Outline
The California Form 570 is a crucial document for individuals and businesses involved in nonadmitted insurance transactions within the state. This form serves as the Nonadmitted Insurance Tax Return, enabling policyholders to report and calculate taxes on premiums associated with nonadmitted insurance contracts. The form requires users to specify the taxable year and select the relevant calendar quarter during which the insurance contracts took effect or were renewed. Key sections of the form include details about the policyholder, such as business name, address, and identification numbers. Additionally, it outlines the tax computation process, where gross premiums are reported and the applicable tax rate of three percent is applied. The form also provides space for reporting any returned premiums, overpayments, or prepayments, ensuring that policyholders can accurately manage their tax obligations. Completing Form 570 is essential for compliance, as it not only determines the tax due but also serves as a mechanism for claiming refunds or addressing amendments to previously filed returns.
Sample - California 570 Form
Form 570 C1 2012 Side 1
For Privacy Notice, get form FTB 1131.
Nonadmitted Insurance Tax Return
CALIFORNIA FORM
570
Business name
Address (number and street, PO Box, or PMB no.) Apt. no./Ste. no.
City State ZIP Code Telephone number
( )
3681133
SSN or ITIN FEIN CA Corp. no. CA SOS file no.
Part II Tax Computation
1 Gross premiums paid or to be paid on risks located entirely within California and California is your principal place of
business or your principal residence. See instructions ......................................................1
2 Gross premiums paid or to be paid by California home state insured, including policies with risks outside California ......2
3 Total taxable premiums. Add line 1 and line 2 .............................................................3
4 Total tax. Multiply line 3 by 3% (.03). (There is no stamping fee) ..............................................4
5 3% of returned premiums previously taxed. Attach copies of all contracts. See instructions.
Total premiums returned $ _________________ Quarter/year taxed _________________ Policy No. _____________ ....5
6 Overpayments from prior quarters. Quarter/year _________________ ........................................6
7 Prepayments. See instructions.........................................................................7
8 Total premiums returned, overpayments, or prepayments. Add line 5 through line 7 ...............................8
9 Balance. Subtract line 8 from line 4. If the amount on line 8 is more than the amount on line 4, see instructions .........9
10
Penalty for late payment of tax. See instructions ..........................................................10
11
Interest on late payment. See instructions ...............................................................11
12 Payment due. Add line 9 through line 11. If the result is positive, enter here. Make a check or money order
payable to the “Franchise Tax Board”. See instructions. Check the box if paying via EFT ......................EFT n.... 12
13
Overpayment. Add line 9 through line 11. If result is negative, enter here ..................................... 13
14
Overpayment to be applied to the next quarter. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15
Refund. Subtract line 14 from line 13 ................................................................. 15
Check entity type:
Corporation Partnership Limited Liability Company Limited Liability Partnership Individual Other (specify)_________________________
If you are an agent or broker with a valid power of attorney authorizing you to file this return on behalf of the insured, enter the following information:
Business Name Business Address Contact Person’s Name
Contact Person’s Phone
Please
Sign
Here
Paid
Preparer’s
Use Only
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Check if
self-employed
PTIN
_____________________________
Date
Date
Telephone No.
( )
FEIN
Business name (or yours, if
self-employed) and address
-
-
May the FTB discuss this return with the preparer shown below? See instructions ..... Yes No
Select calendar quarter during which the taxable insurance contract(s) took effect or was renewed.
Period ending: March 31 June 30 September 30 December 31
___________________________________________________________________________
Print or type elected officer or authorized person’s name
___________________________________________________________________________
Elected officer or authorized person’s signature
________________________________________________________________
Print or type preparer’s name
________________________________________________________________
Preparer’s signature
TAXABLE YEAR
2013
Amended
Part I Policyholder
First name
DBA (if applicable)
Last name
Initial
M M Y Y Y Y
M M Y Y Y Y
Side 2 Form 570 C1 2012
3682133
Policyholder Name: ________________________________________________________ Policyholder’s ID No.: ________________________
Part III
Insurance Contracts – If you have more than 24 policies to report, enter the additional policies on another Side 2 of Form 570. Total each Side 2
on the bottom separately. Do not create a schedule to report additional policies. We only accept and process official versions of Side 2 of Form 570.
