile720 maintains a complete, secure electronic record of all Foreign Insurance Excise Tax returns, payments, and audit histories for reference purposes.

Recent Blogs