Fill Out Your Virginia 801 Form

What is the Virginia Form 801?

The Virginia Form 801 is the Surplus Lines Brokers Quarterly Tax Report. This form is required for surplus lines brokers who expect their annual premiums tax liability to exceed $1,500. It reports gross premium income from policies for insureds based in Virginia during each calendar quarter.

Who needs to file Form 801?

Surplus lines brokers must file Form 801 if they anticipate an annual premiums tax liability of over $1,500. Additionally, the broker must have derived direct gross premium income from insureds whose home state is Virginia during the reporting quarter. If no premiums are collected (Line 8 shows $0), filing is not necessary for that quarter.

When is Form 801 due?

The completed Form 801 must be postmarked no later than 30 days after the end of each calendar quarter. If the due date falls on a weekend or legal holiday, the report can be postmarked on the next business day and still be considered timely.

How do I file and pay for Form 801?

You can file and pay online for free through Virginia’s eForms at www.tax.virginia.gov. For paper filing, send the completed form and a check or money order to the Virginia Department of Taxation at P.O. Box 26179, Richmond, VA 23260-6179. Ensure that the payment is made payable to the Virginia Department of Taxation.

What if I miss the filing deadline?

Late filing may result in penalties. If you do not submit your Form 801 by the due date, you could incur additional fees. It is important to file on time to avoid these complications.

What information do I need to complete Form 801?

To fill out Form 801, you will need to provide information about gross premiums, additional premiums, returned premiums, and the corresponding tax calculations. Ensure all amounts are accurate, as you must sign to attest to the truthfulness of the information provided.

What is the tax rate applied on premiums reported in Form 801?

The premiums tax rate is 2.25%. You will calculate your premiums tax by multiplying the taxable premiums (Line 5) by this rate to determine the amount due (Line 6).

What happens if I have credits from prior periods?

If you have credits from previous periods, enter this amount on Line 7. If the credits equal or exceed the premium tax owed (Line 6), do not file Form 801 for that quarter. Carry over any remaining credits to the next quarterly report. Refunds are only processed through the annual reconciliation tax report, Form 802.

Where can I find assistance with Form 801?

You can visit the Virginia Department of Taxation’s website for additional information. If you have questions, contact them by phone at (804) 404-4163 or send correspondence to P.O. Box 715, Richmond, VA 23218-0715. However, do not mail your returns to this address.

Completing the Virginia 801 form can appear straightforward, yet many individuals make common mistakes that can lead to complications down the line. One prevalent error occurs when people fail to file the form altogether. If a surplus lines broker expects their annual premiums tax liability to surpass the $1,500 threshold, they must file. However, if the broker derives no gross premium income during the quarter, they are not required to submit the form. It's crucial to assess the need for filing based on the specific circumstances of that quarter.

Another frequent mistake involves miscalculating the gross premiums. On Line 1, brokers should carefully enter the total amount of all premiums, assessments, dues, and fees collected. Omitting any components or mistakenly adding unrelated figures can result in inaccuracies that may trigger additional scrutiny or penalties. Double-checking this line before submission can save time and stress.

Line 2 requires careful attention as well. Mistakes often happen when brokers miscalculate additional premiums, sometimes forgetting to consider any insurance riders or adjustments. Clearly documenting all these details during the quarter can help ensure that Line 2 is completed accurately. The same principle applies to Line 4, which addresses returned premiums. Failing to report returned amounts correctly can lead to inflated figures on the taxable premium line, further complicating the filing process.

Many brokers also overlook Line 6, where the premiums tax is calculated by multiplying the taxable premiums from Line 5 by 2.25%. This may seem simple, yet mistakes arise when the calculations are rushed or done without precise attention to detail. Errors at this stage can lead to significant discrepancies in tax owed.

The handling of Line 7, which covers credits from prior periods, is another area prone to mistakes. Brokers sometimes misinterpret which amounts qualify for credits and may report excessive amounts. If the total on Line 7 equals or exceeds that on Line 6, brokers must remember not to file Form 801. Maintaining careful records and consulting prior tax reports can help avoid this issue.

Signing the form also requires mindful consideration. Some brokers forget to include their signature or the date on the report. This seemingly minor omission can result in rejection of the form or delay in processing. Therefore, a final review to ensure completeness is always wise before submission.

Additionally, when filing on paper, brokers must remember the correct postal address. Mistakenly sending the form to the incorrect address can delay processing and result in late fees. It is beneficial for brokers to be familiar with the address for paper submissions to avert this issue.

Timeliness represents another key aspect. The report should be postmarked no later than 30 calendar days after the end of each calendar quarter. Missing this deadline can lead to penalties. To avoid paying additional fees, brokers should set reminders for filing dates to ensure the report is submitted on time.

Lastly, a common misstep occurs with payment methods. Brokers must ensure they include payment with their filing when submitting a paper form. Failing to send a check or money order along with the return can lead to processing delays and potential penalties. Being thorough in payment arrangements is crucial.

In summary, careful attention to each line of the Virginia 801 form, along with a comprehensive understanding of the filing process, can help surplus lines brokers avoid these common mistakes. A meticulous approach can reduce stress and ensure compliance with state requirements.

In Virginia, multiple documents complement the Virginia 801 form, ensuring that surplus lines brokers stay compliant with tax regulations. Familiarizing yourself with these forms can streamline your reporting and tax responsibilities. Here’s a list of related forms and their brief descriptions.

• Form 802: Virginia Surplus Lines Broker's Annual Reconciliation Tax Report - This form reconciles the quarterly filings for the entire year. It is due by March 1 following the close of the taxable year, even if there’s no tax owed.
• Form VA-760: Virginia Individual Income Tax Return - Though unrelated to surplus lines specifically, this form is necessary for individual brokers filing their own income tax returns.
• Form W-2: Wage and Tax Statement - Employers provide this form to employees to report wages and taxes withheld. It's essential for brokers with employees.
• Form 1099: Miscellaneous Income - This form is required for reporting payments made to independent contractors. Brokers utilizing freelance help must issue these forms when payments exceed certain thresholds.
• Form 120: Business or Professional License Application - Brokers may need this form to apply for local business licenses that are required by their municipality.
• Form 1310: Statement of Person Claiming Refund Due a Deceased Taxpayer - Use this form if a surplus lines broker pass away and the executor needs to claim any tax refund.
• Form 740: Virginia Corporation Income Tax Return - If the brokerage is structured as a corporation, this form must be completed for corporate income tax obligations.
• Form ST-9: Virginia Sales and Use Tax Certificate of Exemption - Brokers supplying certain services might need this certificate to exempt themselves from paying sales tax on qualifying purchases.

Staying organized with these documents is essential for meeting tax obligations as a surplus lines broker in Virginia. Each form serves a specific purpose and helps maintain compliance with state regulations, ensuring smooth operations in your brokerage business.

• Virginia Surplus Lines Broker’s Annual Reconciliation Tax Report (Form 802): Like Form 801, Form 802 is essential for surplus lines brokers. It reconciles the quarterly tax payments from Form 801 and is due by March 1 of the following year. This ensures that all taxes paid throughout the year align with actual premium receipts.
• Virginia Sales Tax Return (Form ST-9): This form is used to report and pay sales tax collected during a specific period. Both Form ST-9 and Form 801 share a quarterly reporting requirement, aimed at ensuring compliance with state tax obligations.
• Virginia Corporate Income Tax Return (Form 500): Corporations must file this annual return to report income and calculate taxes owed. Similar to Form 801, it holds businesses accountable for accurate financial reporting and timely submissions, albeit on an annual basis.
• Virginia Individual Income Tax Return (Form 760): This form is completed by individuals to report personal income. Like Form 801, it involves assessing income and corresponding tax liabilities, ensuring individuals pay their due taxes.
• Virginia Estimated Tax for Corporations (Form 500 ES): This form assists corporations in estimating their tax liabilities for the year. It is akin to Form 801 since both require estimates and timely payments, allowing for better financial planning.

• Do double-check your calculations before submitting the form to avoid any errors.
• Do ensure you include all required tax information as instructed in the guidelines.
• Do verify the filing deadline and postmark your report on or before this date.
• Don't forget to sign and date the report; an unsigned form will be considered incomplete.
• Don't use the mailing address for inquiries to submit your form; use the designated address instead.
• Don't mail your payment to the incorrect address; make sure it goes to the Virginia Department of Taxation.
• Don't wait until the last minute to file; aim to submit well before the deadline to avoid issues.

Misconception 1: Form 801 only needs to be filed if the surplus lines broker owes a tax.

In reality, Form 801 must be filed whenever a surplus lines broker can reasonably expect their annual premiums tax liability to exceed $1,500, regardless of whether they owe any tax in a particular quarter.

Misconception 2: If a broker’s income for a quarter is $0, they still have to file Form 801.

This is incorrect. If the amount reported on Line 8 is $0, Form 801 is not required for that quarter, eliminating the need for unnecessary paperwork.

Misconception 3: Filing and payment can take place at any time after the end of the quarter.

Filing and payment must be completed no later than 30 calendar days after the end of each quarter. Marking the due date on the calendar is essential to remain compliant.

Misconception 4: Payments can be mailed to the same address where forms are submitted electronically.

This is a common error. While returns can be filed electronically, payments must be mailed to a different address for processing various tax obligations accurately.

Misconception 5: Refunds for overpayments can be obtained through Form 801.

Refunds are not issued via Form 801. They are only processed through the annual return, Form 802, emphasizing the importance of understanding the correct filing processes for any potential credits.

Filing the Virginia 801 form, also known as the Surplus Lines Brokers Quarterly Tax Report, is essential for brokers operating in Virginia. Here are some key takeaways to guide you through the process:

• Who Must File: Only surplus lines brokers with an estimated annual premium tax liability of more than $1,500 need to complete this report. If there were no gross premiums during the quarter (Line 8 is $0), filing is not required.
• Deadlines Are Key: Ensure that your report and payment are postmarked within 30 days of the end of each quarter. If the due date falls on a weekend or holiday, you may submit it on the next business day.
• Payment Methods: You can file online through the Virginia Department of Taxation’s eForms system. If opting for paper filing, send your payment along with a check or money order made out to the Virginia Department of Taxation.
• Correct Information is Crucial: Accurate completion of the lines is important, especially Lines 1 (Gross Premiums) and 6 (Premiums Tax). Double-check for any miscalculations to avoid issues later.
• Credits from Prior Periods: If you have credits from previous periods, accurately reporting this on Line 7 can affect your total amount due on Line 8. If your credits exceed your taxable premium, refrain from filing Form 801 until the next quarter.
• Annual Reporting: Don’t forget about the Virginia Surplus Lines Broker’s Annual Reconciliation Tax Report, Form 802, which is due by March 1 of the following year. This is crucial, even if no tax is owed.