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The Minnesota IG260 form serves as a crucial tool for surplus lines brokers, facilitating the reporting of nonadmitted insurance premium taxes. This semiannual tax return is mandatory for all brokers operating in Minnesota, regardless of whether they have any taxable activity during the reporting period. The form is divided into two primary sections: the first page captures general information such as the broker's name, license number, and tax ID, while the second page details specific transactions, including total premiums, fees, and commissions. Brokers must indicate the reporting period—either January 1 to June 30 or July 1 to December 31—along with due dates for submission. The IG260 also outlines the calculation of taxable gross premiums, which are subject to a tax rate of 3%. Additionally, it addresses penalties for late payments and filing, ensuring compliance with Minnesota tax laws. Understanding the nuances of this form is essential for brokers to avoid unnecessary penalties and ensure accurate reporting of their insurance activities.
Form Example
*226341*
2022 IG260, Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers
For the period of (check one):
Jan. 1 - June 30, 2022
(Due Aug. 15, 2022)
July 1 - Dec. 31, 2022
(Due Feb. 15, 2023)
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Check if: |
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Amended Return |
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No Activity Return |
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Name of Surplus Lines Broker |
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License Number |
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Date Licensed |
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Type |
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Agency Name |
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Check if New Address |
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Minnesota Tax ID |
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Mailing Address |
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Social Security Number (last 4 digits) |
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or |
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City |
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Zip Code |
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Contact Person |
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Email Address |
Website Address |
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Daytime Phone |
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Fax Number |
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Calculate the Amount Due/Overpaid
Sign Here
1 |
Total premiums (from page 2, column G) |
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2 |
Total fees and commissions (from page 2, column H) |
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3 |
Total gross premiums (from page 2, column I) |
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4 |
Total return premiums (from page 2, column J) . Enter as a positive number |
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5 |
Taxable gross premiums (subtract line 4 from line 3) |
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6 |
Tax rate is 3% (.03) |
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7 |
Total tax (multiply line 5 by line 6) |
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8 |
Penalty (see instructions) |
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9 |
Interest (see instructions) |
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10 |
TOTAL AMOUNT DUE or (overpaid) (add lines 7 through 9) |
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If you owe additional tax (make separate payments for each period): |
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Payment method: 
Electronic payment 
Check (payable to Minnesota Revenue; write MN tax ID number on check; attach voucher)
Enter amount paid |
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Date paid |
(If amount paid is different from amount due on line 10, attach an explanation.)
If you overpaid: overpayments will be refunded.
I declare that this return is correct and complete to the best of my knowledge and belief.
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Signature of Broker |
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Date |
Daytime Phone |
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I authorize the Minnesota |
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Department of Revenue |
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to discuss this tax return |
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Signature of Preparer |
Print Name of Preparer |
Date |
Daytime Phone |
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with the preparer. |
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Mail to: Minnesota Department of Revenue, Mail Station 1780, 600 N. Robert St., St. Paul, MN
(Rev. 9/21)
IG260
page 2
2022 Nonadmitted Insurance Premium Tax Return for Surplus Lines Brokers (continued)
A |
B |
C |
D |
E |
F |
G |
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H |
I |
J |
NAIC |
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Effective Date |
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Trans |
Total |
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All Fees/ |
Total Gross |
Return |
Number |
Name of Insurer |
Policy Number |
(required) |
Name of Insured |
Type* |
Premiums |
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Commissions |
Premiums (G + H) |
Premiums |
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* See “Page 2, Column instructions” for a list of codes to enter in |
Subtotal (if more than one page) |
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column F. |
Total. (Enter on appropriate lines on page 1) . . . . |
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2022 Form IG260 Instructions
For insurance tax laws, see Minnesota Statutes, Chapter 297I at www.leg.state.mn.us.
All surplus lines brokers that write or are authorized to write nonadmitted insurance must file Form IG260, Semiannual Statement of Surplus Lines Insurance, even if there is no activity or tax liability to report during the period. (M.S. 297I.05, subd. 7).
Filing Requirement
Effective July 21, 2011, the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA) permits only the insured’s home state to require the payment of premium tax for nonadmitted insurance.
When Minnesota is the home state of the insured, as provided under M.S. 297I.05, subd. 7, 100% of the gross premiums are taxable in Minnesota with no allocation of the tax to other states.
“Home state” means the state in which an insured maintains its principal place of business, or in the case of an individual, the individual’s principal residence.
However, if 100% of the insured risk is located outside Minnesota, then the insured’s home state is the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
Minnesota Tax ID Required
Surplus lines insurance brokers are required to have their own Minnesota tax ID number. This is not a Social Security number or agency Minnesota tax ID number.
If you don’t have a Minnesota tax ID, you can apply online. Go to our website at www.revenue.state.mn.us and click “Register for a Minnesota tax ID number” on the e‑Services menu. Note: During the process, be sure to select “Sole proprietor” as the type of legal organization. Use
NAICS classification number 524210.
If you don’t have access to the Internet, call 651‑282‑5225 or 1‑800‑657‑3605 to register by phone.
Due Dates
File Form IG260 with all required attachments and pay any tax due by:
•Aug. 15 (for the six‑month period ending June 30)
•Feb. 15 of the following year (for the six‑month period ending Dec. 31) This form must be filed even if no tax is due for the period.
The U.S. postmark date, or date recorded or marked by a designated delivery service, is considered the filing date (private postage meter marks are not valid). When the due date falls on a Saturday, Sunday or legal holiday, returns and payments electronically made or postmarked on the next business day are considered timely. When a return or payment is late, the date it is received at the Department of Revenue is treated as the date filed or paid.
Extension for Filing Return. If good cause exists, you may request a filing extension.
Rules for Using Spreadsheets
If you are using your own spreadsheet, you must include all the information and in the same format as on page 2 of Form IG260, including subtotals on each page. Your filing will not be considered complete if all information, including subtotals, is not included.
If you have more than two pages of surplus lines insurance, submit an electronic file in addition to the printout. The files must be in a Microsoft Excel format.
Payments
Electronic Payments
If your total insurance taxes and surcharges for the last 12‑month period ending June 30 is $10,000 or more, you are required to pay your tax electronically in all subsequent years.
You must also pay electronically if you’re required to pay any Minnesota business tax electronically, such as withholding tax.
To pay over the Internet, go to the department’s website at www.revenue.state.mn.us and login. You’ll need your user name, password and bank routing and account numbers. When paying electronically, you must use an account that is not associated with any foreign banks.
If you use other electronic payment methods, such as ACH credit method or Fed Wire, instructions are available on our website or by calling our Business Registration Office at 651‑282‑5225 or 1‑800‑657‑3605.
Submit separate payments for each return.
Continued 1
2022 Form IG260 Instructions (continued)
Check Payments
If you’re not required to pay electronically and are paying by check, visit our website at www.revenue.state.mn.us and click on “Make a Payment” and then “By check” to create a voucher. Print and mail the voucher with a check made payable to Minnesota Revenue.
When you pay by check, your check authorizes us to make a one‑time electronic fund transfer from your account, and you may not receive your canceled check.
How to Complete the Form
Complete page 2 before page 1 of Form IG260.
Page 2, Column Instructions
A. NAIC Number
Enter the NAIC number.
B. Name of Insurer
List the insurers. Include policies for insurance companies without NAIC numbers.
C. Policy Number
The policy number (modified by the month and year that the policy was issued) is the controlling number for reporting surplus lines policies and any subsequent activity during the policy period, i.e., endorsements, audits and/or cancellations.
D. Effective Date (required)
Enter the effective date of the transaction.
E. Name of Insured
Provide the name of the insured.
F. Policy Transaction Type
Enter one of the following numbers:
1= New business 4 = Audit
2 = Renewal |
5 = Reinstatement |
3= Cancellation 6 = Endorsement
G. Total Premiums
Include all premiums paid by companies with a home state of Minnesota for risks located in the United States and U.S. territories.
H. Total Fees and Commissions (excluding stamping fee)
Include all fees and commissions paid by policyholder to obtain coverage that are not included in premiums.
I. Total Gross Premiums
Total premiums and all fees and commissions (column G plus column H).
J. Return Premiums
Enter all return premiums. Include a note indicating on which return the original policy was reported. Return premiums can only be claimed by the broker where the premiums and taxes were originally reported.
Page 1, Line Instructions
Check Boxes
At the top of the form, check if the return is:
•an Amended Return: Check only if you are amending a previously filed return for the same period. Include all original and corrected policies on the amended return.
•a No Activity Return: Check only if you did not have any activity during the period.
Line 4 — Total Return Premiums
Enter all return premiums as a positive number.
Line 5 — Taxable Gross Premiums
Gross premiums include fees and commissions.
Line 8 — Penalty
Late Payment. If you don’t pay all the tax due by the due date, a late payment penalty is due. The penalty is 5% of the unpaid tax for any part of the first 30 days the payment is late, and 5% for each additional 30‑day period, up to a maximum of 15%.
Continued 2
2022 Form IG260 Instructions (continued)
Late Filing. Add a late filing penalty to the late payment penalty if your return is not filed by the due date. The penalty is 5% of the unpaid tax. When added to the late payment penalty, the maximum combined penalty is 20%.
Payment Method. If you are required to pay electronically and do not, an additional 5% penalty applies to payments not made electronically, even if a paper check is sent on time.
Line 9 — Interest
You must pay interest on the unpaid tax plus penalty from the due date until the total is paid. The interest rate for calendar year 2022 is 3%. The interest rate may change for future years.
To figure how much interest you owe, use the following formula with the appropriate interest rate:
Interest = (tax + penalty) × # of days late × interest rate ÷ 365
Business Information Changes
Be sure to let us know within 30 days if you change mailing addresses, phone numbers, or any other business information. To do so, go to our website, login to e‑Services and update your profile information. By notifying us, we will be able to let you know of any changes in Minnesota tax laws and filing requirements.
Information and Assistance
Website: www.revenue.state.mn.us
Email: insurance.taxes@state.mn.us
Phone: 651‑556‑3024
This material is available in alternate formats.
For questions about licensing and regulations, contact the Minnesota Department of Commerce:
Website: www.mn.gov/commerce
Email: licensing.commerce@state.mn.us
Phone: 651‑539‑1599 or 1‑800‑657‑3978
Fax: 651‑539‑0107
For questions about stamping fees, contact the Surplus Lines Association of Minnesota (SLAM):
Website: www.mnsla.com
Email: nschroeder@mnsla.com
Phone: 320‑679‑4244
3
Form Specifications
| Fact Name | Details |
|---|---|
| Form Purpose | The IG260 form is used for reporting the Nonadmitted Insurance Premium Tax for Surplus Lines Brokers in Minnesota. |
| Filing Requirement | All surplus lines brokers must file Form IG260, regardless of whether there is any tax liability or activity to report. |
| Due Dates | The form is due on August 15 for the period ending June 30 and February 15 for the period ending December 31. |
| Tax Rate | The tax rate for nonadmitted insurance premiums in Minnesota is set at 3%. |
| Governing Law | This form is governed by Minnesota Statutes, Chapter 297I, which outlines the laws for insurance premium taxes. |
| Electronic Payments | If total insurance taxes exceed $10,000 in a 12-month period, electronic payment is mandatory for subsequent years. |
| Amended Returns | Brokers can check a box to indicate if they are submitting an amended return for the same period. |
| Tax ID Requirement | Surplus lines brokers must possess a Minnesota Tax ID number, which is separate from a Social Security number. |
| Penalties for Late Filing | Late filing incurs a penalty of 5% of unpaid tax for the first 30 days, increasing with additional delays, up to a maximum of 20%. |
| Contact Information | For assistance, brokers can contact the Minnesota Department of Revenue at 651-556-3024 or via their website. |
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