Filing your tax return
( 731.840 Retaliatory or corporate excise tax in lieu of certain taxes and assessments; certain local taxes prohibited).
LOG ON TO iReg and then:
- Select your company name,
- Select “Taxes/Assessments” at the top of the screen,
- Select “Insurance Tax Return” at the top of the screen, which brings you to the “Filing List” screen, which lists historical filings by year, and their related audits and amendments.
- If you do not see the current year’s return:
- Scroll to the bottom of the screen and select " Add filing", and a new return for the current year should appear.
- Select “Save” at the bottom of the screen so that the return doesn’t disappear. Do not select “Submit” until your return is complete, and you are ready to file.
- Select the radio button in front of the current filing year,
- Select “Filing details” to the left of the screen to see the return and begin your input.
RETURN SCHEDULES: Schedules A, C, D, and E are automatically populated. Schedules B, F, and G may require input from you. Make sure to “Save” your return before exiting the screen or your input will be lost
Attaching Supporting Documents
SUPPORTING DOCUMENTATION: must be provided for line items you input, and their calculations, if they are not already self-explanatory. If support documents are not provided in the “Attachments” to the return, your audit may be delayed for several months while we contact you to request clarification. If clarifications are not received, we will eventually adjust your return based on the information available. Support documents can include worksheets, copies of statutes, emails, summary explanations, copies of paid invoices, etc. All supporting documents should be attached to the return, clearly labeled, and easy to understand.
To attach documents to your return:
- Your return must be in the “ Save” mode ( not yet submitted).
- File types that can be attached are Excel, Word, or PDF; emails will not attach unless they are converted to one of the compatible file types (e.g. an email may be copied to Word, saved, then attached to the return).
- Select “Filing Attachments” at the left of either the “Filing list” or the “Filing Details” screens.
- Select the “Browse” tab which will allow you to select the appropriate document from your own files.
- Enter a brief description of the file you are attaching.
- Select “Upload”.
- When you have attached all documents, you can either go back to the return and select “Save” and then continue working on the return, or, if you have completed your return and are ready to file, select the “Submit” box and then select the “Save” tab.
- Name: the name of the company
- Address 1: the contact person for the return
- Address 2 & 3: the company’s mailing address
- Phone: area code is three digits, main number is seven digits (no dash), “x” is the extension number, up to five digits.
- Email address: for the contact person. (Many companies will enter a generic “tax dept” email here. However, when we send our questions to generic emails, our response rate is very low, which may put your company at unnecessary risk of being charged penalties, interest, additional tax liability, and a delay in the completion of our audit. We have better response rates when a specific person’s email is used.)
Schedule A: Workers' Compensation Premium Fund Assessment Paid by Insurer
(ORS 656.612, 656.726, 705.135, OAR 440-045-0020)
If you are not authorized for workers' compensation, this schedule will not be available to you.
WC Payments: This schedule is automatically populated for you, and it is the amount paid by the insurer during the tax year for Workers’ Compensation assessments.
WC Refunds: automatically populated. Because the return currently only shows WC assessment payments made during the current tax year, and because WC refunds in Schedule A may pertain to several previous tax years, resulting audit adjustments to previous tax years are possible.
Schedule B: Agent Appointments
(ORS 744.052 to 744.089)
This schedule requires input from you, although, calculations are automatic. There are three ways to calculate agent appointment fees. Which method you choose depends on how your domicile state calculates them.
- Resident and non-resident annual renewing fee: enter the number of agents in each category and the fee that your domicile state charges.
- Total number of agents renewing in the tax year, times the cost of renewal.
- Agents appointed initially in the tax year and agents terminated in the tax year, times the fee that your domicile state charges.
If your state uses a different method than these three, you can probably use the second choice to enter your agent appointment fees. If your state doesn't charge any agent appointment fees, leave this schedule blank. Oregon does not charge agent appointment fees.
Schedule C: Health Premium Assessment
This schedule requires your input, but is automatically calculated for you, and it pertains to the following two Oregon House Bills:
Schedule D: Funding Operations Assessment
This schedule is automatically populated and shows the amount paid during the year for this assessment which is due 10/31. If nothing appears for the funding assessment, that means your company’s bill was $25 or less, which we do not bill for, and you have no payment to make. Late payments are subject to interest charges.
