§4371 — Imposition of tax
5 cases·1 followed·1 limited·3 cited—20% support
Statute Text — 26 U.S.C. §4371
There is hereby imposed, on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer, a tax at the following rates:
4 cents on each dollar, or fractional part thereof, of the premium paid on the policy of casualty insurance or the indemnity bond, if issued to or for, or in the name of, an insured as defined in section 4372(d);
1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of life, sickness, or accident insurance, or annuity contract; and
1 cent on each dollar, or fractional part thereof, of the premium paid on the policy of reinsurance covering any of the contracts taxable under paragraph (1) or (2).
Treasury Regulations
- Treas. Reg. §Treas. Reg. §46.4371-1 Applicability of subpart
- Treas. Reg. §Treas. Reg. §46.4371-2 Imposition of tax on policies issued by foreign insurers; scope of tax
- Treas. Reg. §Treas. Reg. §46.4371-2(a) Certain insurance policies, and indemnity, fidelity, or surety bonds.
- Treas. Reg. §Treas. Reg. §46.4371-2(b) Life insurance, sickness, and accident policies, and annuity contracts.
- Treas. Reg. §Treas. Reg. §46.4371-2(c) Reinsurance.
- Treas. Reg. §Treas. Reg. §46.4371-2(d) Exempt indemnity bonds.
- Treas. Reg. §Treas. Reg. §46.4371-3 Rate and computation of tax
- Treas. Reg. §Treas. Reg. §46.4371-3(a) Rate of tax.
- Treas. Reg. §Treas. Reg. §46.4371-3(b) Meaning of premium payment.
- Treas. Reg. §Treas. Reg. §46.4371-4 Records required with respect to foreign insurance policies
- Treas. Reg. §Treas. Reg. §46.4371-4(a) Each person required under the provisions of § 46.
- Treas. Reg. §Treas. Reg. §46.4371-4(b) The records required under the provisions of this section must be kept on file at the place of business or at some other convenient location, for a period of at least 3 years from the date any part of the tax became due or the date any part of the tax is paid, whichever is later, in such manner as to be readily accessible to authorized internal revenue officers or employees.
5 Citing Cases
But we read Howkins more narrowly; we reasoned there that alimony i s ie Container makes an alternative argument that Vitro's guaranty was in the nature of a surety bond and is subject .to tax under section 4371 and not section 881(a), 1441, or 1442 .
items attached to the seabed. Petitioner's reliance on two other revenue rulings involving excise taxes is similarly misplaced. See Rev. Rul. 77-197, 1977-1 C.B. 344 (addressing sections 4261 and 4371); Rev. Rul. 56-505, 1956-2 C.B. 891 (addressing section 4371). - 27 - Petitioner seeks support for its position from a ruling it received from the Department ofHomeland Security, U.S. Customs and Border Protection (CBP). Under the Jones Act and related Federal laws, foreign ships like the Challeng
Container makes an alternative argument that Vitro’s guaranty was in the nature of a surety bond and is subject to tax under section 4371 and not section 881(a), 1441, or 1442.
Amount in Dispute On its 1984 Federal income tax return, petitioner deducted the estimated premium of $14,241,915 it paid to Liberty Mutual - 51 - for California workers' compensation coverage. By December 31, 1984, petitioner had incurred workers' compensation losses in California that had been paid by Liberty Mutual in the amoun