Minnesota Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers

Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers
2023 IG260, Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers
*226341*

2023 IG260, Nonadmitted Insurance Premium Tax Return
for Surplus Lines Brokers
For the period of	
(check one):		

Jan. 1 - June 30, 2023	
(Due Aug. 15, 2023) 		

July 1 - Dec. 31, 2023
(Due Feb. 15, 2024)

Check if:
Name of Surplus Lines Broker		
Agency Name	

Print or Type

Amended Return 	

License Number	
Check if New Address

Mailing Address		

No Activity Return
Date Licensed

Minnesota Tax ID Number—Required (see instructions)
Social Security Number (last 4 digits)

City 	

State	

Zip Code	

Email Address	

Website Address 	

Contact Person
Daytime Phone	

Fax Number

	1	 Total premiums (from page 2, column G)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1	
2	 Total fees and commissions (from page 2, column H)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2	

Calculate the Amount Due/Overpaid

3	 Total gross premiums (from page 2, column I)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3	
	4	 Total return premiums (from page 2, column J). Enter as a positive number  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4	
	5	 Taxable gross premiums (subtract line 4 from line 3)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5	
	6	 Tax rate is 3% (.03)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 6	

.03

7	 Total tax (multiply line 5 by line 6)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7	
	8	 Penalty (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8	
9	Interest (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9	
	10	 TOTAL AMOUNT DUE or (overpaid) (add lines 7 through 9)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10	
If you owe additional tax (make separate payments for each period):
Payment method:

Electronic payment

Check (payable to Minnesota Revenue; write MN tax ID number on check; attach voucher)

Enter amount paid
Date paid
		(If amount paid is different from amount due on line 10, attach an explanation.)
		If you overpaid: overpayments will be refunded.

Sign Here

I declare that this return is correct and complete to the best of my knowledge and belief.
Signature of Broker		
Signature of Preparer	

Print Name of Preparer	

Date	

Daytime Phone

Date	

Daytime Phone

Mail to: Minnesota Department of Revenue, Mail Station 1780, 600 N. Robert St., St. Paul, MN 55145-1780

(Rev. 9/22)

I authorize the Minnesota
Department of Revenue
to discuss this tax return
with the preparer.

IG260
page 2

2023 Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers (continued)
	
	
	

A	
B	
C	
NAIC			
Number	
Name of Insurer	
Policy Number	

*	 See “Page 2, Column instructions” for a list of codes to enter in
column F.

D	
Effective Date	
(required)	

E	
F	
	Trans. 	
Name of Insured	
Type* 	

Subtotal (if more than one page)  .  .  .  .  .  .  .  .  .  .  .  .  .
Total. (Enter on appropriate lines on page 1) . .  .  .

G	
Total	
Premiums	

H	
All Fees/	
Commissions	

I	
Total Gross 	
Premiums (G + H)	

J
Return
Premiums

2023 Form IG260 Instructions

For insurance tax laws, see Minnesota Statutes, Chapter 297I at www.leg.state.mn.us.
All surplus lines brokers that write or are authorized to write nonadmitted insurance must file Form IG260, Semiannual Statement
of Surplus Lines Insurance, even if there is no activity or tax liability to report during the period. (M.S. 297I.05, subd. 7).

Filing Requirement

Effective July 21, 2011, the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) permits only the insured’s home state to require the
payment of premium tax for nonadmitted insurance.
When Minnesota is the home state of the insured, as provided under M.S. 297I.05, subd. 7, 100% of the gross premiums are taxable in
Minnesota with no allocation of the tax to other states.
“Home state” means the state in which an insured maintains its principal place of business, or in the case of an individual, the individual’s
principal residence.
However, if 100% of the insured risk is located outside Minnesota, then the insured’s home state is the state to which the greatest percentage
of the insured’s taxable premium for that insurance contract is allocated.

Minnesota Tax ID Required

Surplus lines insurance brokers are required to have their own Minnesota tax ID number. This is not a Social Security number or agency
Minnesota tax ID number.
If you don’t have a Minnesota tax ID, you can apply online. Go to our website at www.revenue.state.mn.us and click “Register for a Minnesota
tax ID number” on the e‑Services menu. Note: During the process, be sure to select “Sole proprietor” as the type of legal organization. Use
NAICS classification number 524210.
If you don’t have access to the Internet, call 651‑282-5225 or 1-800-657-3605 to register by phone.

Due Dates

File Form IG260 with all required attachments and pay any tax due by:
•	 Aug. 15 (for the six-month period ending June 30)
•	 Feb. 15 of the following year (for the six-month period ending Dec. 31)
This form must be filed even if no tax is due for the period.
The U.S. postmark date, or date recorded or marked by a designated delivery service, is considered the filing date (private postage meter
marks are not valid). When the due date falls on a Saturday, Sunday or legal holiday, returns and payments electronically made or postmarked
on the next business day are considered timely. When a return or payment is late, the date it is received at the Department of Revenue is
treated as the date filed or paid.
Extension for Filing Return. If good cause exists, you may request a filing extension.

