Blank Kentucky 74A118 Form

1. What is the Kentucky 74A118 form?

   The Kentucky 74A118 form is a monthly insurance surcharge report required by the Commonwealth of Kentucky. It is used by insurers to report premiums, assessments, and other charges collected on risks located in Kentucky. This form is essential for compliance with Kentucky Revised Statutes (KRS) regarding insurance premium taxes.

2. Who needs to file the 74A118 form?

   Every domestic, foreign, and alien insurer, except for life and health insurers, must file the 74A118 form. This requirement applies regardless of whether the insurer is subject to or exempt from Kentucky insurance premium taxes. Even if no premiums were collected, insurers must still submit the form.

3. When is the 74A118 form due?

   The form must be submitted to the Kentucky Department of Revenue on or before the 20th day of each month. This deadline applies to all insurers reporting on a monthly basis. Insurers with an annual liability of less than $1,000 for the previous two years can file annually by the 20th day of January of the following year.

4. What information is required on the 74A118 form?

   The form requires several key pieces of information, including:

   • Total premiums collected (including assessments and other charges).
   • Amounts not subject to surcharge, such as premiums returned to policyholders and specific types of insurance.
   • The amount subject to surcharge and the surcharge due at the current rate.
   • Any penalties or interest that may apply.
5. What happens if the form is filed late?

   If the 74A118 form is not filed by the due date, a penalty of 2% of the surcharge due will be applied for each 30 days or fraction thereof that the report is late, up to a maximum of 20%. The minimum penalty is $10. Similar penalties apply for late payments of the surcharge.

6. Are there exemptions from the insurance premium surcharge?

   Yes, certain policyholders are exempt or partially exempt from the surcharge. These include:

   • The federal government.
   • Resident educational and charitable institutions with 501(c)(3) status.
   • Resident nonprofit religious institutions for specific types of coverage.
   • State and local governments for real property coverage.
7. How should payments be made for the surcharge?

   Payments for the surcharge should be made by check payable to the Kentucky State Treasurer. The completed form, along with the payment, should be mailed to the Kentucky Department of Revenue at the specified address. If preferred, payments can also be made online.

Filling out the Kentucky 74A118 form can be a straightforward process, but many people make common mistakes that can lead to complications. One significant error is failing to report the correct total premiums collected. Line 1 requires you to include all premiums, assessments, and other charges collected on risks located in Kentucky. If you mistakenly omit certain premiums, you may face penalties or interest charges later.

Another frequent mistake involves miscalculating the amounts not subject to the surcharge. Lines 2A through 2C list specific categories, such as premiums returned to policyholders and certain types of insurance. If you don’t carefully review these categories, you might incorrectly calculate the total amount not subject to the surcharge, leading to an inaccurate amount subject to surcharge on Line 3.

People often neglect to check the appropriate boxes for amended returns or surplus lines. If your report is an amendment or pertains to surplus lines, it’s crucial to indicate that clearly. Failing to do so can cause confusion and delays in processing your form, resulting in potential penalties.

Inaccurate or incomplete information in the principal officer’s section can also create issues. Ensure that the signature, print name, title, and contact information are all correctly filled out. An incomplete signature or missing information may lead to the rejection of your form, requiring you to resubmit it and possibly incurring late fees.

Additionally, many individuals forget to attach necessary supporting documentation when making adjustments. Line 8 asks for adjustments, and if you claim any, you must provide the relevant documentation. Without this, your adjustments may not be accepted, which can affect the total amount due on Line 9.

Finally, not keeping a copy of the submitted form can be a costly oversight. Always retain a copy of your completed 74A118 form and any correspondence with the Kentucky Department of Revenue. This practice can save you time and trouble if questions or disputes arise regarding your submission.

When dealing with the Kentucky 74A118 form, there are several other documents and forms that may be required or helpful in the process. These documents help ensure compliance with state regulations and provide necessary information for accurate reporting. Below is a list of commonly used forms and documents associated with the Kentucky 74A118 form.

• Form 74A119 - Annual Insurance Premium Tax Return: This form is used by insurers to report their total premiums collected for the entire year, allowing for an annual summary of the insurance premium surcharge.
• Form 74A120 - Amended Return: If an insurer needs to correct information previously submitted, this form is used to file an amended return for any discrepancies in reported premiums or surcharges.
• Form 74A121 - Exemption Certificate: Insurers can use this form to claim exemptions for certain policyholders, such as nonprofit organizations or government entities, which may not be subject to the surcharge.
• Form 74A122 - Payment Voucher: This document accompanies the payment of the insurance premium surcharge, providing details about the payment amount and the reporting period it covers.
• Form 74A123 - Supporting Documentation: Insurers may need to attach additional documents that support their claims for deductions or exemptions, such as proof of premiums returned to policyholders.
• Form 74A124 - Interest and Penalty Calculation Worksheet: This worksheet helps insurers calculate any applicable interest or penalties for late payments or filings, ensuring they understand their financial obligations.
• Form 74A125 - Monthly Reporting Guide: This guide provides detailed instructions on how to complete the 74A118 form and other related documents, helping insurers navigate the reporting process effectively.

