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Foreign and domestic insurance companies, including home warranty companies, are required to file an excise tax return on Form 20-INS. Title insurers are not required to file a Form 20-INS. They file Form 20.
Form 20-INS is not based on the federal return. This form begins with "Net Income from the Annual Statement to the Insurance Commissioner." See Form 20-INS and instructions for details.
Provisions regarding this tax can be found in Chapter 317 in 317.010(11), 317.122 and 317.650–317.665.
Filing Requirements
Insurance companies must file an Oregon Insurance Excise Tax Return if they are doing business in Oregon. Insurance companies with agents in this state whose only activity is solicitation are also subject to the excise tax. Companies having income from an Oregon source, such as premiums from existing policy holders, are doing business in Oregon and must file Form 20-INS.
Companies registered with the Insurance Division to do business in Oregon but don't actually do business during the tax year are not required to file Oregon Form 20-INS and are not subject to the minimum tax.
All insurance companies required to file an Oregon Insurance Excise Tax Return must file on a calendar year basis and are subject to the minimum tax.
Estimated tax payments may be required.
To amend an Oregon Insurance Excise Tax Return, use the Form 20-INS for the tax year that is being amended and check the "Amended" box on the front of the return.
Federal and Insurance Division Audit Changes
You must notify the Oregon Department of Revenue if the IRS changes your federal return or the Insurance Division changes your Fire Marshal tax, or retaliatory tax for any tax year and the change affects your computation of Oregon excise tax. If so, you must file a 20-INS Oregon return checking the "Amended" box and attach a copy of the federal or Insurance Division audit report. Mail this separately from your current year's return to:
Oregon Department of Revenue
PO Box 14777
Salem OR 97309-0960
If you do not amend or send a copy of the federal or state audit report, the Oregon Department of Revenue has two years from the date the department is notified of the change by the IRS to issue a deficiency notice. You must file within two years after the date of the federal or state audit report to receive a refund.
Exemptions
Surplus lines insurance companies and fraternal benefit societies are not subject to the excise tax if exempt under IRC 501(c)(8).
Consolidated Returns
Foreign insurers and domestic insurers controlled by foreign insurers are required to file insurance excise tax returns on a separate basis. Unitary domestic insurance companies (incorporated in Oregon) not controlled by foreign insurers incorporated outside of Oregon must file consolidated returns if they were included in consolidated federal returns. An inter-insurance and reciprocal exchange and its attorney-in-fact may file consolidated returns.
Additional Information
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