Page:United States Statutes at Large Volume 84 Part 2.djvu/742

 2072

PUBLIC LAW91-688-JAN. 12, 1971

[84 STAT.

Public Law 91-688 January 12, 1971 [H. R.19881]

Tax returns. Life insurance companies. 73 Stat. 133. 26 USC 818.

AN ACT Relating to consolidated returns of life insurance companies, and for other purposes.

Be it enacted by the Senate and House of Repremrdatlves of the United States of America in Congress assembled, That (a) section 818 of the Internal Revenue Code of 1954 (relating to life insurance company accounting provisions) is amended by adding at the end thereof the following new subsection: " (g) COMPUTATION ON CONSOLIDATED RETURNS OF POLICYHOLDERS' SHARE OF INVESTMENT YIELD.—For purposes of this part, in the case

68A Stat, 367.

73 Stat. 115.

68A Stat. 8 49. Refund or c redit allowance

of a life insurance company filing or required to file a consolidated return under section 1501 for a taxable year, the computations of the policyholders' share of investment yield under subparts B and C (including all determinations and computations incident thereto) shall be made as if such company were not filing a consolidated return." (b) The amendment made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1957. SEC. 2. (a) If— (1) any insurance company subject to taxation under section 802 of the Internal Revenue Code of 1954 filed a consolidated return under section 1501 of such Code for any taxable year beginning after December 31, 1957, and ending before March 13, 1969, and (2) not later than one year after the date of the enactment of this Act— (A) such company elects (in such manner as the Secretary of the Treasury or his delegate may prescribe) to have this section apply, (B) such company files consents to the application of this section of all companies which at any time during any taxable year beginning after December 31, 1957, and ending before March 13, 1969, were members of the same affiliated group as such company, and (C) such company (and each company referred to in subparagraph (B)) files a separate return for the first taxable year beginning after December 31, 1957, for which such company filed a consolidated return and for each taxable year thereafter ending before the date of the enactment of this Act, then notwithstanding any law or rule of law the requirement of filing a consolidated return shall be replaced by a requirement of separate returns for each company referred to in paragraph (2)(C) for each taxable year to which paragraph (2)(C) applies with respect to such company. Paragraph (2)(C) shall not apply with respect to any company for any taxable year the allowance of a credit for which is barred on the date of the enactment of this Act by res judicata or through the operation of section 7121 or section 7122 of the Internal Revenue Code of 1954. (b) If the making or allowance of any refund or credit, or the assessment of any deficiency, of income tax for any taxable year to which subsection (a)(2)(C) applies is prevented before the expiration of 2 years after the date of the enactment of this Act by any law or rule of law (other than sections 7121 and 7122 of such Code and other than res judicata), such refund or credit may nevertheless be made or allowed, and such deficiency may nevertheless be assessed.

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