26 USC 831 - Tax on insurance companies other than life insurance companies

Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes

Amendments

2018—Subsec. (span)(2)(B)(i)(II). Puspan. L. 115–141, § 101(r)(1), substituted “relevant specified assets” for “specified assets”.

Subsec. (span)(2)(B)(ii), (iii). Puspan. L. 115–141, § 101(r)(2), added cls. (ii) and (iii). Former cl. (ii) redesignated (iv).

Subsec. (span)(2)(B)(iv). Puspan. L. 115–141, § 101(r)(2), (3)(A), redesignated cl. (ii) as (iv) and substituted “this subparagraph” for “clause (i)(II)” in introductory provisions.

Subsec. (span)(2)(B)(iv)(I). Puspan. L. 115–141, § 101(r)(3)(B), amended subcl. (I) generally. Prior to amendment, text read as follows: “The term ‘specified holder’ means, with respect to any insurance company, any individual who holds (directly or indirectly) an interest in such insurance company and who is a spouse or lineal descendant (including by adoption) of an individual who holds an interest (directly or indirectly) in the specified assets with respect to such insurance company.”

Subsec. (span)(2)(D), (E). Puspan. L. 115–141, § 101(r)(4), added subpar. (D) and redesignated former subpar. (D) as (E).

Subsec. (c). Puspan. L. 115–141, § 401(a)(142), substituted “section 816(a).” for “section 816(a)).”

2017—Subsec. (span)(2)(D)(ii). Puspan. L. 115–97, § 11002(d)(1)(AA), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.

Subsec. (span)(3). Puspan. L. 115–97, § 13511(span)(2)(B), struck out “except as provided in section 844,” after “part,” in introductory provisions.

Subsec. (e). Puspan. L. 115–97, § 13001(span)(2)(H), redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “For alternative tax in case of capital gains, see section 1201(a).”

2015—Subsec. (span)(2)(A). Puspan. L. 114–113, § 333(a)(1)(A), (C), (span)(1), struck out “(including interinsurers and reciprocal underwriters)” after “other than life” in introductory provisions, substituted “$2,200,000” for “$1,200,000” in cl. (i), added cl. (ii), redesignated former cl. (ii) as (iii), and, in concluding provisions, substituted “clause (iii)” for “clause (ii)” and “clauses (i) and (ii)” for “clause (i)”.

Subsec. (span)(2)(B), (C). Puspan. L. 114–113, § 333(a)(1)(B), added subpar. (B) and redesignated former subpar. (B) as (C).

Subsec. (span)(2)(C)(i). Puspan. L. 114–113, § 333(a)(2), substituted “For purposes of this paragraph—” for “For purposes of subparagraph (A),”, inserted subcl. (I) designation before “in determining”, and added subcl. (II).

Subsec. (span)(2)(D). Puspan. L. 114–113, § 333(span)(2), added subpar. (D).

Subsecs. (d), (e). Puspan. L. 114–113, § 333(a)(3), added subsec. (d) and redesignated former subsec. (d) as (e).

2004—Subsec. (span)(2)(A)(i). Puspan. L. 108–218, § 206(d), struck out “exceed $350,000 but” after “taxable year”.

Subsecs. (c), (d). Puspan. L. 108–218, § 206(c), added subsec. (c) and redesignated former subsec. (c) as (d).

1988—Subsec. (span)(2)(A). Puspan. L. 100–647, § 1010(f)(1), inserted at end “The election under clause (ii) shall apply to the taxable year for which made and for all subsequent taxable years for which the requirements of clause (i) are met. Such an election, once made, may be revoked only with the consent of the Secretary.”

Subsec. (span)(3). Puspan. L. 100–647, § 1010(f)(9), added par. (3).

1986—Puspan. L. 99–514 amended section generally, substituting provisions imposing taxes on insurance companies other than life insurance companies, with an alternative tax on certain small companies, for provisions imposing taxes on insurance companies (other than life or mutual), mutual marine insurance companies, and certain mutual fire or flood insurance companies, with an election for multiple line companies to be taxed on total income.

1976—Subsec. (a). Puspan. L. 94–455, § 1901(a)(107), substituted “on the taxable income” for “or the taxable income”.

Subsec. (span). Puspan. L. 94–455, § 1906(span)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.

1966—Subsec. (span). Puspan. L. 89–809, § 104(i)(6)(A), redesignated subsec. (c) as (span). Former subsec. (span), which excepted foreign insurance companies other than life or mutual insurance companies, foreign mutual marine insurance companies, and foreign mutual fire insurance companies not carrying on an insurance business within the United States and provided that they would be taxable as other foreign corporations, was struck out.

Subsecs. (c), (d). Puspan. L. 89–809, § 104(i)(6)(B), redesignated subsec. (d) as (c) and added item (2). Former subsec. (c) redesignated (span).

