[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: 26CFR1.831-4]

[Page 734-735]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
Determination of Tax Liability--Table of Contents
 
Sec. 1.831-4  Election of multiple line companies to be taxed on total 
income.

    (a) In general. Section 831(c) provides that any mutual insurance 
company engaged in writing marine, fire, and casualty insurance which, 
for any 5-year period beginning after December 31, 1941, and ending 
before January 1, 1962, was subject to the tax imposed by section 831 
(or the tax imposed by corresponding provisions of prior law) may elect, 
in the manner provided by paragraph (b) of this section, to be subject 
to the tax imposed by section 831, whether or not marine insurance is 
its predominant source of premium income. A company making an election 
under section 831(c) and this section

[[Page 735]]

will be subject to the tax imposed by section 831 for taxable years 
beginning after December 31, 1961, rather than subject to the tax 
imposed by section 821.
    (b) Time and manner of making election. The election provided by 
section 831(c) and paragraph (a) of this section shall be made in a 
statement attached to the taxpayer's return for the taxable year 1962. 
The statement shall indicate that the taxpayer has made the election 
provided by section 831(c) and this section; shall include the name and 
address of the taxpayer, and shall be signed by the taxpayer or his duly 
authorized representative. In addition, the statement shall list the 5 
consecutive taxable years prior to 1962 for which the taxpayer was 
subject to tax under section 831 (or the corresponding provisions of 
prior law); the types of insurance written by the company; and the 
percentage of marine insurance to total insurance written. The return 
and statement must be filed not later than the date prescribed by law 
(including extensions thereof) for filing the return for the taxable 
year 1962. However, if the last date prescribed by law (including 
extensions thereof) for filing the income tax return for the taxable 
year 1962 falls before October 17, 1963, the election provided by 
section 831(c) and this section may be made for such year by filing the 
statement and an amended return for such taxable year (and all 
subsequent taxable years for which returns have been filed) before 
January 16, 1964.
    (c) Scope of election. An election made under section 831(c) and 
paragraph (b) of this section shall be binding for all taxable years 
beginning after December 31, 1961, unless consent to revoke the election 
is obtained from the Commissioner. However, if a taxpayer made the 
election provided by section 831(c) and this section for taxable years 
beginning prior to October 17, 1963, the taxpayer may revoke such 
election without obtaining consent from the Commissioner by filing, 
before January 16, 1964, a statement that the taxpayer desires to revoke 
such election. Such statement shall be signed by the taxpayer or its 
duly authorized representative. An amended return reflecting such 
revocation must accompany the statement for all taxable years for which 
returns have been filed with respect to such election.
    (d) Limitation on certain net operating loss carryovers and 
carrybacks. In the case of a taxpayer making the election allowed under 
section 831(c) and this section, a net operating loss shall not be 
carried:
    (1) To or from any taxable year for which the insurance company is 
not subject to the tax imposed by section 831(a) (or predecessor 
sections); or
    (2) To any taxable year if, between the loss year and such taxable 
year, there is an intervening taxable year for which the insurance 
company was not subject to the tax imposed by section 831(a) (or 
predecessor sections).

[T.D. 6681, 28 FR 11128, Oct. 17, 1963]