Page:United States Statutes at Large Volume 96 Part 1.djvu/584

 96 STAT. 542

26 USC 811. Ante, p. 534.

PUBLIC LAW 97-248—SEPT. 3, 1982 (A) IN GENERAL.—In the case of any taxable year beginning before January 1, 1982, if a taxpayer, on his r e t u r n of tax for such taxable year, treated— (i) any a m o u n t described in subparagraph (B) as a n a m o u n t which was not a dividend to policyholders (within the m e a n i n g of section 811 of the I n t e r n a l Revenue Code of 1954), or (ii) any a m o u n t described in subparagraph (C) a s not described in section 809(c)(1), the n such a m o u n t s shall be so t r e a t e d for purposes of the I n t e r n a l Revenue Code of 1954. (B) CERTAIN INTEREST.—An a m o u n t is described in this subparagraph if such a m o u n t is in the n a t u r e of interest accrued for the taxable year on a n insurance or a n n u i t y contract pursuant to— (i) a n interest r a t e g u a r a n t e e d or fixed before the period of payment of such a m o u n t begins, or (ii) any other method (fixed before such period begins) the term s of which during the period a r e beyond the control and a r e independent of the experience of the company, w h e the r or not the interest r a t e or other method was g u a r a n t e e d or fixed for any specified period of time. (C) A M O U N T S NOT TREATED AS P R E M I U M S. — A n a m o u n t is

described in this subparagraph if such a m o u n t represents the difference between— (i) the a m o u n t of p r e m i u m s received or mortality charges made under r a t e s fixed in advance of the premium or mortality charge due date, and (ii) the maximum p r e m i u m or mortality charge which could be charged under the term s of the insurance or a n n u i t y contract. (D) N o INFERENCE.—The provisions of this paragraph shall constitute no inference with respect to the t r e a t m e n t of any item in taxable years beginning after December 31, 1981. (2) CONSOLIDATED R E T U R N S. — The provisions of section 818(0 of

such Code, as amended by section 262, shall apply to any taxable year beginning before January 1, 1982, if the tax p a y e r filed a consolidated r e t u r n before July 1, 1982 for such taxable year under section 1501 of such Code which, on such date (determined without regard to any amended r e t u r n filed after June 30, 1982), was consistent with the provisions of section 818(f) of such Code, as so amended. In the case of a taxable year beginning in 1981, the preceding sentence shall be applied by substituting "September 16" for " July 1" and "September 15" for " June 30". (3) TAXABLE YEARS WHERE PERIOD OF LIMITATION HAS R U N. —

This subsection shall not apply to any taxable year with respect to which the statute of limitations for filing a claim for credit or refund has expired under any provision of law or by operation of law.

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