PRINT CLEARLY
a
Policy Number
b
Name of each Nonadmitted Insurance Company
c
Type of Insurance Coverage
d
Location of Risks
e
Total Premium
Total ....................................................................................................
Form 570 Instructions 2012 Page 1
Instructions for Form 570
Nonadmitted Insurance Tax Return
References in these instructions are to the California Revenue and Taxation Code (R&TC) and the California Insurance Code.
What’s New
Do Not Round Cents to Dollars – On this form,
do not round cents to the nearest whole dollar.
Enter the amounts with dollars and cents.
General Information
A user of this form may have to file up to four
Form 570 tax returns in one year if the user
purchases nonadmitted insurance contracts in
each calendar quarter.
Assembly Bill (AB) 315, effective July 21, 2011,
conforms California law to the Nonadmitted and
Reinsurance Reform Act (NRRA) that is part of
the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, enacted by the federal
government and authorizes the collection of tax
on 100 percent of the premiums of California
home state insured policies. Thus, if a person is
determined to be a California home state insured,
then all premiums related to all insurance policies
obtained from a nonadmitted insurer are subject
to tax, as long as the premiums are for policies
related to risks within the United States. This
is a change from when California only taxed
premiums related to California risk. The NRRA
only allows one state to tax a home state insured,
so proration of premiums among the states for
taxation no longer occurs.
For more information, go to ftb.ca.gov and
search for nonadmitted insurance tax.
To receive nonadmitted insurance tax information
by email, go to ftb.ca.gov and search for
subscription services.
Definitions:
•
Home state – the state where the insured
maintains its principal place of business, or if
individual, the individual’s principal residence;
if 100% of the insured risk is located in a
state outside the insured’s principal place
of business or principal residence, then it is
where the greatest percent of the insured’s
taxable premium for that insurance contract is
allocated.
•
Principal place of business – the state
where the insured maintains its headquarters
and where the insured’s high-level officers
direct, control, and coordinate the business
activities; or if the insured’s high-level officers
direct, control, and coordinate the business
activities in more than one state, the state in
which the greatest percentage of the insured’s
taxable premium for that insurance contract
is allocated; or if the insured maintains its
headquarters or the insured’s high-level
officers direct, control, and coordinate the
business activities outside the U.S., the
state to which the greatest percentage of the
insured’s taxable premium for that insurance
contract is allocated.
•
Principal residence – the state where the
insured resides for the greatest number of
days during a calendar year; or if the insured’s
principal residence is located outside the U.S.,
the state to which the greatest percentage
of the insured’s taxable premium for that
insurance contract is allocated.
•
Home state insured – or “home state insured
applicant” – a person whose home state is
California and who has received a certificate
or evidence of coverage as set forth in Section
1764 of the Insurance Code or a policy as
issued by an eligible surplus line insurer, or a
person who is an applicant.
•
Multistate risk – means a risk covered by a
nonadmitted insurer with insured exposures in
more than one state.
The total gross premium paid or to be paid for
all nonadmitted insurance placed in a single
transaction with one underwriter or group of
underwriters, whether in one or more policies,
in that calendar quarter during which the taxable
insurance contract or contracts took effect or were
renewed, is now the entire gross premium charged
on all nonadmitted insurance for the California
home state insured. Enter only premiums for
policies related to risks within the U.S.
Private Mail Box (PMB) – Include the PMB in
the address field. Write “PMB” first, then the box
number. Example: 111 Main Street PMB 123.
Foreign Address – Enter the information in the
following order: City, Country, Province/Region,
and Postal Code. Follow the country’s practice for
entering the postal code. Do not abbreviate the
country’s name.
A Purpose
Use Form 570, Nonadmitted Insurance Tax
Return, to determine the tax on premiums
paid or to be paid to nonadmitted insurers on
contracts covering risks. Also, use Form 570 to
file an amended return. See Section E, Amended
Returns, for more information.
B Who Must Pay Nonadmitted
Insurance Tax
The tax is imposed on a home state insured who
independently purchases or renews an insurance
contract during the calendar quarter from an
insurer, including wholly-owned subsidiaries,
not authorized to transact insurance business in
California.