Rules for Using Spreadsheets

If you are using your own spreadsheet, you must include all the information and in the same format as on page 2 of Form IG260, including
subtotals on each page. Your filing will not be considered complete if all information, including subtotals, is not included.
If you have more than two pages of surplus lines insurance, submit an electronic file in addition to the printout. The files must be in a
Microsoft Excel format.

Payments

Electronic Payments

If your total insurance taxes and surcharges for the last 12-month period ending June 30 is $10,000 or more, you are required to pay your tax
electronically in all subsequent years.
You must also pay electronically if you’re required to pay any Minnesota business tax electronically, such as sales or withholding tax.
To pay electronically, go to the department’s website at www.revenue.state.mn.us and log in to e-Services. You’ll need your user name,
password, bank routing, and account numbers. When paying electronically, you must use an account not associated with any foreign banks.
If you use other electronic payment methods, such as ACH credit method or Fed Wire, instructions are available on our website or by calling
Business Registration Office at 651‑282-5225 or 1-800-657-3605.
Submit separate payments for each return.

Continued

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2023 Form IG260 Instructions (continued)
Check Payments

If you are not required to pay electronically and you choose to pay by check, you must mail a personalized payment voucher along with your
estimated tax payment to help ensure the payment is credited correctly. Go to www.revenue.state.mn.us and select Make a Payment. Select
Check or Money Order. Use the Payment Voucher System to create a voucher.
When you pay by check, your check authorizes us to make a one-time electronic fund transfer from your account. You will not receive your
canceled check.
Note: If no amount is due or if you pay electronically, do not send in a voucher.

How to Complete the Form

Complete page 2 before page 1 of Form IG260.
Page 2, Column Instructions
A. NAIC Number
Enter the NAIC number.

B. Name of Insurer
List the insurers. Include policies for insurance companies without NAIC numbers.
C. Policy Number
The policy number (modified by the month and year that the policy was issued) is the controlling number for reporting surplus lines policies
and any subsequent activity during the policy period, i.e., endorsements, audits and/or cancellations.
D. Effective Date (required)
Enter the effective date of the transaction.
E. Name of Insured
Provide the name of the insured.
F. Policy Transaction Type
Enter one of the following numbers:
1 = New business	 4 = Audit
2 = Renewal	
5 = Reinstatement
3 = Cancellation	 6 = Endorsement
G. Total Premiums
Include all premiums paid by companies with a home state of Minnesota for risks located in the United States and U.S. territories.
H. Total Fees and Commissions (excluding stamping fee)
Include all fees and commissions paid by policyholder to obtain coverage that are not included in premiums.
I. Total Gross Premiums
Total premiums and all fees and commissions (column G plus column H).
J. Return Premiums
Enter all return premiums. Include a note indicating on which return the original policy was reported. Return premiums can only be claimed
by the broker where the premiums and taxes were originally reported.

Page 1, Line Instructions
Check Boxes

At the top of the form, check if the return is:
•	 an Amended Return: Check only if you are amending a previously filed return for the same period. Include all original and corrected
policies on the amended return.
•	 a No Activity Return: Check only if you did not have any activity during the period.

Line 4 — Total Return Premiums

Enter all return premiums as a positive number.

Line 5 — Taxable Gross Premiums

Gross premiums include fees and commissions.

Line 8 — Penalty
Continued

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2023 Form IG260 Instructions (continued)
Late Payment. If you don’t pay all the tax due by the due date, a late payment penalty is due. The penalty is 5% of the unpaid tax for any
part of the first 30 days the payment is late, and 5% for each additional 30-day period, up to a maximum of 15%.
Late Filing. Add a late filing penalty to the late payment penalty if your return is not filed by the due date. The penalty is 5% of the unpaid
tax. When added to the late payment penalty, the maximum combined penalty is 20%.
Payment Method. If you are required to pay electronically and do not, an additional 5% penalty applies to payments not made electronically,
even if a paper check is sent on time.

Line 9 — Interest

You must pay interest on the unpaid tax plus penalty from the due date until the total is paid. The interest rate for calendar year 2023 is 5%.
The interest rate may change for future years.
To figure how much interest you owe, use the following formula with the appropriate interest rate:

Interest = (tax + penalty) × # of days late × interest rate ÷ 365

Business Information Changes

Be sure to let us know within 30 days if you change mailing addresses, phone numbers, or any other business information. To do so, go to
our website, login to e-Services and update your profile information. By notifying us, we will be able to let you know of any changes in
Minnesota tax laws and filing requirements.

Information and Assistance
Website:	 www.revenue.state.mn.us
Email: 	 [email protected]
Phone:	 651-556‑3024

This material is available in alternate formats.
For questions about licensing and regulations, contact the Minnesota Department of Commerce:
Website:	www.mn.gov/commerce
Email: 	 [email protected]
Phone:	 651-539-1599 or 1-800-657-3978
Fax:	
651-539-0107
For questions about stamping fees, contact the Surplus Lines Association of Minnesota (SLAM):
Website:	www.mnsla.com
Email: 	 [email protected]
Phone:	 320-679-4244

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