Page:United States Statutes at Large Volume 96 Part 1.djvu/576

 96 STAT. 534

26 USC 809.

Ante, p. 533. Ante, p. 533. 26 USC 809 note.

PUBLIC LAW 97-248—SEPT. 3, 1982 "(2) with respect to which the reinsurer reimbursed the reinsured under the terms of such contract. The amount determined under the preceding sentence shall be properly adjusted to reflect the adjustments under subsection (b)(1)." (2) The first sentence of section 809(c)(1) (relating to premiums) is amended to read as follows: "The gross amount of premiums and other consideration, including— "(A) advance premiums, "(B) deposits, "(C) fees, "(D) assessments, "(E) consideration in respect of assuming liabilities under contracts not issued by the taxpayer, and "(F) the amount of dividends to policyholders reimbursed to the taxpayer by a reinsurer in respect of reinsured policies, on insurance and annuity contracts (including contracts supplementary thereto); less return premiums, and premiums and other consideration arising out of reinsurance ceded." (3) Section 809(d)(3) (relating to dividends to policyholders) is amended by inserting ", other than the deduction provided under paragraph (12)" before the period at the end thereof. (4) Section 809(d) (relating to deductions in computing gain and loss from operations) is amended by adding after paragraph (11) thereof the following new paragraph: "(12) DIVIDENDS REIMBURSED.—The deduction for the amount of dividends to policyholders reimbursed by the taxpayer to another insurance company in respect of policies the taxpayer has reinsured (determined under section 811(c))." (5) The table of sections for subpart E of part I of subchapter L of chapter 1 is amended by striking out the item relating to section 820. (c) EFFECTIVE D A T E S. —

(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1981. (2) RULES APPLICABLE TO TAXABLE YEARS BEGINNING BEFORE JANUARY 1, 1982.—

(A) IN GENERAL.—In the case of any taxable year beginning before January 1, 1982— (i) any determination as to whether any contract met the requirements of subsection (b) of section 820 of the Internal Revenue Code of 1954 (as in effect before its repeal by this section) shall be made solely by reference to the terms of the contract, and (ii) the treatment of such contract under subsection (c) of such section 820 shall be made in accordance with the regulations under such section which were in effect on December 31, 1981. (B) PARAGRAPH NOT TO APPLY IF FRAUD INVOLVED.—The

provisions of subparagraph (A) shall not apply with respect to any deficiency which the Secretary of the Treasury or his delegate establishes was due to fraud with intent to evade tax.

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