If you do not know if the insurer is authorized
to conduct business in California, call the FTB
Nonadmitted Insurance Desk at 916.845.7448.
The tax will not be imposed on any of the following:
•
Insurance coverage for which a tax on the
gross premium is due or has been paid by
surplus line brokers pursuant to Insurance
Code Section 1775.5 (surplus lines tax).
•
Gross premiums on businesses governed by
provisions of Insurance Code Section 1760.5
(reinsurance of the liability of an admitted
insurer and marine, aircraft, and interstate
railroad insurance).
•
Insurance coverage for which a tax on the
gross premium is due or has been paid by risk
retention groups pursuant to Insurance Code
Section 132.
Agents or brokers with a valid power of attorney
to file a return on behalf of the insured must enter
the requested information in the space below
line 15.
C Tax Rate
The tax rate is three percent (.03). This rate is
applied to the gross premium paid or to be paid,
less premiums returned because of cancellation
or reduction of premium on which a tax has been
paid. Do not include a stamping fee.
D When and Where to File
File Form 570 on or before the first day of the
third month following the close of any calendar
quarter during which a nonadmitted insurance
contract took effect or was renewed:
Contract effective date
Return due date
January - March June 1
April - June September 1
July - September December 1
October - December March 1
Mail Form 570 and payment to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
E Amended Returns
Use Form 570 to file an amended return. File an
amended return to correct an error on the original
return or to claim a refund.
Check the “Amended” box at the top of the form.
Attach a copy of the original return behind the
amended return and write “copy” in red across
the face of the original return. When completing
line 1 through line 15 of the amended return, use
the amounts that should have been reported on
the original return.
Amended returns must be filed within four years
of the original due date or within one year from
the date of the overpayment, whichever period
expires later.
Attach copies of all contracts for changes to
correct an error on the original return or to claim
a refund.
Do not file an amended return to claim returned
premiums. See the Specific Line Instructions for
line 5.
F Third Party Designee
If the entity wants to allow the FTB to discuss its
2013 return with the paid preparer who signed
it, check the “Yes” box in the signature area of
the return. This authorization applies only to the
individual whose signature appears in the “Paid
Preparer’s Use Only” section of the return. It does
not apply to the business, if any, shown in that
section.
If the “Yes” box is checked, the entity is
authorizing the FTB to call the paid preparer
to answer any questions that may arise during
the processing of its return. The entity is also
authorizing the paid preparer to:
Page 2 Form 570 Instructions 2012
• Give the FTB any information that is
missing
from the return.
•
Call the FTB for information about the
processing of the return or the status of any
related refund or payments.
•
Respond to certain FTB notices about math
errors, offsets, and return preparation.
•
The entity is not authorizing the paid preparer
to receive any refund check, bind the entity to
anything (including any additional tax liability),
or otherwise represent the entity before the
FTB.
The authorization will automatically end one year
from the date this tax return was filed. If the entity
wants to expand the paid preparer’s authorization,
get form FTB 3520, Power of Attorney Declaration
for the Franchise Tax Board. If the entity wants to
revoke the authorization before it ends, notify the
FTB in writing or call 800.852.5711.
Specific Instructions
Part I – Policyholder
Enter the business or individual policy holder
name, Doing Business As (DBA), if applicable,
address, and identification number. Print
all information using CAPITAL LETTERS. If
completing Form 570 by hand, enter all the
information requested using black or blue ink.
Part II – Tax Computation
Do not show net or negative amounts on line 1
through line 4 to account for returned premiums.
See line 5 for returned premiums. Only use line 1
through line 4 to report taxable premiums paid or
to be paid during the calendar quarter.
Line 1 – Enter all gross premiums paid or to be
paid on risks located entirely within California
for policies entered into or renewed during the
calendar quarter.
Line 2 – Enter all gross premiums paid or to
be paid by California home state insured for all
policies issued by a nonadmitted insurer for
coverage both inside and outside of California
which were entered into or renewed during the
calendar quarter. Note: Enter only premiums for
policies related to risks within the U.S.
Line 5 – Enter three percent (.03) of the
premiums returned during the calendar quarter
because of cancellation or reduction of premiums
on which nonadmitted insurance tax was paid.
