What IRS Form 1120-PC (2023) Is For
IRS Form 1120-PC (2023) to report their corporate income tax obligations to the Internal Revenue Service. It is the official income tax return for nonlife insurance companies, ensuring that all taxable income, deductions, and credits are accurately disclosed.
This form applies to insurance providers that handle commercial-type insurance, captive insurance companies, and certain foreign corporations under Section 831 of the Internal Revenue Code for targeted tax solutions. In contrast, life insurance companies file Form 1120-L. This return focuses on the operational and investment income that defines a company’s overall taxable income and income tax liability.
Form 1120-PC also helps align financial reporting between insurers and the government. The NAIC annual statement must be attached and consistent with the company’s reported figures. Submitting accurate data prevents discrepancies that could lead to penalties, audits, or interest charges for unpaid tax, and helps confirm compliance with annual reporting requirements.
When You’d Use IRS Form 1120-PC (2023)
You’d file IRS Form 1120-PC (2023) if your business qualifies as a property and casualty insurance company for the 2023 tax year. The return is generally due on the 15th day of the fourth month after the end of the corporation’s tax year, unless an extension is filed.
Companies must also use this form when submitting late filings or amended returns. Late filing may occur if you missed the original due date, discovered reporting errors, or received an Internal Revenue Service notice requiring correction.
Failure to file or pay on time can lead to serious consequences. The IRS may impose a 5% penalty per month on unpaid taxes, up to a maximum of 25%, and an estimated tax penalty if quarterly payments are missed. Even if payment isn’t impossible, filing early helps reduce penalties and establishes timely compliance under federal reporting requirements.
Key Rules or Details for the 2023 Tax Year
- The minimum late filing penalty for 2023 returns filed in 2024 is $485 or the total unpaid tax, whichever is less, as set by the Internal Revenue Service.
- The temporary 100% business meal deduction expired at the end of 2022, meaning only 50% of meal expenses are deductible for the 2023 tax year.
- The new Corporate Alternative Minimum Tax (CAMT) applies to large corporations with an average annual income exceeding $1 billion; reporting is required on Form 4626 G.
- The IRS waived CAMT estimated tax penalties for 2023 if companies met all reporting requirements and filed accurate disclosures.
- All estimated tax payments must be made electronically using the Electronic Federal Tax Payment System (EFTPS) to ensure timely processing and avoid late penalties.
- Insurance companies must attach the NAIC annual statement to support taxable income calculations and confirm alignment with financial reports.
- Refund claims for amended 2023 filings are valid for up to three years from the original due date, ensuring eligibility for recovery of overpayment.
Step-by-Step (High-level)
- Gather tax information and documents: Collect your prior-year tax returns, IRS transcripts, NAIC annual statement, and all supporting records showing investment income, losses incurred, and deductions claimed during the 2023 tax year.
- Use the correct version of the form and instructions: To avoid errors or omissions, ensure you’re filing the official IRS form along with the latest instructions.
- Complete all required schedules: Fill out Schedules A–I, including Schedule E for unearned premiums and Schedule F for losses incurred, to fully report taxable income and investment income.
- Calculate taxable income and credits accurately: Include capital gains, dividends received deduction, and all qualified deductions when performing your tax computation to determine final income tax liability.
- File and pay through the correct method: Submit the return electronically via IRS e-file or mail it to the Department of the Treasury at the following address in Ogden, UT, as stated in the instructions.
- Keep detailed records for compliance: Retain your annual statement, payment confirmations, and any correspondence with the Internal Revenue Service for at least three years, or six for complex insurance company income tax filings.
Common Mistakes and How to Avoid Them
- Filing the wrong tax year version: Always download the correct Form 1120-PC for the applicable tax year directly from the IRS website to avoid rejection or delays.
- Entering incorrect figures in schedules: Double-check all entries in Schedules E and F against financial statements to ensure accurate taxable income reporting.
- Forgetting to attach the NAIC annual statement: Include the NAIC annual statement with your return to verify reported financial data and maintain compliance.
- Submitting without an authorized signature: Ensure an authorized corporate officer signs the return before submission to validate the filing.
- Paying through incorrect methods: To prevent misapplied funds and late penalties, use the Electronic Federal Tax Payment System (EFTPS) for all payments.
- Overlooking CAMT reporting: Review Corporate Alternative Minimum Tax (CAMT) requirements before filing to ensure proper disclosure and avoid additional assessments.
What Happens After You File
Once submitted, the Internal Revenue Service typically processes Form 1120-PC (2023) within eight to twelve weeks. More complex filings from insurance companies or those with significant investment income or multiple schedules may take up to sixteen weeks. Companies that e-file typically receive faster confirmation of acceptance, whereas paper submissions undergo a slower manual review process.
If the IRS identifies any discrepancies, it will send a written notice outlining the corrections or balance due. Interest and penalties continue to accrue on unpaid tax until the full amount is paid. Businesses unable to pay immediately can request a payment plan using Form 9465, which helps prevent enforced collection actions and additional costs.
You can read more about simplifying federal tax filing through our IRS Form Help Center.
FAQs
Can I file Form 1120-PC (2023) late in 2025?
You can file late at any time, though penalties and interest apply until complete payment is made with an unfiled state return. Filing stops additional late fees and initiates the three-year review period for IRS eligibility and refund processing.
What happens if I miss the filing deadline?
The Internal Revenue Service charges a 5% monthly penalty on unpaid tax, up to 25%, plus a minimum of $485 if the payment is more than 60 days late. Interest continues to accumulate until the balance is paid in full.
How can I request my IRS transcripts to prepare my return?
You can get transcripts at irs.gov/transcripts or by calling 800-908-9946. They show prior tax forms, estimated payments, and account adjustments, helping ensure accuracy when completing a late or amended Form 1120-PC.
Do I need to file an amended state return after filing an amended federal return?
Yes, if your federal taxable income changes. Most states use federal figures to calculate insurance company income tax, so amended federal returns often require updated state filings.
What if I can’t pay the full amount I owe right now?
File anyway to avoid extra failure-to-file penalties. Then, Form 9465 can be used to request a payment plan, which reduces late charges and prevents enforcement actions such as liens or levies.
