[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: 26CFR1.809-9]

[Page 635-636]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.809-9  Computation of the differential earnings rate and the 
recomputed differential earnings rate.

    (a) In general. Neither the differential earnings rate under section 
809(c) nor the recomputed differential earnings rate that is used in 
computing the recomputed differential earnings amount under section 
809(f)(3) may be less than zero.
    (b) Definitions--(1) Recomputed differential earnings amount. The 
recomputed differential earnings amount, with respect to any taxable 
year, is the amount equal to the product of--

[[Page 636]]

    (i) The life insurance company's average equity base for the taxable 
year; multiplied by
    (ii) The recomputed differential earnings rate for that taxable 
year.
    (2) Recomputed differential earnings rate. The recomputed 
differential earnings rate for any taxable year equals the excess of--
    (i) The imputed earnings rate for the taxable year; over
    (ii) The average mutual earning rate for the calendar year in which 
the taxable year begins.
    (c) Effective date. The regulations are effective for all taxable 
years beginning after December 31, 1986.

[T.D. 8499, 58 FR 64899, Dec. 10, 1993]