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Tax News
Systemic Issue Update

Doing Business as an Insurance Company?

We received this issue through our Systemic Issue Management System. In our effort to share the progress and changes we have made from your comments and suggestions, we periodically will provide your submission and the resolution.

Systemic Issue Submission:

What procedures are in place when we get information that the corporation is doing business as an insurance company?

Research and Resolution:

Corporations that are doing business in California and are registered with the Department of Insurance and have received a Certificate of Authority should not be required to file a tax return with us. We do not receive information from the Department of Insurance or any other source showing the Certificate of Authority and therefore our systems see these entities as regular corporations with a filing requirement.

We contacted the Department of Insurance to obtain the information annually, before we start our nonfiler process for a given tax year. They committed to provide us an annual listing of companies who have been issued a Certificate of Authority so we can proactively code these entities to eliminate the nonfiler notices for them.

Back to November 2010 Tax News