Form 1120 L – Fill Out and Use This PDF

The Form 1120-L is designed specifically for U.S. life insurance companies to declare their income tax returns. As an integral IRS document, it meticulously accounts for a company's earnings, deductions, and payable taxes within a fiscal year, paved within specific guidelines by the Department of the Treasury. Navigating through its complex structure demands attention to detail to assure compliance and accuracy. For those prepared to tackle their tax obligations, clicking the button below simplifies the process, guiding you step-by-step through filling out the Form 1120-L.

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Form 1120 L PDF Details

The Form 1120-L serves as the U.S. Life Insurance Company Income Tax Return, a critical document for life insurance companies within the United States, mandated by the Department of the Treasury's Internal Revenue Service for the tax year 2021. It encompasses various aspects, including but not limited to, the reportage of gross premiums, adjustments in reserves, investment income, and details regarding policyholder dividends and taxable income. Furthermore, this form addresses the specialized deductions and credits applicable to the life insurance sector, alongside computations to determine the taxable income after factoring in policyholders' surplus accounts and total taxes due. It extensively covers the increase or decrease in reserves aligned with section 807, the deductions associated with policy acquisition expenses as per section 848, and a comprehensive tax computation tailored for life insurance entities. Additionally, the form provides a segment for detailing assets and liabilities, ensuring a holistic financial portrayal. Life insurance companies are required to provide meticulous detail across various schedules, reflecting their financial health and compliance with taxation regulation. The intricacies of Form 1120-L underscore the complex taxation framework life insurance companies navigate, making accurate filing paramount to adhere to federal tax obligations.

Question	Answer
Form Name	Form 1120 L
Form Length	5 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	1 min 15 sec
Other names	www.irs.govpubirs-pdf2021 Form 1120-L - IRS tax forms

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Form 1120-L					U.S. Life Insurance Company Income Tax Return												OMB No. 1545-0123
																	OMB No. 1545-0123
				For calendar year 2021 or tax year beginning						, 2021, ending			, 20
Department of the Treasury				For calendar year 2021 or tax year beginning						, 2021, ending			, 20				2021
																	2021

Internal Revenue Service					▶ Go to WWW.IRS.GOV/FORM1120L for instructions and the latest information.
A Check if:						Name								B	Employer identification number
1 Consolidated return				Please
	(attach Form 851)			print
	(attach Form 851)					Number, street, and room or suite no. If a P.O. box, see instructions.								C	Date incorporated
														C	Date incorporated
2 Life-nonlife				or
	consolidated return			type
3 Schedule M-3 (Form				type		City or town, state or province, country, and ZIP or foreign postal code								D Check applicable box if an
														D Check applicable box if an
															election has been made under
	1120-L) attached														election has been made under
	1120-L) attached														section(s):
															section(s):
E Check if:		(1)	Final return		(2)	Name change		(3)	Address change	(4)	Amended return						953(c)(3)(C)	953(d)
reserved)	1	Gross premiums, etc., less return premiums, etc. Enter balance											. . . .			1
reserved)	2	Net decrease, if any, in reserves (Schedule F, line 12)											. . . .		2
	2	Net decrease, if any, in reserves (Schedule F, line 12)											. . . .		2
6 is	3a	Decrease in reserves under section 807(f)											. . . .			3a
6 is	b	Income from Reserve Transition Relief (see instructions)											. . . .			3b
(line	4	Investment income (Schedule B, line 6) (see instructions)											. . . .			4
	4	Investment income (Schedule B, line 6) (see instructions)											. . . .			4
Income	5	Capital gain net income (Schedule D (Form 1120))											. . . .			5
	5	Capital gain net income (Schedule D (Form 1120))											. . . .			5
	7	Other income (attach statement)											. . . .			7
	8	Life insurance company gross income. Add lines 1 through 7											. . . .		8
deductions.)	9	Death benefits, etc											. . . .		9
deductions.)	b	Deduction from Reserve Transition Relief (see instructions)											. . . .			11b
	10	Net increase, if any, in reserves (Schedule F, line 12)											. . . .		10
	11a	Increase in reserves under section 807(f)											. . . .			11a
on		Deductible policyholder dividends under section 808											. . . .
on	12	Deductible policyholder dividends under section 808											. . . .		12
limitations	15a	Interest ▶					b Less tax-exempt interest expense			▶	. . . . . .		c Balance ▶			15c
	13	Assumption by another person of liabilities under insurance, etc., contracts									. . . . . .		. . . .		13
	14	Dividends reimbursable by taxpayer											. . . .		14
for
for	16	Deductible policy acquisition expenses (Schedule G, line 20)											. . . .			16
instructions	17	Reserved for future use											. . . .			17
	18	Other deductions (see instructions) (attach statement)											. . . .			18
	19	Add lines 9 through 18											. . . .			19
(See	20	Subtotal. Subtract line 19 from line 8											. . . .		20
(See	21a	Dividends-received and other special deductions (Schedule A, line 22) . .									. .	21a
Deductions		Plus: b. Net operating loss deduction (see instructions) (attach statement) .									. .	21b				21c
											. .	21b				21c
	22	Gain or (loss) from operations. Subtract line 21c from line 20											. . . .			22
	23	Life insurance company taxable income (LICTI). Enter line 22 here											. . . .			23
	24	Phased inclusion of balance of policyholders surplus account (see instructions)											. . . .		24

