
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC844]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
                    Subchapter L--Insurance Companies
 
               PART III--PROVISIONS OF GENERAL APPLICATION
 
Sec. 844. Special loss carryover rules


(a) General rule

    If an insurance company--
        (1) is subject to the tax imposed by part I or II of this 
    subchapter for the taxable year, and
        (2) was subject to the tax imposed by a different part of this 
    subchapter for a prior taxable year,

then any operations loss carryover under section 810 (or the 
corresponding provisions of prior law) or net operating loss carryover 
under section 172 (as the case may be) arising in such prior taxable 
year shall be included in its operations loss deduction under section 
810(a) or net operating loss deduction under section 832(c)(10), as the 
case may be.

(b) Limitation

    The amount included under section 810(a) or 832(c)(10) (as the case 
may be) by reason of the application of subsection (a) shall not exceed 
the amount that would have constituted the loss carryover under such 
section if for all relevant taxable years the company had been subject 
to the tax imposed by the part referred to in subsection (a)(1) rather 
than the part referred to in subsection (a)(2). For purposes of applying 
the preceding sentence, section 810(b)(1)(C) (relating to additional 
years to which losses may be carried by new life insurance companies) 
shall not apply.

(c) Regulations

    The Secretary shall prescribe such regulations as may be necessary 
to carry out the purposes of this section.

(Added Pub. L. 91-172, title IX, Sec. 907(c)(1), Dec. 30, 1969, 83 Stat. 
716; amended Pub. L. 94-455, title XIX, Secs. 1901(b)(25), 
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1798, 1834; Pub. L. 98-369, div. 
A, title II, Sec. 211(b)(11), July 18, 1984, 98 Stat. 755; Pub. L. 99-
514, title X, Sec. 1024(c)(12), title XVIII, Sec. 1899A(20), Oct. 22, 
1986, 100 Stat. 2408, 2959; Pub. L. 101-239, title VII, 
Sec. 7841(d)(16), Dec. 19, 1989, 103 Stat. 2429.)


                               Amendments

    1989--Subsec. (a)(2). Pub. L. 101-239 substituted ``a prior taxable 
year'' for ``the taxable year''.
    1986--Subsec. (a). Pub. L. 99-514, Sec. 1024(c)(12), added subsec. 
(a) and struck out former subsec. (a) which read as follows: ``If an 
insurance company--
        ``(1) is subject to the tax imposed by part I, II, or III of 
    this subchapter for the taxable year, and
        ``(2) was subject to the tax imposed by a different part of this 
    subchapter for a prior taxable year beginning after December 31, 
    1962,
then any operations loss carryover under section 810 (or the 
corresponding provisions of prior law), unused loss carryover under 
section 825, or net operating loss carryover under section 172, as the 
case may be, arising in such prior taxable year shall be included in its 
operations loss deduction under section 810(a), unused loss deduction 
under section 825(a), or net operating loss deduction under section 
832(c)(10), as the case may be.''
    Pub. L. 99-514, Sec. 1899A(20), substituted ``prior law), unused 
loss'' for ``prior law),, unused loss'' in concluding provisions.
    Subsec. (b). Pub. L. 99-514, Sec. 1024(c)(12), added subsec. (b) and 
struck out former subsec. (b) which read as follows: ``The amount 
included under section 810(a), 825(a), or 832(c)(10), as the case may 
be, by reason of the application of subsection (a) shall not exceed the 
amount that would have constituted the loss carryover under such section 
if for all relevant taxable years such company had been subject to the 
tax imposed by the part referred to in subsection (a)(1) rather than the 
part referred to in subsection (a)(2). For purposes of applying the 
preceding sentence--
        ``(1) in the case of a mutual insurance company which becomes a 
    stock insurance company, an amount equal to 25 percent of the 
    deduction under section 832(c)(11) (relating to dividends to 
    policyholders) shall not be allowed, and
        ``(2) section 810(b)(1)(C) (relating to additional years to 
    which losses may be carried by new life insurance companies) shall 
    not apply.''
    1984--Subsec. (a). Pub. L. 98-369, Sec. 211(b)(11)(A), substituted 
``section 810 (or the corresponding provisions of prior law),'' for 
``section 812'' and ``section 810(a)'' for ``section 812(a)'' in 
provisions following par. (2).
    Subsec. (b). Pub. L. 98-369, Sec. 211(b)(11)(B), substituted 
``section 810(a)'' for ``section 812(a)'' in introductory provisions, 
and ``section 810(b)(1)(C)'' for ``section 812(b)(1)(C)'' in par. (2).
    1976--Subsec. (b)(2). Pub. L. 94-455, Sec. 1901(b)(25), substituted 
``section 812(b)(1)(C)'' for ``section 812(b)(1)(A)(iii)''.
    Subsec. (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out ``or 
his delegate'' after ``Secretary''.


                    Effective Date of 1986 Amendment

    Amendment by section 1024(c)(12) of Pub. L. 99-514 applicable to 
taxable years beginning after Dec. 31, 1986, see section 1024(e) of Pub. 
L. 99-514, set out as a note under section 831 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 applicable to taxable years beginning 
after Dec. 31, 1983, see section 215 of Pub. L. 98-369, set out as an 
Effective Date note under section 801 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 1901(b)(25) of Pub. L. 94-455, effective for 
taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. 
L. 94-455, set out as a note under section 2 of this title.


                             Effective Date

    Section 907(d) of Pub. L. 91-172 provided that: ``The amendments 
made by subsection (a) [amending sections 805 and 810 of this title] 
shall apply to taxable years beginning after December 31, 1957. The 
amendments made by subsection (b) [amending section 815 of this title] 
shall apply to taxable years beginning after December 31, 1968. The 
amendments made by subsection (c) [enacting this section and amending 
sections 809, 823, and 825 of this title] shall apply with respect to 
losses incurred in taxable years beginning after December 31, 1962, but 
shall not affect any tax liability for any taxable year beginning before 
January 1, 1967.''


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1800-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 805, 831 of this title.
