This article applies to:

Product: ONESOURCE Income Tax
Return type: 1120 Corporation
Subject: insurance

1120-PC insurance returns

IRS Form 1120-PC, the U.S. Property and Casualty Insurance Company Income Tax Return, is used by insurance companies (excluding life insurance companies) to report their financial data—including income, gains, losses, deductions, and credits. It's also used to calculate their income tax liability.

While life insurance companies typically file Form 1120-L, failed life returns
are an exception. These returns, even from life insurance companies, need to be filed with the IRS using Form 1120-PC.

The following items are unique to 1120-PC returns:

Loss reserve discounting (LRD)

Salvage and subrogation

Failed Life

Deferred Acquisition Costs (DAC)

note

The Deferred Acquisition costs (DAC) are most commonly entered on the 1120-L returns. These are the expenses incurred when gathering new premiums and amortized under Section 848.