	25	Taxable income. Add lines 23 and 24 (see instructions)				. . . . . . . .				25
Payments	26	Total tax (Schedule K, line 10)				. . . . . . . .				26
	27	Reserved for future use				. . . . . . . .				27
	28a	2020 overpayment credited to 2021 . . .	. . .	28a			Line 28b is
	c	2021 estimated tax payments	. . .	28c			reserved.
and							reserved.

	d	Less 2021 refund applied for on Form 4466 .	. . .	28d (		)	28e
Credits,	f	Tax deposited with Form 7004					28f
	g	Credits: (1) Form 2439 ▶	(2) Form 4136 ▶				28g
	h	U.S. income tax paid or withheld at source (attach Form 1042-S)					28h
Refundable	h						28h
	i	Reserved for future use					28i
	j	Reserved for future use					28j			28k
	29	Estimated tax penalty. Check if Form 2220 is attached				.	. . . . .	▶		29

Tax,	30	Amount owed. If line 28k is smaller than the total of lines 26 and 29, enter amount owed								30
Tax,	31	Overpayment. If line 28k is larger than the total of lines 26 and 29, enter amount overpaid								31
	31									31
	32	Enter amount from line 31: Credited to 2022 estimated tax		.	▶		Refunded	.	▶	32

Sign Here

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

				May the IRS discuss this return
				with the preparer shown below?
				See instructions.	Yes	No
▲Signature of officer	Date	▲	Title	See instructions.	Yes	No
▲Signature of officer	Date	▲	Title

Paid	Print/Type preparer’s name	Preparer’s signature		Date		Check	if	PTIN
						Check	if
						self-employed
Preparer						self-employed

	Firm’s name ▶				Firm’s EIN ▶
Use Only	Firm’s name ▶				Firm’s EIN ▶
Use Only	Firm’s address ▶				Phone no.
For Paperwork Reduction Act Notice, see separate instructions.			Cat. No. 11480E					Form 1120-L (2021)

Form 1120-L (2021)Page 2

Schedule A Dividends, Inclusions, Dividends-Received Deduction, and Other Special Deductions (see instructions)

Dividends subject to proration

1Dividends from less-than-20%-owned domestic corporations (other than

debt-financed stock) . . . . . . . . . . . . . . . . .

2Dividends from 20%-or-more-owned domestic corporations (other than

debt-financed stock) . . . . . . . . . . . . . . . . .

3Dividends on certain debt-financed stock of domestic and foreign

corporations . . . . . . . . . . . . . . . . . . .

4Dividends on certain preferred stock of less-than-20%-owned public utilities

5Dividends on certain preferred stock of 20%-or-more-owned public utilities .

6Dividends from less-than-20%-owned foreign corporations and certain

foreign sales corporations (FSCs) . . . . . . . . . . . . .

7Dividends from 20%-or-more-owned foreign corporations and certain FSCs

8Dividends from wholly owned foreign subsidiaries and certain FSCs . . .

9	Dividends from certain affiliated companies
10	Gross dividends-received deduction. Add lines 1 through 9
11	Company share percentage
12	Prorated amount. Line 10 times line 11

	Dividends not subject to proration
13	Affiliated company dividends

14Foreign-source portion of dividends received from a specified 10%-owned

foreign corporation (excluding hybrid dividends) (see instructions)

. . .

