[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: 26CFR1.803-2]

[Page 613]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.803-2  Adjusted reserves.

    For the purpose of determining ``required interest'' for taxable 
years beginning after December 31, 1953, but before January 1, 1955, and 
ending after August 16, 1954, certain reserves computed on a preliminary 
term method are to be adjusted by increasing such reserves by 7 percent. 
The reserves to be thus adjusted are reserves computed on preliminary 
term methods, such as the Illinois Standard, or the Select and Ultimate 
methods. Only reserves on policies in the modification period are to be 
so adjusted. Where reserves under a preliminary term method are the same 
as on the level premium method, and in the case of reserves for extended 
or paid-up insurance, no adjustment is to be made. The reserves are thus 
adjusted, and the rate of interest on which they are computed, should be 
reported in Schedule A, Form 1120L.