FOREIGN INSURANCE EXCISE TAX - SECTION 4371/FORM 720

Very few taxpayers are aware of the US Foreign Insurance Excise Tax.  That excise tax is in general paid on premiums paid for foreign insurance on US insured risks (the individual insured or the insured items is located in the USA) including US Citizens and residents.  The types of insurance this excise insurance applies to includes life insurance, accident insurance, casualty insurance, and annuities.  The US has in its tax treaties an exemption from this tax with only a few countries.

This tax is paid  with form 720 which is normally filed quarterly.  Read more about this Foreign Insurance Excise Tax