Schedule E: Tax Prepayments
(ORS 731.822 Prepayment of tax due)
This schedule is automatically populated and shows amounts paid during the year for three scheduled prepayments of tax liability. The 1 st prepayment is due 6/15, the 2 nd is due 9/15, and the 3 rd is due 12/15. If no prepayments appear for the current year, that means that your company’s prior year’s Fire Marshal and Retaliatory tax liabilities were less than $400 in total, and no prepayments are required. If prepayments are required and are paid late, they will be subject to penalty and interest charges.
Schedule F: Fire Marshal Tax
(ORS 731.820 Gross premium tax on fire insurance premiums)
This schedule requires input from you, but the calculations are automatic. Enter your premiums from the Oregon State Page for the lines of business indicated. Note that you can enter the premiums and then enter the dividends for those premiums in separate columns. IReg will calculate the taxable premium and the total tax liability.
For “aircraft physical damage”, you may use the actual premium amount for just the physical damage portion of “aircraft”. Then iReg will calculate the taxable amount.
Schedule G: Retaliatory Tax Calculation
(ORS 731.854 Retaliatory tax)
Home State Basis:
( 731.804 Assessments; rules; fees; how determined, 731.808 “Gross amount of premiums” defined, 731.812 Foreign and alien insurer’s report of Oregon business, NAIC VOL I Retaliatory Guide)
Home State Basis: is the total taxes, fees, license costs, and surcharges that an Oregon insurer would pay to your domicile state, for the current tax year, for doing the same amount of business in your state as your company has done in Oregon.
Line 8 Premium or Privilege Tax: premiums entered here will be verified by NAIC State Page and will be adjusted during audit for any unexplained or unsupported differences. If you adjust the premium so that it does not match the Oregon state page, attach supporting documents or worksheets that clearly explain how your numbers are calculated.
If your state charges different rates for different types of premiums, you may use some of the blank lines to input the premiums with different tax rates.
Examples of other charges by the domicile state: If your domicile state charges fees or taxes that are not listed on the Oregon Insurance Tax return, use lines 5, 6, 10, or 11 to list their name and amount. If your domicile state would charge Oregon insurers any of the following assessments, they must be included in the Home (domiciled) State Basis:
- Agent Appointments fees and/or termination fees
- Fraud fees or assessments
- Insurance Department regulation fee or administrative assessment
- Auto assessments (even if recouped from policyholders)
- Health Insurance Pool assessments (similar to Oregon Medical Insurance Pool)
- Workers' Compensation Fund assessments or administrative fund assessments
- Second Injury Fund assessments
- State corporate Income or excise taxes or franchise taxes
- Fire Marshal taxes or assessments, any Fire Insurance Tax or fee
- Fire Fighters Training Funds or Retirement Fund assessments
- Most fees or assessments imposed but not listed above.
Guaranty Fund Assessment Credits: Pursuant to ORS 734.835 Assessments offset against tax liabilities; rate. (1) A member insurer may offset against its corporate excise tax liabilities to this state an assessment described in ORS 734.815 (8), at the rate of 20 percent of the amount of such assessment for each of the five calendar years following the year in which such assessment was paid. In the event a member insurer should cease doing business, all uncredited assessments may be credited against its premium or corporate excise tax liabilities for the year it ceases doing business.
Do not include any credits related to assessments made by the OIGA (Oregon Insurance Guaranty Association) or OLHIGA (Oregon Life and Health Insurance Guaranty Association) in the calculation of the home state basis or the Oregon basis of the return on iReg. These credits are only allowed to be taken on the Oregon Excise Tax Return OR-20-INS, administered by the Oregon Dept. of Revenue. For information purposes, OIGA and OLHIGA assessments and any available credits may be viewed on iReg at “Taxes/Assessments”, “OIGA”, “OLHIGA” tabs at the top of the screen. https://dfr.oregon.gov/business/reg/insurer/Pages/guaranty-fund.aspx
These are the taxes, fees, etc. that your company is being charged by Oregon for the current year and are based on the actual premiums written in Oregon by your company.
- Line 14 is the Oregon Excise tax (OR-20-INS) paid for the tax year. This requires your input. If you are estimating this tax, please mark the estimated box. Refunds will not be issued until the excise tax actually paid has been verified by the Oregon Department of Revenue. The Excise tax paid will be net of guaranty fund assessment credits that you entered on the Excise Tax return.
