[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: 26CFR1.826-3]

[Page 728-729]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.826-3  Attorney-in-fact of electing reciprocals.

    (a) Manner of making consent. Section 826(c)(2) provides that a 
reciprocal may not elect to be subject to the limitation provided by 
section 826(b) unless its attorney-in-fact consents to make certain 
information available. See paragraph (b) of this section. The attorney-
in-fact of a reciprocal making the election provided by section 826(a) 
shall signify the consent required by section 826(c) in a statement 
attached to its income tax return for the first taxable year for which 
the reciprocal's election is to apply. Such statement shall include the 
name and address of the consenting taxpayer; the name and address of the 
reciprocal with respect to which such consent is to apply; shall be 
signed by the taxpayer (or its duly authorized representative); and 
shall be filed not later than the date prescribed by law (including 
extensions thereof) for filing the income tax return for the first 
taxable year for which such consent is to apply. In addition, such 
statement shall specify that the taxpayer is subject to the taxes 
imposed by section 11 (b) and (c); the method of accounting used in 
reporting income received from its reciprocal and the deductions 
allocable thereto; and that its return is filed on the calendar year 
basis. Consent, once given, shall be irrevocable for the period during 
which the election provided for the reciprocal by section 826(a) is in 
effect. See paragraph (e) of Sec. 1.826-1.
    (b) Information required of consenting attorney-in-fact. Every 
attorney-in-fact making the consent provided by section 826(c)(2) and 
paragraph (a) of this section shall, in the manner prescribed

[[Page 729]]

by paragraph (c) of this section, furnish the following information for 
each taxable year during which the consent provided by section 826(c)(2) 
and paragraph (a) of this section is in effect:
    (1) The name and address of the reciprocal with respect to which the 
consent required by section 826(c)(2) and paragraph (a) of this section 
is to apply;
    (2) Gross income in total and by sources, adjusted for returns and 
allowances;
    (3) Deductions (itemized to the same extent as on taxpayer's income 
tax return and accompanying schedules) allocable to each source of gross 
income and in total (see Sec. 1.826-4);
    (4) Method of allocation used in subparagraph (3) of this paragraph;
    (5) Taxable income (if any) in total and by sources, as in 
subparagraph (2) of this paragraph (income by sources from subparagraph 
(2) of this paragraph minus expenses allocable thereto under 
subparagraph (3) of this paragraph);
    (6) Total income tax liability (if any) for the taxable year;
    (7) Taxes paid attributable (under Sec. 1.826-5) to income earned 
by the taxpayer in dealing with the reciprocal;
    (8) Such other information as may be required by the district 
director.
    (c) Manner in which information is to be provided. (1) The 
information required by paragraph (b) of this section shall be set forth 
in a statement attached to the taxpayer's income tax return for each 
taxable year for which the consent provided by section 826(c)(2) and 
paragraph (a) of this section is in effect. Such statement shall include 
the name and address of the taxpayer, and shall be filed not later than 
the date prescribed by law (including extensions thereof) for filing the 
income tax return for each taxable year for which such information is 
required.
    (2) A copy of the statement containing the information required by 
paragraph (b) of this section shall be submitted to the board of 
advisors (or other comparable body) of the reciprocal on whose behalf 
the consent provided under section 826(c)(2) is given. The copy shall be 
executed in the same manner as the original and shall be delivered to 
such board not later than 10 days before the last date prescribed by law 
(including extensions thereof) for filing the reciprocal's income tax 
return for the taxable year for which the information is required unless 
the attorney-in-fact establishes to the satisfaction of the district 
director that the failure to furnish such copy or the failure to furnish 
such copy within the prescribed 10 day period was due to circumstances 
beyond its control. In addition, there shall be attached to and made a 
part of such copy, a copy of the income tax return of the attorney-in-
fact (including accompanying schedules) for each taxable year for which 
such statement is required.

[T.D. 6681, 28 FR 11125, Oct. 17, 1963]