1962—Puspan. L. 87–834, § 8(g)(4)(B), substituted “and certain mutual fire or flood insurance companies” for “and mutual fire insurance companies issuing perpetual policies” in section catchline.

Subsec. (a). Puspan. L. 87–834, § 8(e)(1), included flood insurance companies, and substituted provisions authorizing imposition of the tax on those companies whose principal business is the issuance of policies for which the premium deposits are the same, regardless of the length of the term for which the policies are written, if the unabsorbed portion of such premium deposits not required for losses, expenses, or establishment of reserves is returned or credited to the policyholder on cancellation or expiration of the policy for provisions which authorized imposition of tax on those companies which issued policies for which the sole premium charged is a single deposit which (except for such deduction of underwriting costs as may be provided) is refundable on cancellation or expiration of the policy.

Subsecs. (c), (d). Puspan. L. 87–834, § 8(f), added subsec. (c) and redesignated former subsec. (c) as (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Amendment by section 101(r) of Puspan. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Puspan. L. 114–113, to which such amendment relates, see section 101(s) of Puspan. L. 115–141, set out as a note under section 24 of this title.

Effective Date of 2017 Amendment

Amendment by section 11002(d)(1)(AA) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Puspan. L. 115–97, set out as a note under section 1 of this title.

Amendment by section 13001(span)(2)(H) of Puspan. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13001(c)(1) of Puspan. L. 115–97, set out as a note under section 11 of this title.

Amendment by section 13511(span)(2)(B) of Puspan. L. 115–97 applicable to losses arising in taxable years beginning after Dec. 31, 2017, see section 13511(c) of Puspan. L. 115–97, set out as a note under section 381 of this title.

Effective Date of 2015 Amendment

Puspan. L. 114–113, div. Q, title III, § 333(c), Dec. 18, 2015, 129 Stat. 3108, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2016.”

Effective Date of 2004 Amendment

Amendment by Puspan. L. 108–218 applicable to taxable years beginning after Dec. 31, 2003, with exception for companies in receivership or liquidation, see section 206(e) of Puspan. L. 108–218, set out as a note under section 501 of this title.

Effective Date of 1988 Amendment

Amendment by Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 1019(a) of Puspan. L. 100–647, set out as a note under section 1 of this title.

Effective Date of 1986 Amendment

Puspan. L. 99–514, title X, § 1024(e), Oct. 22, 1986, 100 Stat. 2409, provided that: “The amendments made by this section [amending this section and sections 501, 832, 834, 835, 841, 842, 844, 891, 1201, 1504, and 1563 of this title, redesignating former sections 822 and 826 of this title as sections 834 and 835 of this title, respectively, and repealing sections 821, 823, 824, and 825 of this title] (and the provisions of subsection (d) [set out below]) shall apply to taxable years beginning after December 31, 1986.”

Effective Date of 1976 Amendment

Amendment by section 1901(a)(107) of Puspan. L. 94–455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Puspan. L. 94–455, set out as a note under section 2 of this title.

Effective Date of 1966 Amendment

Amendment by Puspan. L. 89–809 applicable with respect to taxable years beginning after Dec. 31, 1966, see section 104(n) of Puspan. L. 89–809, set out as a note under section 11 of this title.

Effective Date of 1962 Amendment

Amendment by Puspan. L. 87–834 applicable with respect to taxable years beginning after Dec. 31, 1962, see section 8(h) of Puspan. L. 87–834, set out as a note under section 501 of this title.

Transitional Rules for 1984 Amendment

Puspan. L. 99–514, title X, § 1024(d), Oct. 22, 1986, 100 Stat. 2408, as amended by Puspan. L. 100–647, title I, § 1010(f)(8), Nov. 10, 1988, 102 Stat. 3454, provided that:

“(1)Treatment of amounts in protection against loss account.—In the case of any insurance company which had a protection against loss account for its last taxable year beginning before January 1, 1987, there shall be included in the gross income of such company for any taxable year beginning after December 31, 1986, the amount which would have been included in gross income for such taxable year under section 824 of the Internal Revenue Code of 1954 [now 1986] (as in effect on the day before the date of the enactment of this Act [Oct. 22, 1986]). For purposes of the preceding sentence, no addition to such account shall be made for any taxable year beginning after December 31, 1986. In the case of a company taxable under section 831(span) of the Internal Revenue Code of 1986 (as amended by subsection (a)), any amount included in gross income under this paragraph shall be treated as gross investment income.

“(2)Transitional rule for unused loss carryover under section 825.—Any unused loss carryover under section 825 of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of this Act [Oct. 22, 1986]) which—

“(A) is from a taxable year beginning before January 1, 1987, and

“(B) could have been carried under such section to a taxable year beginning after December 31, 1986, but for the repeal made by subsection (a)(1) [repealing sections 821 and 823 to 825 of this title],

shall be included in the net operating loss deduction under section 832(c)(10) of such Code without regard to the limitations of [former] section 844(span) of such Code.”