- Line 15 WCD Assessment will automatically populate from Sch A if you paid this assessment in the current year. WCD refunds issued will be deducted from assessments paid, and may result in previous years’ returns to be adjusted also.
- Line 16 Fire Marshal Tax will automatically populate from Sch F.
- Line 17 Funding Operations Assessment will automatically populate from Sch D.
- Line 18 Oregon Medical Insurance Pool (OMIP) is currently not used and should show $0.
- Line 19 Health Premium Assessment will automatically populate from Sch C.
- Line 20 Certificate of Authority renewal fee will automatically populate ($1,500 for a regular admitted insurer and $350 for a Risk Retention Group).
- Line 21 Total Oregon Basis and is automatically calculated.
- Line 22 Retaliatory tax is automatically calculated and is the difference between “Home State Basis” and “Oregon Basis”. If “Home State Basis” exceeds “Oregon Basis”, the difference is retaliatory tax that your company owes. If “Oregon Basis” equals or exceeds “Home State Basis”, retaliatory tax is zero.
Summary & Financial Calculations :
Fire Marshal Tax: automatically populated and calculated
- Fire Marshal Tax (from Sch F)
- Fire Marshal Tax prepayments (from Sch E)
- Fire Marshal Tax due (Line 1 minus Line 2)
Retaliatory Tax: automatically populated and calculated
- Retaliatory Tax (from Sch G, Line 22)
- Retaliatory Tax prepayments (from Sch E)
- Retaliatory Tax due (Line 4 minus Line 5)
Certificate of Authority: automatically populated and calculated
- Renewal Fee or registration fee (this is your annual renewal for the upcoming year; $1,500 for regularly admitted insurers and $350 for Risk Retention Groups)
Total Taxes and Fees: automatically populated and calculated
- Add lines 3+6+7 for additional tax liability due from insurer, or refund due to insurer.
- Name of the officer certifying the return
- Title of the officer
- Phone to contact officer
- Email of the officer
- Check the box for certification
Save Tab (does not submit return)
If you want to save your work but are not yet ready to file the return, select the “Save” tab at the bottom of the return screen, but do not check the “Submit box”.
Submit box (to “file” your return)
When you have completed the return and are ready to file it, three things must be done:
- Check the certification box,
- Check the “Submit” box,
- Select the “Save” tab.
Your return will be considered filed on that date. However, if you still see a red “PENDING” on the “Filing List” screen, that means your return is not filed, and you must repeat these three steps or contact one of our Tax Analysts (below) to complete the filing process.
If you have filed your return but want to change or update something later, you can amend your return by selecting “Amend Return” at the bottom of the “Filing List” screen. If Additional Tax Liability is due as a result of your amendment, print a payment coupon and mail in the bottom portion with your check to the address on the payment coupon. If you do not pay the additional liability at the time of your amendment, you will be subject to interest for late payment, for the period starting with the original due date (April 1), until the amount due is paid.
Occasionally, you may file your return and immediately realize that you made a mistake. If you contact one of our tax analysts (below), it may be a situation that they are able to “roll back” your filed return to the “unfiled” status so that you can quickly make your corrections. Doing this means your return is not considered to be “filed” until you actually submit and save your return again. This is not an option, though, once we have received payment on your tax liability.
If Additional Tax Liability Is Due From The Insurer:
PRINT PAYMENT COUPON:
If you need to make a payment, scroll to the bottom of the “Filing list” screen and select the “Print Payment Coupon”. Mail the payment coupon with your check to the address on the payment coupon (see below for our street address also).
If Refund is Due To The Insurer:
If the return results in a refund, there is nothing further for you to do. The refund will be issued as we audit the tax returns and the excise tax paid is verified by the Oregon Dept. of Revenue (return Sch G, Line 14).
The Audit Process:
The audit process can take several months to audit the current year for all states’ returns. The NAIC VOL I Retaliatory Guide is our main reference source in auditing the returns. The more up-to-date and easy to understand your state’s entries are in the NAIC Guide, the faster our audits can be completed. The more return line items that are not explained with supporting documentation, the longer it takes us to complete the audits.
