[Code of Federal Regulations]
[Title 26, Volume 8]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.802(b)-1]

[Page 608-609]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.802(b)-1  Tax on life insurance companies.

    (a) For taxable years beginning after December 31, 1953, but before 
January 1, 1955, and ending after August 16, 1954,

[[Page 609]]

section 802(b) imposes a tax on the 1954 life insurance company taxable 
income of all life insurance companies (including a foreign life 
insurance company carrying on a life insurance business within the 
United States if with respect to its United States business it would 
qualify as a life insurance company under section 801). The tax so 
imposed is equal to 3 3/4 percent of the amount of such income not in 
excess of $200,000, plus 6 1/2 percent of the amount of such income in 
excess of $200,000. For the definition of the term ``1954 life insurance 
company taxable income'', see Sec. 1.805-1.
    (b) The taxable income of life insurance companies differs from the 
taxable income of other corporations. See section 803. Life insurance 
companies are entitled, in computing life insurance company taxable 
income, to the special deductions provided in part VIII (section 241 and 
following), except section 248, subchapter B, chapter 1 of the Code. The 
gross income, the deduction under section 803 (g)(1) for wholly tax-
exempt interest, and the deduction under section 242 for partially tax-
exempt interest, are decreased by the appropriate amortization of 
premium and increased by the appropriate accrual of discount 
attributable to the taxable year on bonds, notes, debentures, or other 
evidences of indebtedness held by a life insurance company. See section 
803 (i) and Sec. 1.803-6. Such companies are not subject to the 
provisions of subchapter P (section 1201 and following), chapter 1 of 
the Code, relating to capital gains and losses, nor to the provisions of 
section 171 (amortizable bond premium).
    (c) All provisions of the Code and of the regulations in this part 
not inconsistent with the specific provision of sections 801 to 807, 
inclusive, are applicable to the assessment and collection of the tax 
imposed by section 802, and life insurance companies are subject to the 
same penalties as are provided in the case of returns and payment of 
income tax by other corporations. The return shall be on Form 1120L.
    (d) Foreign life insurance companies not carrying on an insurance 
business within the United States are not taxable under section 802, but 
are taxable as other foreign corporations. See section 881.