15Dividends from foreign corporations not included on line 3, 6, 7, 8, or 14

(including hybrid dividends) . . . . . . . . . . . . . . .

16	Reserved for future use
17a	Subpart F inclusions derived from the sale by a controlled foreign
	corporation (CFC) of the stock of a lower-tier foreign corporation treated as
	a dividend (attach Form(s) 5471) (see instructions)

bSubpart F inclusions derived from hybrid dividends of tiered corporations

(attach Form(s) 5471) (see instructions)

. . . . . . . . . . .

cOther inclusions from CFCs under subpart F not included on line 17a, 17b,

or 18 (attach Form(s) 5471) (see instructions) . . . . . . . . . .

18Global intangible low-taxed income (GILTI) (attach Form(s) 5471 and 8992) .

19	Other corporate dividends

20Total dividends and inclusions. Add lines 1 through 19, column (a). Enter

here and on Schedule B, line 2 . . . . . . . . . . . . . .

21	Section 250 deduction (attach Form 8993)

22Total deductions. Add lines 12, 13, 14, 17a, and 21, column (c). Enter here and on page 1, line 21a . . . . . . . . . . . . . . . .

(a) Dividends and	(b) %	(c) Deductions
inclusions		((a) times (b))

1	50
2	65
3		SEE INSTRUCTIONS
4	23.3
5	26.7
6	50
7	65
8	100
9	100
10
11			0.7
12
13		SEE INSTRUCTIONS
14	100
15
16
17a	100
17b
17c
18
19
20
21
22


Schedule B		Investment Income (see instructions)
1	Interest (excluding tax-exempt interest)		1
2	Total dividends and inclusions (Schedule A, line 20, column (a))		2
3	Rents		3
4	Royalties		4
5	Leases, terminations, etc		5
6	Investment income. Add lines 1 through 5. Enter here and on page 1, line 4		6

Form 1120-L (2021)

Form 1120-L (2021)									Page 3

Schedule F		Increase (Decrease) in Reserves (section 807) (see instructions)
						(a)	Beginning		(b) End of tax year
						of tax year
	Life insurance reserves		. .
1	Life insurance reserves		. .		1
2	Unearned premiums and unpaid losses		. .		2
3	Supplementary contracts		. .		3
4	Dividend accumulations and other amounts		. .		4
5	Advance premiums		. .		5
6	Special contingency reserves		. .		6
7	Add lines 1 through 6		. .		7
8	Increase (decrease) in reserves under section 807. Subtract line 7, column (a), from line 7, column (b) . .						. .	8
9a	Tax-exempt interest			9a
b Increase in policy cash value of section 264(f) policies as defined in section 805(a)(4)(F)				9b
c	Add lines 9a and 9b			9c
10	Policyholders’ share percentage		. . .		. . .		. .	10	30%

11Policyholders’ share of tax-exempt interest and the increase in policy cash value of section 264(f) policies as

defined in section 805(a)(4)(F). Multiply line 9c by line 10

12Net increase (decrease) in reserves. Subtract line 11 from line 8. If an increase, enter here and on page 1,

line 10. If a decrease, enter here and on page 1, line 2

Schedule G Policy Acquisition Expenses (section 848) (see instructions)

(a) Annuity	(b) Group life	(c) Other
	insurance

Gross premiums and other consideration

2Return premiums and premiums and other consideration incurred for


	reinsurance	. . . . . . . . . . . . . . . . . .		2
3	Net premiums. Subtract line 2 from line 1			3
4	Net premium percentage (see instructions)			4
5	Multiply line 3 by line 4			5
6	Combine line 5, columns (a), (b), and (c), and enter here. If zero or less, enter -0- on lines 7 and 8						6
7	Unused balance of negative capitalization amount from prior years . . .			. . . .	. . . . . . .		7 (	)
8	Combine lines 6 and 7. If zero or less, enter -0-			. . . .	. . . . . . .		8
9	General deductions (attach statement)			. . . .	. . . . . . .		9
10	Enter the lesser of line 8 or line 9			. . . .	. . . . . . .		10
11	Deductible general deductions. Subtract line 10 from line 9. Enter here and include on page 1, line 18 . . . .						11
12	If the amount on line 6 is negative, enter it as a positive amount. If the amount on line 6 is positive, enter -0- . .						12
13	Unamortized specified policy acquisition expenses from prior years . . .			. . . .	. . . . . . .		13
14	Deductible negative capitalization amount. Enter the lesser of line 12 or line 13 . . . .				. . . . . . .		14
15a	Tentative 60-month specified policy acquisition expenses. Enter amount from line 10,
	but not more than $5 million			. . .	15a
b	Limitation			. . .	15b	$10,000,000
16	Phase-out amount. Subtract line 15b from line 10. If zero or less, enter -0- .			. . .	16
17a	Current year 60-month specified policy acquisition expenses. Subtract line 16 from line
	15a. If zero or less, enter -0-		. . . . . . . . . . . . . .	. . .	17a
b	Enter 10% (0.10) of line 17a			. . . .	. . . . . . .		17b
18a	Current year 180-month specified policy acquisition expenses. Subtract line 17a from
	line 10			. . .	18a
b	Enter 3.34% (0.0334) of line 18a			. . . .	. . . . . . .		18b