The main items that cause delays in the process are:
- Premiums on Sch G, Line 8, do not match the State Page with no supporting documentation explaining the differences attached to the return.
- All fees, taxes, charges that your state would charge Oregon for retaliatory purposes are not included in the “Home State Basis”, or the calculations are not supported with documentation attached to the return.
- Entries for your state in the NAIC VOL I Retaliatory Guide are not up to date, or need clarification.
- Having to wait for the verification of the Excise Tax paid from the Oregon Department of Revenue, especially if your excise return is on extension.
- Out-of-date users and contacts for your company in iReg can cause significant delays when we have questions, or are tracking late filers and payments. This is crucial in minimizing penalties and interest charges for your company.
DUE DATES, ETC.:
- Fire Insurance Tax: April 1
- included in the Insurance Tax Return
- 731.820 Gross premium tax on fire insurance premiums
- Late payments are subject to 10% penalties and interest of 8% per annum (ORS 731.842 (2) (3) )
- Funding Operations Assessment: October 31
- Health Premium Assessment: quarterly, 45 days after each quarter-end
- Insurance Tax Prepayments: 6/15, 9/15, 12/15
- 731.822 Prepayment of tax due
- Late payments are subject to 10% penalties and 8% per annum interest (ORS 731.842 (2) (3) )
- Insurance Tax Return (based on premiums; calculates retaliatory tax): April 1
- 731.854 Retaliatory tax, 731.859 Applicability of retaliatory provisions
- Late payments are subject to 10% penalties and interest of 8% per annum (ORS 731.842 (2) (3) )
- Ocean marine Tax Return: June 15
- Oregon Corporate Insurance Excise Tax Return (OR-20-INS): April 15
- Renewal of Certificate of Authority: April 1
- 731.354 Certificate of authority required, 731.410 Continuance, expiration or reinstatement of certificate of authority
- Late payments are subject to revocation of the certificate of authority on the 60 th day after the date on which the payment or filing was due, which would be 6/1.
- Requests for release of Security Deposits held for Workers’ Compensation: June 1
- 731.648 Duration and release of deposit
- 731.652 Proofs for release of deposit to insurers; director’s responsibility
- Special Oregon Sch P: March 1
- For insurers authorized to write Workers’ Compensation, 731.628 Deposit required of workers’ compensation insurance.
- Late filings are subject to civil penalties of $500 per day minimum and up to $10,000 maximum, (ORS 731.988 Civil penalties ).
PENALTIES AND INTEREST FOR LATE PAYMENTS:
- Tax liabilities: 10% of unpaid tax liability.
- Tax prepayments: 10% of unpaid tax liability.
- Funding Operations Assessment: no penalties.
- Tax liabilities: interest will accrue from the original due date until the payment is received, or by postmark, at the rate of 8% per annum (.667 percent of the unpaid tax for each month, or fraction of a month).
- Tax prepayments: interest will accrue from the original due date until the payment is received, or by postmark, at the rate of 8% per annum (.667 percent of the unpaid tax for each month, or fraction of a month).
- Funding Operations Assessment: interest will accrue at 9% per annum of the unpaid assessment from the original due date until the date payment is received, or by postmark.
POSTMARKS: will be considered for payments and those filings that must be made by paper. For on-line electronic filings, the date the return was submitted is the filing date.
The address listed on the tax form should be the address where the company wants all Oregon insurance tax information to be sent and should be the same as the address we already have in our systems. If you have a change-of-address, an NAIC UCAA #14 https://www.naic.org/industry_ucaa.htm form must be completed and emailed or mailed to the tax analysts’ contact information.
Addresses for Insurance Institutions:
Payment Coupon Address:
Dept. of Consumer and Business Services
PO Box 14480
Salem, OR 97309-0405
Street Address for Payments:
Dept. of Consumer and Business Services
350 Winter St. NE
Salem, OR 97301-3883
Street Address for Correspondence:
Dept. of Consumer and Business Services
Division of Financial Regulation
Insurance Institutions 4 th Floor
350 Winter ST NE
Salem, OR 97301-3883
Tax Analysts Contact Information:
For assistance with Tax Returns, Prepayments for Tax Returns, Schedule P, Funding Assessment, and Health Premium Assessment, please contact our tax analysts by email (preferred) or phone: