File your Foreign Insurance Excise Tax
Online in 2 minutes with the IRS Authorized FET Portal!
- No Software Download
- No License / Contracts
What is Foreign Insurance Excise Tax?
The Foreign Insurance Excise Tax comes underSection 4371 applies to premiums paid on insurance, annuity, and reinsurance policies issued by foreign insurers for U.S. risks. It's levied to ensure parity between foreign and domestic insurance providers.
The tax rates vary by policy type: 4% (4¢ per dollar) on casualty insurance and indemnity bonds, and 1% (1¢ per dollar) on life, sickness, accident insurance, annuity contracts, and reinsurance premiums.
Who pays the Foreign Insurance Excise Tax?
Under I.R.C. § 4374 the tax may be imposed on any of the following persons:
- The insured, sometimes referred to as the beneficiary,
- The policyholder, if that person is someone other than the insured,
- The insurance company, or
- The broker obtained the insurance.
Why Should You File the Foreign Insurance Excise Tax Online Instead of Using Paper Filing?
Faster IRS Acknowledgment
E-filing ensures that your Form 720 for Foreign Insurance Excise Tax is received and processed more quickly than traditional mail, helping you avoid late penalties and stay compliant.
Built-in Compliance Checks
Online portals offer real-time validation features that help prevent errors in tax rates, policy types, and EIN entries—reducing the chances of IRS rejections.
Easier Access to Filing History
With an online account, you can easily view, track, and retrieve past filings—useful for audits, amendments, or internal reviews.
Global Convenience
For international companies or brokers filing from outside the U.S., e-filing provides 24/7 access with no need to worry about shipping delays, customs, or U.S. postal deadlines.
Just a few steps to complete your
Foreign Insurance Excise Tax Filing Online with Simple720
STEP 1
Enter Business Details
Provide key information about your business, including the name, address, phone number, and Employer Identification Number (EIN).
STEP 2
Tax Information
Navigate to the “Foreign Insurance Tax” and select “Policies Issued by Foreign Issuers.” Select the type of event, tax date, and enter the premium amount.
STEP 3
Payment Information
Fill in your preferred payment method and review the tax fee amount before completing the transaction.
Why Choose Simple720 for Filing
Your Foreign Insurance Excise Tax?
Auto-Calculation of Applicable Tax Rates
The platform automatically calculates the correct excise tax (1% or 4%) based on your insurance type, reducing the risk of miscalculations and ensuring accuracy in your Form 720 submission.
Secure and Compliant Cross-Border Filing
Whether you're a U.S. business paying foreign insurers or an international filer, Simple720 provides a secure and IRS-compliant e-filing experience, with encryption and safeguards tailored for cross-border tax reporting.
No Software Download Required
With Simple720, there's no need to install any software, everything runs securely in the cloud. You can access the platform from any device with an internet connection. This eliminates compatibility issues, saves storage space, and ensures you're always using the latest version without manual updates.
Simple720 Vs Others
| IRS Authorized e-Filer |  |
Brand X | Brand Y | Brand Z |
|---|---|---|---|---|
| Cloud-Based | Yes | No | No | No |
| Software Download | None | Yes-PC Only | Yes | Yes |
| License | None | Required | Required | Required |
| Annual Contract | No | Required | Required | Required |
| All Excise Taxes | Yes | Fuel Taxes Only | No | No |
| Cost | $50/return | $1,000+/yr. | $1,500+/yr. | $5,000+/yr. |
What Our Customers Say?
- A Happy Client from Texas
Instant IRS Confirmation!
Simple720 gave me instant IRS acknowledgment right after submitting my Form 720. That quick confirmation gave me peace of mind and saved me from the uncertainty of paper filing.
- A Client from Miami
Great Support Team!
I had a question about selecting the right tax category, and their support team responded promptly with clear guidance. It’s reassuring to know real help is just a message away.
Frequently Asked Questions
Foreign life, sickness, accident insurance, and annuity contracts issued by foreign insurers covering U.S. risks are taxed at 1% of the premium paid, as reported on Form 720, Schedule 30 under Section 4371(2).
Certain policies may be exempt if they pass the Cash Value Accumulation Test or Guideline Premium Test, serve retirement plan coverage, or qualify under a U.S. income tax treaty with a valid IRS closing agreement per Rev. Proc. 2003-78.
Tax is reported quarterly via Form 720, you can file and pay online using an IRS-authorized portal like Simple720, which auto-calculates the 1% tax, allows electronic payment, and sends instant IRS confirmation. Paper filing is available but slower and more error-prone.
The excise tax on foreign life insurance premiums is imposed under Internal Revenue Code Section 4371, which specifies the 1% rate for life, sickness, accident, and annuity contracts.
Yes. Reinsurance premiums paid to foreign reinsurers for contracts covering life, sickness, accident, or casualty risks are also taxed at 1% under Section 4371(3) even for reinsurance between foreign entities unless treaty exemptions apply.
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