Enter the quarter that the returned premiums were
originally taxed. If the returned premiums are from
more than one quarter or policy, attach a schedule
showing the amount of returned premiums from
each quarter and/or policy.
Returned premiums must be claimed on a return
for the calendar quarter during which the returned
premiums were received. Refunds resulting from
returned premiums must be claimed within four
years from the original due date of the return, four
years from the date the return was filed or one
year from the date of cancellation or reduction of
premium, whichever is later.
If you are an agent or broker filing this return on
behalf of the insured, the refund will be mailed to
you in the name of the insured if a signed Power
of Attorney is on file allowing the FTB to do so.
Attach copies of all contracts where there was a
reduction of premiums returned or cancellation
on which nonadmitted insurance tax was paid.
Line 6 – Enter the amount of overpayment you
requested to be applied from a prior quarter
that was not applied on a previously filed return.
These payments may include amounts from an
amended Form 570. Enter the calendar quarter
and taxable year as MM-YYYY of the calendar
quarter the overpayment occurred. For example,
if the calendar quarter and tax year is September
30, 2010, enter 09-2010.
Line 7 – Enter any payments made before filing
the return. If the return is being filed after the due
date, see the instructions for line 10.
Line 9 – If the amount on line 4 is more than the
amount on line 8, subtract line 8 from line 4 and
enter the balance on line 9, you have tax due. If
the amount on line 8 is more than the amount on
line 4, subtract line 4 from line 8 and enter the
result in brackets on line 9, your credits exceed
your tax.
Line 10 – If you do not pay the tax due by the
due date, a penalty of 10% of the amount of tax
due will be imposed. Enter 10% of the amount of
tax not paid by the due date. (A penalty of 25%
of the amount of tax due will be imposed when
nonpayment or late payment is due to fraud.)
Line 11 – Interest will be charged on any late
payment and penalty from the due date to the
date paid. Interest compounds daily and the
interest rate is adjusted twice a year. If you do not
include interest with your late payment or include
only a portion of it, the FTB will compute the
interest and bill you for it.
Line 12 – Enter the total amount due. Make your
check or money order payable to the “Franchise
Tax Board.” Write the calendar quarter (March,
June, September, or December), the applicable
taxable year, Form 570, and your social security
number (SSN), individual taxpayer identification
number (ITIN), California corporation number,
federal employer identification number (FEIN), or
California Secretary of State (SOS) file no. on the
check or money order. Check the EFT box if you
made your payment by EFT.
Electronic Funds Transfer (EFT) – To submit your
nonadmitted insurance tax payment using EFT,
use the following tax type code, EFT code 02020.
You must use the correct EFT code to ensure
proper credit to your FTB account.
Line 14 – Enter the amount of overpayment to be
credited to your next quarter’s return.
Part III – Insurance Contracts
Column a – Enter the policy number for each
contract. Enter only policies related to risks within
the U.S.
Column b – Enter the name of all the Nonadmitted
Insurance Companies for each contract.
Column c – Enter the type of insurance coverage
provided by the contract.
Column d – Enter the full name or the two letter
abbreviation of the state where the risk is located
for each contract. If your policy covers more than
one state, then use additional lines to list the
locations of the risk separately.
Column e – Enter the total premium amount for
each contract.
Total – Enter the total of Form 570, Side 2,
column e.
Additional Information
If you have questions, contact: FTB Nonadmitted
Insurance Desk at 916.845.7448 or call the
Withholding Services and Compliance automated
number at 888.792.4900.
OR write to:
WITHHOLDING SERVICES AND
COMPLIANCE MS F182
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
You can download, view, and print California tax
forms and publications at ftb.ca.gov.
OR to get forms by mail write to:
TAX FORMS REQUEST UNIT MS F284
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741-0307
For all other questions unrelated to withholding
or to access the TTY/TDD numbers, see the
information below.
Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the
United States
916.845.6500 from outside the
United States
TTY/TDD: 800.822.6268 for persons with
hearing or speech impairments
Asistencia Por Internet y Teléfono
Sitio web: ftb.ca.gov
Teléfono: 800.852.5711 dentro de los Estados
Unidos
916.845.6500 fuera de los Estados
Unidos
TTY/TDD: 800.822.6268 personas con
discapacidades auditivas y del habla
Form Information
| Fact Name | Description |
|---|---|
| Purpose of Form 570 | The California Form 570 is used to report and calculate the Nonadmitted Insurance Tax on premiums paid to nonadmitted insurers for contracts covering risks. |
| Tax Rate | The tax rate imposed on the gross premiums is three percent (3%). This rate applies to premiums paid for policies covering risks located within the United States. |
| Filing Frequency | Taxpayers may need to file up to four Form 570 returns in a single year, corresponding to each calendar quarter in which a nonadmitted insurance contract is purchased or renewed. |
| Governing Laws | The form is governed by the California Revenue and Taxation Code and the California Insurance Code, specifically Assembly Bill (AB) 315 and the Nonadmitted and Reinsurance Reform Act (NRRA). |
| Amended Returns | Taxpayers can file an amended Form 570 to correct errors or claim refunds. This must be done within four years of the original due date or one year from the date of overpayment. |
Detailed Guide for Filling Out California 570
Filling out the California Form 570 is essential for reporting nonadmitted insurance tax. Once you have completed the form, ensure that you submit it by the deadline specified for the relevant calendar quarter. This will help you avoid penalties and ensure compliance with state tax regulations.
- Download the California Form 570 from the California Franchise Tax Board website or obtain a physical copy.
- At the top of the form, select the appropriate calendar quarter for which you are filing by marking the corresponding box.
- In Part I, enter the policyholder's business name, first name, last name, and Doing Business As (DBA) if applicable. Provide the identification number (SSN, ITIN, FEIN, CA Corp. no., or CA SOS file no.).
- Fill in the address, including the street address, apartment or suite number, city, state, and ZIP code. Include a telephone number.
- In Part II, report the gross premiums paid or to be paid on risks located entirely within California in line 1.
- Enter the gross premiums paid or to be paid by California home state insureds in line 2.
- Add the amounts from line 1 and line 2, and enter the total on line 3.
- Multiply the amount on line 3 by 3% and enter the total tax on line 4.
- If applicable, report any returned premiums in line 5, along with the corresponding policy information.
- Enter any overpayments from prior quarters in line 6, and report any prepayments in line 7.
- Add lines 5 through 7 and enter the total on line 8.
- Subtract line 8 from line 4 and enter the balance on line 9. If line 8 exceeds line 4, follow the instructions provided.
- If you owe a penalty for late payment, calculate it and enter the amount on line 10.
- Calculate interest on late payments and enter it on line 11.
- Add lines 9 through 11 to determine the total payment due on line 12. If paying electronically, check the EFT box.
- Report any overpayment on line 13 and indicate if you want it applied to the next quarter on line 14.
- Calculate any refund due by subtracting line 14 from line 13 and enter it on line 15.
- Check the appropriate entity type box and fill in the required information if you are an agent or broker filing on behalf of the insured.
- Sign and date the form, ensuring that all information is accurate and complete.
- Mail the completed form and payment to the specified address for the Franchise Tax Board.
Obtain Answers on California 570
-
What is the California 570 Form?
The California 570 Form is used to report and pay taxes on nonadmitted insurance premiums. This form helps determine the tax owed on premiums paid or to be paid for insurance contracts covering risks. It is important for individuals and businesses that purchase nonadmitted insurance in California.
-
Who needs to file the California 570 Form?
Anyone who is a home state insured and purchases or renews a nonadmitted insurance contract must file this form. A home state insured is someone whose principal place of business or residence is in California.
-
When is the California 570 Form due?
The form is due on the first day of the third month following the end of each calendar quarter in which the insurance contract took effect or was renewed. For example, if a contract starts in January, February, or March, the form is due by June 1.
-
What is the tax rate for nonadmitted insurance premiums?
The tax rate is 3% of the gross premiums paid or to be paid. This rate applies to all taxable premiums, excluding any stamping fees.
-
What information do I need to provide on the form?
You will need to enter your business name, address, identification number, and the gross premiums paid. You must also report any returned premiums or overpayments from previous quarters.
-
Can I amend my California 570 Form?
Yes, you can file an amended return if you need to correct an error or claim a refund. Simply check the "Amended" box at the top of the form and attach a copy of the original return.
-
What happens if I miss the filing deadline?
