26 USC 816 - Life insurance company defined

Editorial Notes

Prior Provisions

A prior section 816, act Aug. 16, 1954, ch. 736, § 816, as added Mar. 13, 1956, ch. 83, § 2, 70 Stat. 46, related to taxation of foreign life insurance companies, prior to the general revision of this part by Puspan. L. 86–69, § 2(a).

Amendments

1988—Subsec. (g). Puspan. L. 100–647, § 1010(f)(6), substituted “section 831” for “section 821 or section 831”.

Subsec. (h). Puspan. L. 100–647, § 2004(q)(1), substituted “section 842(span)(2)(B)(i)” for “section 842(c)(1)(A)”.

1987—Subsec. (h). Puspan. L. 100–203 substituted “section 842(c)(1)(A)” for “section 813(a)(4)(B)”.

1986—Subsec. (h). Puspan. L. 99–514 added subsec. (h).

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Amendment by section 1010(f)(6) of 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.

Amendment by section 2004(q)(1) of Puspan. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Puspan. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Puspan. L. 100–647, set out as a note under section 56 of this title.

Effective Date of 1987 Amendment

Puspan. L. 100–203, title X, § 10242(d), Dec. 22, 1987, 101 Stat. 1330–423, provided that: “The amendments made by this section [amending this section and sections 842, 864, and 4371 of this title and repealing section 813 of this title] shall apply to taxable years beginning after December 31, 1987.”

Effective Date of 1986 Amendment

Amendment by Puspan. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Puspan. L. 98–369, div. A, to which such amendment relates, see section 1881 of Puspan. L. 99–514, set out as a note under section 48 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Puspan. L. 98–369, set out as a note under section 801 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Puspan. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Puspan. L. 99–514, as amended, set out as a note under section 401 of this title.

Special Election To Treat Individual Noncancellable Accident and Health Contracts as Cancellable

Puspan. L. 98–369, div. A, title II, § 217(i), July 18, 1984, 98 Stat. 764, as amended by Puspan. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Puspan. L. 100–647, title I, § 1010(h)(1), Nov. 10, 1988, 102 Stat. 3455, provided that:

“(1)In general.—A mutual life insurance company may elect to treat all individual noncancellable (or guaranteed renewable) accident and health insurance contracts as though they were cancellable for purposes of section 816 of subchapter L of chapter 1 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954].

“(2)Effect of election on subsidiaries of electing parent.—For purposes of determining the amount of the small life insurance company deduction of any controlled group which includes a mutual company which made an election under paragraph (1), the taxable income of such electing company shall be taken into account under [former] section 806(span)(2) of the Internal Revenue Code of 1986 (relating to phaseout of small life insurance company deduction).

“(3)Election.—An election under paragraph (1) shall apply to the company’s first taxable year beginning after December 31, 1983, and all taxable years thereafter.

“(4)Time and manner.—An election under paragraph (1) shall be made—

“(A) on the return of the taxpayer for its first taxable year beginning after December 31, 1983, and

“(B) in such manner as the Secretary of the Treasury or his delegate may prescribe.”

[Puspan. L. 100–647, title I, § 1010(h)(2), (3), Nov. 10, 1988, 102 Stat. 3455, provided that:

[“(2) Effective date.—The amendment made by this subsection [amending section 217(i) of Puspan. L. 98–369, set out above] shall apply to taxable years beginning after December 31, 1986, and before January 1, 1992.

[“(3) Revenue loss limited.—The decrease in the amount of Federal revenue by reason of the amendment made by this subsection shall not exceed $300,000 per taxable year.”]