§806 — Repealed. Pub. L. 115–97, title I, § 13512(a), Dec. 22, 2017, 131 Stat. 2142]
16 cases·5 followed·1 overruled·10 cited—31% support
Statute Text — 26 U.S.C. §806
[§ 806. Repealed. Pub. L. 115–97, title I, § 13512(a), Dec. 22, 2017, 131 Stat. 2142] Section, added Pub. L. 98–369, div. A, title II, § 211(a), July 18, 1984, 98 Stat. 724; amended Pub. L. 99–514, title X, § 1011(a), (b)(5)–(8), (11)(A), Oct. 22, 1986, 100 Stat. 2388, 2389, related to small life insurance company deduction. A prior section 806, added Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 120; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to certain changes in reserves and assets, prior to the general revision of this part by Pub. L. 98–369, § 211(a). Another prior section 806, act Aug. 16, 1954, ch. 736, 68A Stat. 258, related to adjustment for certain reserves, prior to the general revision of this part by act Mar. 13, 1956, ch. 83, § 2, 70 Stat. 36. Statutory Notes and Related Subsidiaries Effective Date of RepealRepeal applicable to taxable years beginning after Dec. 31, 2017, see section 13512(c) of Pub. L. 115–97, set out as an Effective Date of 2017 Amendment note under section 453B of this title.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.806-3 Certain changes in reserves and assets
- Treas. Reg. §Treas. Reg. §1.806-3(a) In general.
- Treas. Reg. §Treas. Reg. §1.806-3(b) Manner in which adjustments shall be made—(1) Daily basis.
16 Citing Cases
Section 806 governs a tax deduction, while section 801 is a definitional provision.
806 provides in part: (a) Small Life Insurance Company Deduction.-- (1) In general.--* * * the small life insurance company deduction for any taxable year is 60 percent of so much of the tentative LICTI for such taxable year as does not exceed $3,000,000.
Life Insurance Company income tax returns claiming life insurance company treatment and deductions under section 806 in the amounts of $615,971 and $712,152, respectively.
Section 806 governs a tax deduction, while section 801 is a definitional provision. Deductions are a matter of legislative grace, to be construed strictly against taxpayers. Definitional provisions, like section 801, get a somewhat more liberal reading. United States v. Consumer Life Ins. Co., 430 U.S. 725, 752-53 n.38, 97 S.Ct. 1440, 1454 n. 38, 5
868 1990 2,626,873 1,971,888 1991 2,590,894 1,807,293 1992 3,189,966 2,079,715 b. Notices of Deficiency Petitioner’s 1989 through 1992 Forms 1120L, U.S. Life Insurance Company Income Tax Return, reported small life insurance company deductions (see sec. 806) of $1,770,350, $1,792,007, $1,361,574, and $1,109,638, respectively. Respondent disallowed these deductions. According to the 1993 notice: Your reinsurance agreement with Guardian Life Insurance Company of America has a significant tax avoid
1520, 1598), is to help taxpayers best use their NOLs. Thus, IQH concludes, the requirements for the carryback waiver should be construed to be as taxpayer friendly as possible. However, we must give effect to Congress’s official pronouncement that the election “shall be made in such manner as may be prescribed by the Secretary”