What IRS Form 1120-PC (2019) Is For

Form 1120-PC (2019) is the U.S. Property and Casualty Insurance Company Income Tax Return used to report income tax liability, taxable investment income, and deductions for non-life insurance companies. Every domestic corporation and foreign corporation engaged in an insurance business that qualifies under section 831 must file this return. This includes casualty insurance companies, life insurance companies with separate lines of commercial-type insurance, and organizations under sections 501(m)(1) and 833. The return captures gross receipts, interest income, capital gain net income, and other taxable income for the corporation’s tax year.

When You’d Use Form 1120-PC for 2019 (Late or Amended Filing)

If you discover errors, receive an IRS notice for unpaid tax, or need to adjust taxable income, you must file a late or amended 2019 corporate income tax return using Form 1120-PC. This form applies when claiming overpaid federal, foreign, or general business credits. The 2019 tax year generally covered January 1 through December 31, 2019. If extended, the filing deadline was April 15, 2020, or October 15, 2020. Refund claims under the Internal Revenue Code must be submitted within three years of the original due date.

Key Rules Specific to 2019

Several provisions in the 2019 tax year affected the way insurance companies reported net income and deductions:

• The minimum penalty for late filing was increased to the lesser of the tax due or $435 for returns filed more than 60 days after the due date. This affected corporations with unpaid tax or estimated taxes due.
  
  
• Companies must make all deposits through the Electronic Federal Tax Payment System (EFTPS) for corporate income tax purposes.
  
  
• Disaster relief rules temporarily suspended the 10% limitation on charitable deductions for qualified disaster contributions.
  
  
• New reporting requirements were introduced for foreign corporations' international activities, including Forms 8991, 8992, and 8993.
  
  
• Schedule applies to personal holding companies reporting dividends received, taxable interest, or gross rents.
  
  
• Corporations filing a life and non-life consolidated return needed to reconcile medical loss ratio, unearned premiums, and abnormal insurance losses in their annual statement.
  
  

Step-by-Step (High Level)

Step 1: Gather Transcripts and Records

To verify previous filings, get IRS transcripts using Form 4506-T or your business online account. Check your company's NAIC annual statement, balance sheets, and retained earnings schedules. These records show your corporation's tax year assets, gross income, and wages.

Step 2: Complete the Correct-Year Form

IRS Form 1120-PC (2019) is official. Report investment income, capital assets sold, taxable income, and deductions accurately. Include capital gains, net capital loss, taxable interest, and dividend deductions. Complete all lines and Schedules C, D, and PH for tax and reporting purposes.

Step 3: Attach Required Schedules

Attach all supporting schedules in the order prescribed by the IRS instructions. This includes the NAIC annual statement, Schedule D for capital assets, and detailed reconciliation statements. Include all forms for the foreign corporation, controlled group disclosures, and bond credits where applicable.

Step 4: File Properly

File your 2019 income tax return for your insurance company by mailing it to the Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0012. You may e-file if supported by your software provider. Retain your NAIC statement and all supplemental schedules in your tax records for IRS verification. Ensure an authorized corporate officer signs the return with a valid employer identification number.

Step 5: Keep Copies

Retain copies of your full return, including your annual statement, for at least three years after filing. These documents are essential if the IRS requests verification or questions your insurance company’s taxable income or deductions from the preceding tax year.

Common Mistakes and How to Avoid Them

• Missing NAIC annual statement: Always attach your NAIC yearly statement, which provides a detailed breakdown of unearned premiums, losses incurred, and other taxable income.
  
  
• Incomplete entries: Do not leave required lines blank. For insurance company returns, all fields must reflect actual figures or “0” if not applicable.
  
  
• Wrong filing address: Use your main business address for filing, not your registered agent’s.
  
  
• Incorrect schedule order: When attaching schedules, follow the order of attaching schedules (Schedules N, D, and O, then Forms 8991, 8992, and 8993).
  
  
• Unsigned returns: Only a duly authorized corporate officer may sign the return; otherwise, it will be considered incomplete.
  
  
• Omitting reconciliation: If not filing Schedule M-3, include a statement reconciling your NAIC annual statement with your Form 1120-PC.
  
  

What Happens After You File

The IRS processes business returns in 6–8 weeks for paper returns and 2–4 weeks for electronic returns. Filing late or amended may take longer. You will receive confirmation or a balance due notice. Interest begins accruing from the due date if tax is due, and the IRS may charge an estimated tax penalty. Form 9465 allows businesses with balances up to $25,000 to request an installment agreement. If your IRS records differ from your reported income, the IRS will also investigate.

FAQs

Can I e-file my IRS Form 1120-PC (2019) P&C Insurance Tax Return?

You can e-file your IRS Form 1120-PC (2019) P&C Insurance Tax Return through an authorized IRS e-file provider. If e-filing isn’t available, mail your Form 1120-PC to the Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0012. Always include your employer identification number and retain your NAIC annual statement for tax purposes.

What penalties apply to my Form 1120-PC if my casualty insurance company files late?

For casualty insurance company income filings, late penalties equal 5% per month of unpaid tax, up to 25%. If filed more than 60 days late, the minimum penalty is $435 or the total tax due—whichever is smaller. Additional penalties apply for failure to pay, late estimated taxes, or inaccurate capital gains reporting.

How can a corporation get transcripts for its Form 1120-PC or 1120 PC consolidated return?

Corporations can obtain transcripts using Form 4506-T, through their IRS online business account, or by contacting the IRS Business and Specialty Tax Line. Transcripts display reported income, deductions, capital losses, and dividend received deduction information from your corporation’s tax year, whether filed on a standalone or consolidated return.

Can a casualty insurance company still claim refunds for the IRS Form 1120-PC (2019) P&C Insurance Tax Return?

Casualty insurance companies can claim refunds within three years of filing the IRS Form 1120-PC (2019) P&C Insurance Tax Return under IRC Section 6511. Attach proof of overpayment, foreign tax credits, or misapplied estimated taxes. No penalty applies if no balance is due at the time of filing.

Should I amend state insurance company returns after filing my Form 1120?

If you amend your Form 1120 or Form 1120-PC due to capital gains, dividends received, deduction adjustments, or controlled group allocations, you must also amend state returns. Most state tax agencies require matching corrections for consolidated return filers to maintain consistent reporting.