[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR46.4374-1]

[Page 47]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 46_EXCISE TAX ON POLICIES ISSUED BY FOREIGN INSURERS AND OBLIGATIONS 
NOT IN REGISTERED FORM--Table of Contents
 
          Subpart B_Tax on Policies Issued by Foreign Insurers
 
Sec. 46.4374-1  Liability for tax.

    (a) In general. Any person who makes, signs, issues, or sells any of 
the documents and instruments subject to the tax, or for whose use or 
benefit the same are made, signed, issued, or sold, shall be liable for 
the tax imposed by section 4371. For purposes of this section, in the 
case of a reinsurance policy that is subject to the tax imposed by 
section 4371(3), other than assumption reinsurance, the insured person 
on the underlying insurance policy, the risk of which is covered in 
whole or in part by such reinsurance policy, shall not constitute a 
person for whose use or benefit the reinsurance policy is made, signed, 
issued, or sold.
    (b) When liability for tax attaches. The liability for the tax 
imposed by section 4371 shall attach at the time the premium payment is 
transferred to the foreign insurer or reinsurer (including transfers to 
any bank, trust fund, or similar recipient, designated by the foreign 
insurer or reinsurer), or to any nonresident agent, solicitor, or 
broker. A person required to pay tax under this section may remit such 
tax before the time the tax attaches if he keeps records consistent with 
such practice.
    (c) Payment of tax. The tax imposed by section 4371 shall be paid on 
the basis of a return by the person who makes payment of the premium to 
a foreign insurer or reinsurer or to any nonresident agent, solicitor, 
or broker. If the tax is not paid by the person who paid the premium, 
the tax imposed by section 4371 shall be paid on the basis of a return 
by any person who makes, signs, issues, or sells any of the documents or 
instruments subject to the tax imposed by section 4371, or for whose use 
or benefit such document or instrument is made, signed, issued, or sold.
    (d) Penalty for failure to pay tax. Any person who fails to comply 
with the requirements of this section with intent to evade the tax 
shall, in addition to other penalties provided therefor, pay a fine of 
double the amount of tax. (See section 7270.)
    (e) Effective date. This section is applicable for premiums paid on 
or after November 27, 2002.

[T.D. 9024, 67 FR 70846, Nov. 27, 2002]