[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.594-1]

[Page 365-366]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.594-1  Mutual savings banks conducting life insurance business.

    (a) Scope of application. Section 594 applies to the case of a 
mutual savings bank not having capital stock represented by shares which 
conducts a life insurance business, if:
    (1) The conduct of the life insurance business is authorized under 
State law,

[[Page 366]]

    (2) The life insurance business is carried on in a separate 
department of the bank,
    (3) The books of account of the life insurance business are 
maintained separately from other departments of the bank, and
    (4) The life insurance department of the bank would, if it were 
treated as a separate corporation, qualify as a life insurance company 
under section 801.
    (b) Computation of tax. In the case of a mutual savings bank 
conducting a life insurance business to which section 594 is applicable, 
the tax upon such bank consists of the sum of the following:
    (1) A partial tax computed under section 11 upon the taxable income 
of the bank determined without regard to any items of income or 
deduction properly allocable to the life insurance department, and
    (2) A partial tax computed on the income (or, in the case of taxable 
years beginning before January 1, 1955, the taxable income (as defined 
in section 803)) of the life insurance department determined without 
regard to any items of income or deduction not properly allocable to 
such department, at the rates and in the manner provided in subchapter L 
(section 801 and following), chapter 1 of the Code, with respect to life 
insurance companies.