If you file late, you may incur a penalty of 10% of the tax due. Additionally, interest will be charged on any unpaid amounts from the due date until paid.
-
How do I make a payment for the tax due?
You can make a payment by check or money order made out to the "Franchise Tax Board." If you prefer, you can also pay electronically using Electronic Funds Transfer (EFT).
-
What if I have questions about the form?
If you have any questions, you can contact the FTB Nonadmitted Insurance Desk at 916.845.7448. They can provide assistance regarding the form and the filing process.
-
Where do I send the completed California 570 Form?
Mail the completed form and payment to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267-0651
Common mistakes
Filling out the California Form 570 can be a straightforward process, but several common mistakes can lead to complications. One significant error is neglecting to select the correct calendar quarter for the taxable insurance contracts. Each quarter has specific deadlines and requirements, so choosing the wrong one can result in delays or penalties.
Another frequent mistake involves incorrect entries in the policyholder information section. Providing inaccurate names, addresses, or identification numbers can create issues with processing the return. It is crucial to ensure that all details are entered accurately, as discrepancies may lead to further inquiries from the Franchise Tax Board.
Many individuals fail to report all gross premiums accurately. Line 1 and Line 2 must reflect the total premiums paid or to be paid on risks located entirely within California and those from California home state insured policies, respectively. Omitting or miscalculating these amounts can lead to an incorrect tax computation.
Another common oversight is rounding amounts. The instructions specify that individuals should not round cents to the nearest dollar. Entering amounts with cents is essential for accurate calculations, yet many people overlook this detail, which can affect the total tax owed.
In addition, some filers mistakenly fail to attach required documentation, especially when claiming returned premiums or overpayments. Line 5 requires copies of all contracts related to returned premiums. Without this documentation, the return may be rejected or delayed.
Another mistake involves the calculation of penalties and interest for late payments. Individuals often underestimate these charges or fail to include them in their total payment due. Understanding how to calculate these amounts accurately is essential to avoid additional fees.
Some individuals also neglect to check the box indicating whether they wish to allow the Franchise Tax Board to discuss the return with their preparer. This can complicate communication if questions arise during processing. It is advisable to make this choice clear to facilitate any necessary follow-up.
Finally, failing to sign and date the form is a common but critical mistake. The declaration at the end of the form requires a signature to validate the information provided. Without a signature, the return may be considered incomplete, leading to potential penalties or processing delays.
Documents used along the form
The California 570 form, used for reporting nonadmitted insurance tax, is often accompanied by several other forms and documents that help provide a complete picture of the tax obligations. Below are four commonly used documents that can be relevant when filing the 570 form.
- Form 570 Side 2: This document is used to report additional insurance contracts if the taxpayer has more than 24 policies. Each policy's details, including the policy number, insurance company, type of coverage, and premium amounts, must be included. It is essential for accurately reflecting the total premiums associated with nonadmitted insurance.
- Form FTB 3520: This is the Power of Attorney Declaration for the Franchise Tax Board. If an agent or broker is filing the 570 form on behalf of the insured, this form grants them the authority to do so. It allows the FTB to discuss the return with the designated preparer, making communication smoother and more efficient.
- Form 570-X: This is the Amended Nonadmitted Insurance Tax Return. It is used when a taxpayer needs to correct an error on a previously filed 570 form or to claim a refund. The form must be submitted with the original return attached, marked as a copy, to ensure that the FTB processes the amendment correctly.
- Supporting Documentation: Taxpayers may need to provide copies of contracts or policies associated with returned premiums. This documentation is crucial for substantiating claims for refunds or adjustments related to previously taxed premiums due to cancellations or reductions.
Understanding these accompanying forms and documents can simplify the filing process and ensure compliance with California tax regulations. Proper documentation not only supports accurate reporting but also helps in addressing any potential issues that may arise during the review of the tax return.
Similar forms
The California Form 570, Nonadmitted Insurance Tax Return, shares similarities with several other tax-related documents. Here is a list of eight documents that resemble the California 570 form:
- IRS Form 1040: This is the standard individual income tax return used in the United States. Like Form 570, it requires detailed reporting of income and deductions, and it is used to calculate tax liability.
