1366, Insurance Company Annual Return for SBT and Retaliatory Tax - michigan-2025

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Federal law gives insurance companies the right to ask for your federal tax returns. However, some states protect their state-level tax returns from this kind of disclosure. Turning over other forms of financial information will depend on the language in your insurance policy, and in any authorization you sign.
Underwriters frequently request financial statements when they provide both new business and renewal quotations.
The premiums tax is calculated at 1.25% of gross direct premiums written on property or risk located in Michigan. Insurance companies are permitted certain exclusions from the tax base and a limited number of insurance-specific credits.
While many people have the gut reaction that this type of request is improper, as the article notes, there is arguably nothing legally that limits employers from asking for this information. Of course, the improper use of this information could result in liability for the employer who obtains the information.
You can authorize your tax preparer, a friend, a family member, or any other person you choose to receive oral disclosure during a conversation with the IRS.
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A retaliatory tax One of the schedules in the gross premiums tax return is used for the computation of retaliatory tax, owed when an insurance company is domiciled in another state which imposes higher taxes and fees on a California-domiciled insurer for the same business.

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