102 STAT. 3454
PUBLIC LAW 100-647—NOV. 10, 1988 "(4) APPLICATION OF FRESH START TO COMPANIES WHICH BECOME
SUBJECT TO SECTION 831(a) TAX IN LATER TAXABLE YEAR.—If—
"(A) an insurance company was not subject to tax under section 831(a) of the Internal Revenue Code of 1986 for its 1st taxable year beginning after December 31, 1986, by reason of being— "(i) subject to tax under section 831(b) of such Code, or "(ii) described in section 501(c) of such Code and exempt from tax under section 501(a) of such Cktde, and "(B) such comparty becomes subject to tax under such section 831(a) for any later taxable year, paragraph (2) and subparagraphs (A) and (C) of paragraph (3) shall be applied by treating such later taxable year as its 1st taxable year beginning after December 31, 1986, and by treating the calendar year in which such later taxable year begins as 1987; and paragraph (3)(B) shall not apply." (f) AMENDMENTS RELATED TO SECTION 1024 OF THE REFORM ACT.—
(1) Subparagraph (A) of section 831(b)(2) of the 1986 Code (relating to companies to which alternative tax applies) is amended by adding at the end thereof the following new sentence: "The election under clause (ii) shall apply to the taxable year for which made and for all subsequent taxable years for which the requirements of clause (i) are met. Such an election, once made, may be revoked only with the consent of the Secretary." (2) Subsection (a) of section 835 of the 1986 Code (relating to election by reciprocal) is amended by striking out "section 821(a)" and inserting in lieu thereof "section 831(a)". (3) Subsection (f) of section 835 of the 1986 Code is amended by striking out "subsection (e)" and inserting in lieu thereof "subsection (d)". (4) Paragraph (6) of section 2430?) of the 1986 Code (relating to special rules for insurance companies) is amended by striking out "or 821". (5) Subsection (c) of section 543 of the 1986 Code (relating to gross income of insurance companies other than life or mutual) is amended— (A) by striking out "OR MUTUAL" in the heading and
inserting in lieu thereof "INSURANCE CJOMPANIES", and (B) by striking out "life or mutual" in the text and inserting in lieu thereof "a life insurance company". (6) Subsection (g) of section 816 of the 1986 Code (relating to burial and funeral benefit insurance companies) is amended by striking out "section 821 or". (7) The table of sections for part II of subchapter L of chapter 1 of the 1986 Code (relating to other insurance companies) is amended by striking out the item relating to section 831 and inserting in lieu thereof the following new item: "Sec. 831. Tax on insurance companies other than life companies."
26 USC 831 note.
insurance
(8) Paragraph (1) of section 1024(d) of the Reform Act is amended by adding at the end thereof the following new sentence: "In the case of a company taxable under section 831(b) of the Internal Revenue Code of 1986 (as amended by subsection
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