- IRS Form 1065: This form is used by partnerships to report income, deductions, and other tax-related information. Similar to Form 570, it involves calculating tax obligations based on gross income and expenses.
- IRS Form 1120: Corporations use this form to report their income, gains, losses, and tax liabilities. Both forms require comprehensive financial information and are filed annually.
- California Form 100: This is the California Corporation Franchise or Income Tax Return. Like Form 570, it is used to determine tax obligations based on income generated within the state.
- California Form 540: This is the California Resident Income Tax Return. Similar to Form 570, it is used by individuals to report income and calculate taxes owed to the state.
- California Form 941: This form is used for reporting payroll taxes. Both forms require accurate reporting of financial data and compliance with state regulations.
- IRS Form 990: Nonprofit organizations use this form to report their financial activities. Similar to Form 570, it involves detailed financial disclosures and is essential for tax compliance.
- California Form 3522: This form is used for the LLC annual tax. Like Form 570, it requires specific financial information and is essential for maintaining compliance with California tax laws.
Dos and Don'ts
When completing the California 570 form, there are several important guidelines to follow. Below is a list of things to do and avoid to ensure accurate and timely submission.
- Do print all information clearly using capital letters.
- Do include the correct taxable year and quarter for the insurance contracts.
- Do enter all gross premiums accurately, including those for risks located entirely within California.
- Do attach copies of all contracts for any returned premiums claimed.
- Do ensure that the form is signed by the elected officer or authorized person.
- Do file the form by the due date to avoid penalties and interest.
- Don't round cents to the nearest dollar; report amounts with dollars and cents.
- Don't leave any fields blank; all required information must be completed.
- Don't report net or negative amounts on lines 1 through 4.
- Don't submit a schedule for additional policies; use Side 2 of the form instead.
- Don't forget to check the box if paying via Electronic Funds Transfer (EFT).
- Don't file an amended return without attaching a copy of the original return.
Misconceptions
- Misconception 1: The California 570 form is only for large businesses.
- Misconception 2: Only California residents need to file this form.
- Misconception 3: The tax rate for the nonadmitted insurance is higher than 3%.
- Misconception 4: You can file the form at any time during the year.
- Misconception 5: Returned premiums do not need to be reported.
- Misconception 6: Filing an amended return is complicated.
- Misconception 7: You do not need to keep records of your insurance policies.
- Misconception 8: The form can be submitted electronically.
- Misconception 9: There is no penalty for late payment.
- Misconception 10: The form is only for specific types of insurance.
This form applies to any individual or entity that purchases nonadmitted insurance, regardless of size. Small businesses and individuals may also need to file.
Anyone classified as a California home state insured, which can include out-of-state residents with certain insurance policies, must file.
The tax rate is fixed at 3% of the gross premium paid or to be paid, with no additional fees.
The form must be filed by the first day of the third month following the close of each calendar quarter.
Returned premiums must be reported on the form, specifically in line 5, to adjust the taxable amount.
Filing an amended return is straightforward. Just check the "Amended" box and attach the original return.
It is essential to maintain records of all policies, as they must be reported on the form and may be required for verification.
Currently, the California 570 form must be mailed in; electronic submission is not available.
Late payments incur a penalty of 10% of the tax due, in addition to interest on the unpaid amount.
The form applies to all nonadmitted insurance contracts, covering various types of risks, as long as the insured is classified as a California home state insured.
Key takeaways
The California Form 570 is used to report and calculate the Nonadmitted Insurance Tax on premiums paid to nonadmitted insurers. This tax applies to contracts covering risks located entirely within California.
It's essential to accurately complete all sections of the form, including the policyholder's information, tax computation, and details about insurance contracts. Clear and legible entries are crucial.
The tax rate for this form is 3% of the gross premiums paid or to be paid, excluding any stamping fees. Be sure to include only premiums related to risks within the U.S.
Form 570 must be filed by the first day of the third month following the close of any calendar quarter in which the insurance contract took effect or was renewed. Missing this deadline can result in penalties.
If an error is found on the original return, an amended return can be filed using Form 570. This must be done within four years of the original due date or one year from the date of overpayment.
When filling out the form, avoid rounding cents to the nearest dollar. Always report amounts in full, including cents, to ensure accurate tax calculations.