19Enter the applicable amount of amortization from specified policy acquisition expenses capitalized in prior years

	and deductible this year. Attach statement	19
20	Deductible policy acquisition expenses. Add lines 14, 17b, 18b, and 19. Enter here and on page 1, line 16 . .	20

Form 1120-L (2021)

Form 1120-L (2021)										Page 4

Schedule K		Tax Computation (see instructions)
1	Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120))					. .	. . . ▶
2	Income tax					. .	. . . . .		2
3	Base erosion minimum tax amount (attach Form 8991)					. .	. . . . .		3
4	Add lines 2 and 3					. .	. . . . .		4
5a	Foreign tax credit (attach Form 1118)					5a
b	Credit from Form 8834 (attach Form 8834)					5b
c	General business credit (attach Form 3800)					5c
d	Credit for prior year minimum tax (attach Form 8827)					5d
e	Bond credits from Form 8912					5e
6	Total credits. Add lines 5a through 5e					. .	. . . . .		6
7	Subtract line 6 from line 4					. .	. . . . .		7
8	Foreign corporations—tax on income not effectively connected with U.S. business . .					. .	. . . . .		8
9	Other taxes. Check if from:		Form 4255	Form 8611	Other (attach statement) .		. . . . .		9
10	Total tax. Add lines 7 through 9. Enter here and on page 1, line 26					. .	. . . . .		10
Schedule L		Part I—Total Assets (see instructions)
								(a) Beginning		(b) End of tax year
								of tax year
1	Real property					.
1	Real property					.	1
2	Stocks					.	2
3	Proportionate share of partnership and trust assets					.	3
4	Other assets (attach statement)					.	4
5	Total assets. Add lines 1 through 4					.	5

Part II—Total Assets and Total Insurance Liabilities (section 842(b)(2)(B)(i)) (see instructions)

Note: The information provided in Part II should conform with the “Assets” and “Liabilities, Surplus, and Other Funds” sections of the NAIC Annual Statement.

				(a) Beginning	(b) End of tax year
				of tax year
	Subtotals for assets
1	Subtotals for assets		1
2	Total assets		2
3	Reserve for life policies and contracts		3
4	Reserve for accident and health policies		4
5	Liability for deposit-type contracts		5
6	Life policy and contract claims		6
7	Accident and health policy and contract claims		7
8	Policyholder’s dividend and coupon accumulations		8
9	Premiums and annuity considerations received in advance less discount	. . . . . .	9
10	Surrender values on canceled policies		10
11	Part of other amounts payable on reinsurance assumed		11
12	Part of aggregate write-ins for liabilities. (Only include items or amounts includible in “total
	insurance liabilities on U.S. business” as defined in section 842(b)(2)(B)(i))		12
13	Separate accounts statement		13
14	Total insurance liabilities. Add lines 3 through 13		14

Form 1120-L (2021)

Form 1120-L (2021)		Page 5

Schedule M	Other Information (see instructions)

1Check accounting method:

a Accrual

b Other (specify) ▶

2Check if the corporation is a:

a Legal reserve company—if checked Kind of company:

(1) Stock

(2) Mutual

Principal business:

(1) Life insurance

(2) Health and accident insurance

b Fraternal or assessment association

c Burial or other insurance company

3Enter the percentage that the total of the corporation’s life insurance reserves (section 816(b)) plus unearned premiums and unpaid losses (whether or not ascertained) on noncancelable life, health, or accident policies not included in life insurance reserves bears to the corporation’s total

reserves (section 816(c)) . . ▶		%.
Attach a statement showing the computation.

