DRS: AN 2015(1), Assessments Refunded by the Connecticut Insurance Guaranty Association

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 
 
AN 2015(1)

Assessments Refunded by the Connecticut

Insurance Guaranty Association


Purpose: This Announcement informs each insurer that is a member (member insurer) of the Connecticut Insurance Guaranty Association (CIGA) that on or before February 19, 2015, the member insurer must pay a portion of their recently refunded assessments, as described in this Announcement, to the Department of Revenue Services (DRS).

 

 

Effective Date: Upon issuance.

 

 

Statutory Authority: Conn. Gen. Stat. §38a-841(c)(1).

 

 

Payment by Member Insurers Required On or Before February 19, 2015: On or about January 5, 2015, CIGA mailed to member insurers an Assessment Statement with a January 1, 2015, Assessment Date (January 1, 2015, Assessment Statement) and refunded to its member insurers a portion of prior CIGA assessments made to meet CIGA’s obligations with respect to PHICO Insurance Company (2002 base year). For Connecticut insurance premiums tax purposes, a CIGA assessment paid by a member insurer during a calendar year beginning on or after January 1, 2000, is permitted to be offset against the member insurer’s Connecticut insurance premiums tax liability for the five calendar years following the calendar year during which the CIGA assessment was paid (with 20% of the assessment permitted to be offset in each of those five calendar years) provided that if a CIGA assessment paid during a calendar year beginning on or after January 1, 2000, is refunded to a member insurer, the member insurer is required to pay the amount of the refunded assessment to DRS.

Each member insurer is required to pay to DRS the total amount entered in the row for PHICO Insurance Company for the 2002 base year under the column headed Amount Payable on the January 1, 2015, Assessment Statement.

The prior CIGA assessments made to meet CIGA’s obligations with respect to Midland Insurance Company (1987 base year) and Integrity Insurance Company (1986 and 1987 base year) were payable by a member insurer during a calendar year beginning prior to January 1, 2000. For Connecticut insurance premiums tax purposes, CIGA assessments paid by a member insurer during calendar years beginning prior to January 1, 2000, were not permitted to be offset against the member insurer’s Connecticut insurance premiums tax liability. Therefore, no amount of the assessments shown on the January 1, 2015, Assessment Statement as refundable to the member insurer with respect to Midland Insurance Company (1987 base year) and Integrity Insurance Company (1986 and 1987 base year) is required to be paid to DRS.

 

 

Member Insurers That Did Not Offset Any Portion of an Original Assessment: If a member insurer did not offset any portion of an original assessment by CIGA with respect to PHICO Insurance Company (2002 base year) against its Connecticut insurance premiums tax liability for any calendar year, the member insurer must notify the DRS in writing, to the address below:

Attn: Eloise Perry, Public Services

Department of Revenue Services

25 Sigourney St Ste 2

Hartford CT 06106-5032

Failure to provide written notification to the DRS may result in an assessment being issued.

 

 

Payment Due Date: Payment is due to DRS on or before the 45th day after the date of mailing of the January 1, 2015, Assessment Statement.

If the amount that a member insurer is required to pay to DRS is not paid on or before Thursday, February 19, 2015, interest will accrue on the amount not paid at the rate of 1% per month or fraction of a month from Thursday, February 19, 2015.

Make your check payable to Commissioner of Revenue Services. DRS may submit your check to your bank electronically.

To insure the proper crediting of your payment:

  • The member insurer’s Connecticut Tax Registration Number and “Refunded Assessment” must be written in the lower left corner of the check;
  • A copy of the member insurer’s January 1, 2015, Assessment Statement must be enclosed with the payment; and
  • Payment must be sent to:

Attn: Eloise Perry, Public Services

Department of Revenue Services

25 Sigourney St Ste 2

Hartford CT 06106-5032

 

 

Effect on Other Documents: None.

 

 

Effect of This Document: Announcements alert taxpayers to new developments (other than newly enacted or amended Connecticut or federal laws or newly released judicial decisions), including new administrative positions, policies, or practices.

 

 

For More Information Regarding Refunded CIGA Assessments: Call the DRS Public Services Unit at 860-541-3225 Monday through Friday between 8:30 a.m. and 4:30 p.m.

 

 

For Other Information: Call DRS during business hours, Monday through Friday:

  • 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only); or
  • 860-297-5962 (from anywhere).

TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.


Forms and Publications: Visit the DRS website at www.ct.gov/DRS to download and print Connecticut tax forms and publications.

 

 

Paperless Filing/Payment Methods (fast, easy, free, and confidential): Taxpayers can use the Taxpayer Service Center (TSC) at www.ct.gov/TSC to file a variety of tax returns, update account information, and make payments online.

File Electronically: Follow the prompts to log into the TSC to file returns and pay taxes.


Pay Electronically: Use the TSC to make payments for most Connecticut taxes, even ones that cannot be filed electronically.

 

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AN 2015(1)
Insurance Premiums Tax
CIGA
Issued: 01/07/2015