Understanding these forms and their purposes can simplify the reporting process and ensure compliance with Kentucky's insurance premium tax regulations. Always consult with a professional if you have questions about specific requirements or need assistance with the documentation process.

The Kentucky 74A118 form is a specific document used for reporting insurance surcharges in the state of Kentucky. Several other forms serve similar purposes in various contexts, ensuring compliance with tax and reporting obligations. Here’s a list of five documents that share similarities with the Kentucky 74A118 form:

• IRS Form 941: This form is used by employers to report income taxes, Social Security tax, and Medicare tax withheld from employee’s paychecks. Like the Kentucky 74A118, it requires detailed reporting of collected amounts and deductions, ensuring accurate tax remittance.
• IRS Form 990: Nonprofit organizations use this form to report their annual financial information. Similar to the Kentucky 74A118, it provides a comprehensive overview of financial activities, including revenue and expenses, while ensuring transparency and compliance with tax regulations.
• State Sales Tax Return: Businesses file this document to report sales tax collected from customers. This form, like the Kentucky 74A118, outlines total amounts collected, deductions, and the final tax due, facilitating proper tax payments to state authorities.
• Form 1099-MISC: This form is utilized to report various types of income, such as payments made to independent contractors. It shares similarities with the Kentucky 74A118 in that it requires detailed reporting of amounts paid, ensuring accurate tax reporting for recipients.
• State Unemployment Insurance (SUI) Report: Employers must submit this report to provide information about wages paid and unemployment taxes owed. Similar to the Kentucky 74A118, it focuses on collected amounts and deductions, ensuring compliance with state unemployment tax laws.

When filling out the Kentucky 74A118 form, it is essential to follow specific guidelines to ensure accuracy and compliance. Below is a list of things you should and shouldn't do.

• Do read the instructions carefully before starting the form.
• Do ensure all required fields are filled out completely.
• Do double-check the calculations for total premiums and surcharges.
• Do include any necessary supporting documentation for adjustments.
• Do keep a copy of the completed form for your records.
• Don't forget to check the appropriate boxes for amended returns or surplus lines.
• Don't submit the form late to avoid penalties and interest.
• Don't claim deductions for premiums that are not eligible.
• Don't overlook the importance of the principal officer's signature.
• Don't use incorrect account numbers or FEIN numbers.

Following these guidelines will help ensure that your submission is accurate and timely. If you have any questions or need assistance, consider reaching out to the Department of Revenue for clarification.

Understanding the Kentucky 74A118 form is essential for insurers operating in the state. However, several misconceptions can lead to confusion. Here are four common misunderstandings:

• Misconception 1: The form is only for large insurance companies.

This is not true. All insurers, regardless of size, must complete the Kentucky 74A118 form. This includes domestic, foreign, and alien insurers, as well as those exempt from certain insurance premiums taxes. Even small insurers with minimal premiums collected are required to file.

• Misconception 2: Only premiums subject to surcharge need to be reported.

In reality, the form requires reporting of all premiums collected, including those not subject to the surcharge. Insurers must detail the total premiums and then subtract the amounts not subject to the surcharge to arrive at the correct figure.

• Misconception 3: Filing the form is optional if no premiums were collected.

This is a misunderstanding. Insurers must file the Kentucky 74A118 form for each reporting period, even if no premiums were collected. Compliance is necessary to avoid penalties.

• Misconception 4: The surcharge is a fee that can be kept by the insurer.

This is incorrect. The surcharge collected from policyholders must be remitted to the state. Insurers are not entitled to any portion of the surcharge as a fee or commission for its collection.

Filling out the Kentucky 74A118 form is an essential task for insurers operating in the state. Here are some key takeaways to keep in mind:

• Purpose of the Form: The Kentucky 74A118 form is used to report the monthly insurance surcharge that insurers must collect from policyholders.
• Who Must File: All domestic, foreign, and alien insurers, except life and health insurers, are required to file this form.
• Reporting Period: Insurers must report and remit the surcharge collected during the preceding month.
• Filing Deadline: The form must be submitted by the 20th day of each month, regardless of whether any premiums were collected.
• Penalty for Late Filing: A penalty of 2% of the surcharge due will be applied for each 30 days the report is late, up to a maximum of 20%.
• Interest on Unpaid Surcharges: Interest will accrue on any unpaid surcharges from the original due date until payment is made.
• Exemptions: Certain policyholders, such as the federal government and nonprofit organizations, may be exempt from the surcharge.
• Deductible Amounts: Insurers can deduct specific amounts from the total premiums reported, including premiums returned to policyholders on terminated policies.
• Signature Requirement: The form must be signed by a principal officer of the company, certifying the accuracy of the report.
• Online Payment: Insurers can opt to pay the surcharge online and should retain confirmation numbers for their records.

Understanding these aspects of the Kentucky 74A118 form can help ensure compliance and avoid penalties. Always refer to the latest guidelines from the Kentucky Department of Revenue for any updates or changes.