4Does the corporation have any variable annuity

contracts outstanding? . . . . . . . .

5At the end of the tax year, did the corporation own, directly or indirectly, 50% or more of the voting stock of a domestic corporation? (For rules of

attribution, see section 267(c).) . . . . . .

If “Yes,” attach a statement showing (a) name and employer identification number (EIN), (b) percentage owned, and (c) taxable income or (loss) before NOL and special deductions of such corporation for the tax year ending with or within your tax year.

6Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? . . .

If “Yes,” enter name and EIN of the parent corporation. ▶

7At the end of the tax year, did any individual, partnership, corporation, estate, or trust own, directly or indirectly, 50% or more of the corporation’s voting stock? (For rules of attribution, see section 267(c).)

If “Yes,” complete a and b below.

aAttach a statement showing name and identifying number. (Do not include any information already entered on line 6 above.)

bEnter percentage owned. ▶

8At any time during the year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power of all classes of stock of the corporation entitled to vote, or (b) the total value of all classes of stock of the corporation? . . .

If “Yes,” enter:

a Percentage owned and ▶ b Owner’s country. ▶

Yes No

8c The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter number of Forms 5472 attached. ▶

9Does the corporation discount any of the loss reserves shown on its annual statement? . . .

10a Enter the total unpaid losses shown on the corporation’s annual statement:

(1)	For the current year:	$
(2)	For the previous year:	$

bEnter the total unpaid loss adjustment expenses shown on the corporation’s annual statement:

(1)	For the current year:	$
(2)	For the previous year:	$

11Enter the available net operating loss carryover from prior tax years. (Do not reduce it by any deduction

on page 1, line 21b.) . . ▶ $

12a Enter the corporation’s state of domicile. ▶

bWas the annual statement used to prepare the tax return filed with the state of domicile? . . . .

If “No,” complete c below.

cEnter the state where the annual statement used to prepare the tax return was filed. ▶

13Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement?

See instructions . . . . . . . . . .

If “Yes,” complete and attach Schedule UTP.

14Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years?

(See section 59A(e)(2) and (3).) . . . . . .

If “Yes,” complete and attach Form 8991.

15During the tax year, did the corporation pay or

accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions . . . . . . . . . . . .

If “Yes,” enter the total amount of the disallowed deductions . . . . ▶ $

16Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See

instructions . . . . . . . . . . . .

17Is the corporation required to file Form 8990, Limitation on Business Interest Expense Under Section 163(j), to calculate the amount of deductible business interest? See instructions . . . . .

Yes No

Form 1120-L (2021)

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Form 1120 L completion process described (portion 1)

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Form 1120 L completion process outlined (portion 2)

Be extremely careful when filling out Deductible policy acquisition and Plus b Net operating, since this is the section where a lot of people make mistakes.

3. The third stage is normally easy - complete all of the form fields in Sign Here, Reserved for future use Reserved, Paid Preparer Use Only, Signature of officer, Date, Title, PrintType preparers name, Preparers signature, Date, Firms name, Firms address, May the IRS discuss this return, Yes, Check if selfemployed, and PTIN in order to finish the current step.

Sign Here, Title, and PTIN in Form 1120 L

4. Completing Dividends from lessthanowned, Dividends from ormoreowned, Dividends on certain debtfinanced, foreign, Dividends on certain preferred, Dividends from lessthanowned, Dividends from ormoreowned foreign, see instructions, Dividends not subject to proration, Affiliated company dividends, see instructions, Foreignsource portion of dividends, Dividends from foreign, Reserved for future use, and a Subpart F inclusions derived is crucial in this fourth form section - make certain that you don't rush and be attentive with every empty field!

5. Now, the following last part is precisely what you will have to wrap up before closing the form. The blanks at this point include the next: a Subpart F inclusions derived, b Subpart F inclusions derived, attach Forms see instructions, c Other inclusions from CFCs under, or attach Forms see instructions, Form L, Global intangible lowtaxed income, Total dividends and inclusions Add, Section deduction attach Form, Total deductions Add lines a, Investment Income see, Interest excluding taxexempt, and Schedule B.

Total dividends and inclusions Add, c Other inclusions from CFCs under, and b Subpart F inclusions derived of Form 1120 L

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