63-20P: Premium Excise Return for Life Insurance Companies (2024)

Who files this form

Form 63-20P is the Massachusetts Premium Excise Return for Life Insurance Companies for calendar year 2024. It includes separate calculations for domestic and foreign life insurers.

What you'll need

• Schedule T of the NAIC annual statement: Both domestic and foreign life insurers must include a copy.
• Premium and dividend records: Gather the amounts needed for the applicable life, accident and health insurance calculations. Domestic insurers also report the net value of policies.
• Returned-premium schedule: Include a supporting schedule if reporting returned premiums. Part 2 requires an itemized schedule.
• Credit schedules and calculations, if applicable: Include the Credit Recapture Schedule for credit recapture and the computation for the Massachusetts Capital Resource Company investment credit on line 16. Other credits and refundable credits come from the Credit Manager Schedule.
• Payment information: Have the amounts for prior-year overpayments applied to 2024, estimated tax payments, extension payments and applicable withholding. For an amended return, also have the payment made with the original return.
• Company information: Have the federal identification number, state of incorporation, contact information, treasurer’s name and employee counts for Massachusetts and worldwide.

How to file

File electronically. Paper returns will not be accepted.

For questions about electronic filing, call 617-887-6367. The form points to the DOR electronic filing and payment requirements and TIRs 16-9 and 21-9 for more information.

The return includes a declaration for an appropriate corporate officer to sign, stating that the return and enclosures are true, correct and complete.

Common mistakes

• Submitting a paper return: The form is e-file only.
• Claiming a credit twice: Do not claim a credit on this return if it was claimed on Form 63-23P.
• Double-counting a prior-year overpayment: Do not include the amount from line 23 in estimated tax payments on line 24.
• Using line 26 on an original return: This line is only for payments made with the original return when amending.
• Taking unsupported domestic premium deductions: Part 1 says to include only amounts reported as receipts on this return or a previous return.
• Deducting excluded amounts: Returned premiums must not include cash surrender values. Part 1 also says not to deduct premiums under company employees’ group plans for annuity consideration and retirement benefits.
• Entering a negative amount on line 20: Excise due before the voluntary contribution cannot be less than zero.

Questions people ask

Which premium calculation should the company use?

Part 1 is for domestic life insurers. Part 2 is for foreign life insurers. The foreign insurer calculation also uses the retaliatory tax computation in Part 3.

How is the retaliatory tax calculated?

Part 3 says to use the identical method and rate that the company’s state of incorporation would use to tax a like Massachusetts insurance company, or its agents, doing business to the same extent. If that computation is the same in every respect as the Massachusetts computation, provide a statement saying so.

Can an overpayment be applied to next year instead of refunded?

Yes. Line 31 lets the company enter the amount to credit to next year. Line 32 shows the amount to be refunded after subtracting that credit from the total overpayment.

Can DOR discuss the return with the paid preparer?

The form has a checkbox to authorize DOR to discuss the return with the paid preparer.

Is there an option to contribute to wildlife conservation?

Yes. Line 21 allows a voluntary contribution for endangered wildlife conservation. It is added to the excise on line 22.

Official sources

• https://www.mass.gov/lists/dor-tax-forms-and-instructions