IRS Form 15674 Guide: Consent to Disclose Tax Information

Introduction: What Is IRS Form 15674?

IRS Form 15674, officially titled Consent to Disclose Tax Information, is a specialized disclosure authorization document issued by the Internal Revenue Service (IRS). Governed by the Department of the Treasury, this form is administered through the Large Business and International (LB&I) division of the IRS.

Form 15674 operates within the Federal Excise Tax (FET) Exemption Program. Under United States tax law, cross-border insurance transactions are subject to specific federal excise taxes unless an applicable income tax treaty provides an exemption. Foreign insurance and reinsurance companies that qualify for treaty benefits enter into formal closing agreements with the IRS to establish their tax-exempt status.

Because federal tax records are strictly confidential, the IRS cannot publicly confirm that a company holds an active closing agreement without the taxpayer’s permission. Form 15674 provides the legal consent required under Internal Revenue Code (IRC) Section 6103(c), allowing the IRS to publish the foreign insurer’s name and exemption status on its public website and in the Internal Revenue Bulletin.

Purpose of the Form: Why Does Form 15674 Exist?

Under IRC Section 4371, the federal government imposes an excise tax on insurance and reinsurance policies issued by foreign insurers covering U.S. risks. The tax rate is 4% on gross premiums for casualty insurance and indemnity bonds, and 1% on life insurance, health insurance, annuity contracts, and reinsurance policies.

Several bilateral tax treaties—including those with the United Kingdom, France, Germany, Japan, and Switzerland—contain provisions that exempt foreign insurers from this excise tax. Under IRS Revenue Procedure 2003-78, a foreign insurer must enter into a formal closing agreement with the IRS to claim this treaty exemption.

U.S. policyholders and independent insurance brokers who remit premiums to foreign carriers are legally required to withhold and pay this excise tax unless they have verified knowledge that the foreign carrier holds an effective closing agreement. Form 15674 solves this verification problem by authorizing the IRS to add the insurer to the public master list, giving U.S. brokers and corporate buyers immediate proof that premiums can be paid without tax withholding.

Who Needs to File Form 15674?

Form 15674 is designed specifically for international insurance entities that have established a formal tax relationship with the IRS:

• Foreign Insurers with Active Closing Agreements: Overseas insurance and reinsurance corporations that have finalized a Section 4371 closing agreement under Revenue Procedure 2003-78 (or predecessor revenue procedures) and wish to be listed on the IRS public exemption roster.
• Listed Insurers Undergoing Corporate Changes: Foreign insurance carriers currently on the IRS exemption list that undergo a corporate name change, merger, or reorganization and must update their published details.
• International Reinsurers Seeking Market Trust: Foreign carriers that want to provide transparent, IRS-verified proof of their treaty-exempt status to U.S. ceding companies and commercial brokers.

Who Is Exempt or Not Required to File?

Because Form 15674 is restricted to a very specific international excise tax program, most taxpayers and companies have no reason to use it:

• Domestic U.S. Insurance Companies: American insurers are subject to regular federal corporate income taxes and do not pay or qualify for foreign insurance excise tax exemptions.
• Foreign Insurers Without Closing Agreements: International carriers that have not executed a formal closing agreement with the IRS cannot file Form 15674 because they have no approved agreement to disclose.
• U.S. Policyholders and Insurance Brokers: The insured parties and brokers who buy policies use the published list to verify exemptions; they do not file Form 15674 themselves.
• Individual Taxpayers and General Businesses: Everyday citizens and non-insurance corporations never complete or submit this form.

When to File: Deadlines and Frequency

Form 15674 is an event-based administrative filing with no annual tax deadline:

• Upon Closing Agreement Execution: Foreign insurers typically submit Form 15674 immediately after receiving their signed closing agreement from the IRS to ensure timely publication.
• Corporate Update Windows: If the company changes its legal name, country of residence, or corporate structure, an amended Form 15674 must be submitted promptly.
• One-Time Submission: Once submitted and processed, the consent remains effective for the life of the closing agreement unless the company formally revokes its consent or the agreement is terminated.

Where and How to File Form 15674

The IRS Large Business and International division provides dedicated communication channels for processing Form 15674:

Electronic Submission via Email: The primary and expedited method for submitting Form 15674 is sending a completed, signed PDF document directly to the designated IRS Federal Excise Tax Exemption Program mailbox at the official email address specified in program guidelines.

Mail Delivery: If physical mailing is required, documents must be delivered to the specific IRS excise tax program office at the official IRS address as per instructions provided in Revenue Procedure 2003-78 or subsequent administrative updates.

Step-by-Step Instructions to Fill Out Form 15674

Form 15674 is a concise legal disclosure document that captures corporate identifiers, treaty references, and formal consent declarations.

Section / Item	Required Information	Operational Objective
Taxpayer Identification	Company Legal Name, Address, & EIN	Identifies the foreign insurance entity exactly as recorded on the IRS closing agreement.
Jurisdiction of Residence	Treaty Country of Incorporation	Confirms the foreign country whose bilateral tax treaty provides the excise tax exemption.
Closing Agreement Details	Effective Date & Revenue Procedure	References the underlying agreement executed under Rev. Proc. 2003-78 or Rev. Proc. 2015-46.
Disclosure Authorization	Scope of Public Release	Authorizes publication of company name, EIN, country, and status on IRS.gov and in the Internal Revenue Bulletin.
Revocation Terms	Duration of Effectiveness	Affirms that consent remains active until the insurer delivers written revocation to the IRS.
Signature Block	Corporate Execution & Date	An authorized corporate officer signs under penalties of perjury certifying legal authority.

Detailed Walkthrough of Form Requirements

Step 1: Enter Exact Corporate Identifiers. Enter the foreign company’s full legal name, registered corporate address, and U.S. Employer Identification Number (EIN). The legal name must match the name on the executed closing agreement exactly to avoid administrative confusion.

Step 2: Reference Treaty Jurisdiction and Closing Agreement. Identify the specific treaty nation (e.g., the United Kingdom, Bermuda, or Switzerland) under which the company claims exemption. Specify the effective date of the closing agreement signed with the IRS.

Step 3: Authorize Public Disclosure. Review the disclosure declaration under IRC Section 6103(c). By signing, the company agrees that the IRS may publish its name, tax identification number, and closing agreement status in public lists maintained on the IRS website and in the periodic Internal Revenue Bulletin.

Step 4: Execute Under Penalties of Perjury. An authorized officer—such as the managing director, corporate secretary, or chief financial officer—must sign and date the form. The officer must have legal authority to bind the foreign corporation in federal tax matters.

Required Documents and Information Needed Before Filling

Before completing Form 15674, gather the following corporate and legal records:

• Executed IRS Closing Agreement: A complete copy of the signed closing agreement executed between the foreign insurer and the IRS Commissioner under Revenue Procedure 2003-78.
• U.S. Employer Identification Number (EIN): Confirmation of the foreign entity’s federal EIN assigned by the IRS.
• Certificate of Tax Residency: Proof of residence issued by the competent tax authority of the treaty country.
• Corporate Authorization Documents: Board resolutions or corporate bylaws confirming the signing officer’s legal authority to execute tax disclosures.

Common Mistakes to Avoid

Submitting an incomplete or inaccurate consent form can delay publication on the IRS website. Watch out for these frequent mistakes:

• Submitting Before the Agreement Is Finalized: Sending Form 15674 while your closing agreement application is still pending review will result in rejection. The closing agreement must be fully executed before consent can be processed.
• Mismatched Corporate Names: Listing a trading name or subsidiary name that differs from the legal entity named in the closing agreement prevents the IRS from matching records.
• Unauthorized Signatories: Having an outside insurance broker or unauthorized consultant sign the form invalidates the submission. The form must be signed by an authorized corporate officer or a representative with a valid Form 2848 on file.
• Confusing Form 15674 with an Excise Tax Return: Form 15674 is purely a consent document. It does not replace quarterly tax reporting on Form 720 for policies that do not qualify for treaty exemptions.
• Failing to Submit Name Updates: If an insurer undergoes a legal name change but fails to submit an updated Form 15674, U.S. brokers searching the IRS list will not find the new name, leading to withholding disputes.

Consequences of Not Filing Form 15674

Because Form 15674 is a voluntary disclosure consent form, the IRS does not assess statutory monetary penalties for failing to file it. However, the commercial and administrative consequences for a foreign insurer can be severe:

• Omission from the Public Exemption List: The IRS will not publish your company’s name on its website or in the Internal Revenue Bulletin, even if you hold a valid closing agreement.
• Mandatory Premium Withholding: U.S. brokers and policyholders who cannot verify your status on the IRS public list are legally obligated to withhold the 1% or 4% excise tax from premium payments.
• Loss of U.S. Market Share: Commercial clients and reinsurance brokers often refuse to place business with foreign carriers that are not verified on the official IRS exemption roster to avoid excise tax liabilities.
• Audit Burdens for Clients: U.S. policyholders who pay gross premiums without withholding may face IRS audit inquiries, forcing the foreign insurer to provide customized closing agreement certificates for every individual transaction.

Related Forms and Publications

Form 15674 operates alongside several key excise tax, withholding, and treaty disclosure documents:

• Form 720: Quarterly Federal Excise Tax Return (used to report and remit Section 4371 taxes).
• Form 8833: Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b).
• Form W-8BEN-E: Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities).
• Form 1120-F: U.S. Income Tax Return of a Foreign Corporation.
• Form 2848: Power of Attorney and Declaration of Representative.
• Form 8821: Tax Information Authorization.
• Revenue Procedure 2003-78 / Revenue Procedure 2015-46: The official IRS procedural guidelines governing Section 4371 closing agreements.

Frequently Asked Questions (FAQs)

What is the federal excise tax imposed under IRC Section 4371?

IRC Section 4371 imposes an excise tax on insurance and reinsurance policies issued by foreign insurers covering U.S. risks. The tax rate is 4% on casualty insurance and indemnity bonds, and 1% on life, sickness, accident policies, and reinsurance.

Does signing Form 15674 make my company’s entire tax return public?

No. Form 15674 authorizes the IRS to disclose only limited identifying details: the company’s legal name, country of tax residence, EIN, and the fact that it has an effective closing agreement. No financial figures, premium amounts, or tax returns are disclosed.

Can a U.S. broker rely solely on the IRS website list to exempt premiums?

While the IRS list provides strong evidence, the IRS notes that published lists cannot be treated as completely conclusive. U.S. brokers and policyholders should confirm with the foreign insurer that their closing agreement remains valid and in good standing.

Is there an IRS user fee to submit Form 15674?

No. While establishing a closing agreement or requesting a private letter ruling involves user fees, there is no fee required to submit Form 15674 to authorize public disclosure.

Can a foreign insurer revoke its consent under Form 15674?

Yes. A company may revoke its disclosure consent at any time by delivering a written revocation notice to the IRS LB&I Federal Excise Tax Exemption Program coordinator. Upon receipt, the IRS will remove the company from the public list.

How long does it take for a company to appear on the IRS website after filing?

The IRS updates its public list of foreign insurers with closing agreements periodically. Once the signed Form 15674 is processed and verified against the master closing agreement file, the company is added during the next scheduled website update.

Conclusion: Key Takeaways

IRS Form 15674, Consent to Disclose Tax Information, is an essential commercial tool for foreign insurance and reinsurance companies doing business in the United States. By bridging strict statutory privacy protections with the need for commercial transparency, it allows the IRS to verify treaty-exempt carriers to the public.

For international carriers holding an effective closing agreement under Revenue Procedure 2003-78, submitting Form 15674 ensures inclusion on the official IRS exemption roster. This simple step prevents improper premium withholding, protects U.S. brokers from audit penalties, and ensures smooth cross-border insurance operations.