Form 1120-L (2023)

What Is Form 1120-L

Form 1120-L is one facet of the suite of forms used by the Internal Revenue Service (IRS) specifically designed for life insurance companies to report their annual income and expenses. This form allows such entities to calculate their taxable income and any taxes due or overpayments that need to be refunded. Life insurance companies must consider a unique set of financial circumstances and regulations, which is why this specialized form is crucial for their tax reporting obligations.

When to use IRS form 1120-L

IRS Form 1120-L is applicable under several situations, most notably:

• The company is a life insurance company per the Internal Revenue Code definitions.
• The entity is liable for federal taxes and must report income and deductions.
• The life insurance company has taxable income adjustments tied to the insurance industry.

Life insurance companies operating in the United States use this form to comply with federal regulations, regardless of their size or the complexity of their financial activities.

How To Fill Out California Form L 1120

Filling out California Form L 1120 requires a careful approach, as life insurance companies need to ensure the accuracy of their reported figures. Here's a step-by-step guide to completing the form:

Company Information:

Enter the insurance company's complete name, Employer Identification Number (EIN), and address.

Income Statement:

Next, report the total income, including premiums, interest, and other sources of revenue. Deduct returns and allowances to calculate the gross income.

Deductions:

List all applicable deductions, such as return premiums, operating expenses, and taxes.

Balance Sheets:

Input the company's assets and liabilities in the corresponding balance sheet sections.

Tax Computation:

Use Schedule G to calculate the tax on investment income, taking care to apply any applicable rebates for the tax year.

Additional Schedules:

Complete any other schedules necessary, such as Schedule E for deferred and uncollected premiums or Schedule F for policyholder dividends.

Insurance companies must be thorough in this process, ensuring that each financial activity is reported in the appropriate section to maintain compliance with tax laws.

When to file form 1120-L

Form 1120-L typically should be filed by the 15th day of the fourth month following the end of the company's tax year. For most insurance companies operating on a calendar year basis, the form must be submitted by April 15 of the following year. Ensure all necessary information is prepared before the deadline to avoid late filing penalties.

It's important to note that if the due date falls on a Saturday, Sunday, or legal holiday, the form is due on the next business day. If additional time is needed, companies can request a six-month extension by filing Form 7004 before the original due date of Form 1120-L.