What penalties could be assessed in association with premium tax returns?
The Commissioner is empowered to assess penalties for various reasons, but the most common penalty associated with premium tax filings is the Late or Incomplete Filing Penalty. If any broker fails to file tax reports or fails to remit the tax prior to the 1st day of April after the tax is due, the broker is liable for a fine of $25 for each day of delinquency commencing with the 1st day of April. This is a minimum penalty. Further penalties and disciplinary action may be taken, up to and including suspension of the surplus lines broker’s license.
