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TITLE 26-INTERNAL REVENUE CODE CROSS REFEmNCEs Certain exchanges of insurance policies, see section 1035 of this title. SECTION REFER]xD TO IN OTHER SECTIONS This section is referred to in sections 11, 243, 453, 594, 805, 810, 818, 819, 820, 832, 1035 of this title. § 802. Tax imposed (a) Tax imposed (1) In general A tax is hereby imposed for each taxable year on the life insurance company taxable income of every life insurance company. Such tax shall consist of a normal tax and surtax computed as provided in section 11 as though the life insurance company taxable income were the taxable income referred to in section 11. (2) Alternative tax in case of capital gains If for any taxable year any life insurance company has a net capital gain, then, in lieu of the tax imposed by paragraph (1), there is hereby imposed a tax (if such tax is less than the tax imposed by such paragraph) which shall consist of the sum of- (A) a partial tax, computed as provided by paragraph (1), on the life insurance compa- ny taxable income determined by reducing the taxable investment income, and the gain from operations, by the amount of such net capital gain, and (B) an amount determined as provided in section 1201(a) on such net capital gain. (b) Life insurance company taxable income defined For purposes of this part, the term "life in- surance company taxable income" means the sum of- (1) the taxable investment income (as de- fined in section 804) or, if smaller, the gain from operations (as defined in section 809), (2) if the gain from operations exceeds the taxable investment income, an amount equal to 50 percent of such excess, plus (3) the amount subtracted from the policy- holders surplus account for the taxable year, as determined under section 815. (Added Pub. L. 86-69, § 2(a), June 25, 1959, 73 Stat. 115, and amended Pub. L. 87-858, § 3(b)(1), Oct. 23, 1962, 76 Stat. 1136; Pub. L. 88-272, title II, § 235(c)(1), Feb. 26, 1964, 78 Stat. 126; Pub. L. 91-172, title V, §511(c)(1), Dec. 30, 1969, 83 Stat. 637; Pub. L. 94-455, title XIX, § 1901(a)(95), (b)(33)(E), Oct. 4, 1976, 90 Stat. 1780, 1801.) PRIOR PROVISIONS A prior section 802, acts Aug. 16, 1954, ch. 736, 68A Stat. 255; Mar. 13, 1956, ch. 83, § 2, 70 Stat. 38; July 24, 1956, ch. 696, §§ 1, 2(b), 70 Stat. 633; Mar. 17, 1958. Pub. L. 85-345, §§ 1, 2(a), 72 Stat. 36, contained provi- sion similar to this sect'un prior to the general revi- sion of this part by Pub. L. 86-69, § 2(a). A prior section 803, acts Aug, 16, 1954, ch. 736, 68A Stat. 256; Mar. 13, 1956, ch. 83, § 2, 70 Stat. 39, which related to income and deductions in the case of life in- surance companies, was omitted from this part by Pub. L. 86-69, § 2(a), June 25, 1959, 73 Stat. 112, which amended this part in its entirety. See section 804 of this title. AMENDMENTS 1976-Subsec. (a)(1). Pub. L. 94-455, § 1901(a)(95)(A), struck out "beginning after December 31, 1957," fol- lowing "for each taxable year". Subsec. (a)(2). Pub. L. 94-455, § 1901(a)(95)(B), (b)(33)(E), in provisions preceding subpar. (A) struck out "beginning after December 31, 1961" folloring "any taxable year" and substituted "any life insurance company has a net capital gain" for "the net long- term capital gain of any life insurance company ex- ceeds the net short-term capital loss" and in subpars. (A) and (B) substituted "such net capital gain" for "such excess". Subsec. (a)(3). Pub. L. 94-455. § 1901(a)(95)(C), struck out subsec. (a)(3) which related to a special rule for 1959 and 1960. 1969-Subsec. (a)(2)(B). Pub. L. 91-172 substituted "(B) an amount determined as provided in section 1201(a) on such excess" for "(B) an amount equal to 25 percent of such excess". 1964-Subsec. (a)(1). Pub. L. 88-272 substituted pro- visions that the tax shall consist of a normal tax and surtax computed as provided in section 11 as though the life insurance company taxable income were the income referred to in section 11, for provisions that it consist of a normal tax computed at the rate provided by section 11(b) and a surtax on the income which ex- ceeds $25,000 computed at the rate provided by section 11(c). 1962-Subsec. (a)(2). Pub. L. 87-858 added "Alterna- tive tax" to the heading of par. (2) and substituted in such par. (2) "1961" for "1958" and provisions impos- ing a tax consisting of the sum of "(A) a partial tax, computed as provided by paragraph (1), on the life in- surance company taxable income determined by re- ducing the taxable investment income, and the gain from operations, by the amount of such excess, and (B) an amount equal to 25 percent of such excess" for "there is hereby imposed a tax equal to 25 percent of such excess", EFFECTIVE DATE OF 1976 AMENDMENT Amendment of subsec. (a)(1), (2), (3) by section 1901(a)(95)(A), (B), (C), (b)(33)(E) of Pub. L. 94-455 ef- fective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Ef- fective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1969 AMENDMENT Amendment by Pub. L. 91-172 applicable with re- spect to taxable years beginning after Dec. 31, 1969, see section 511(d) of Pub. L. 91-172, set out as an Ef- fective Date note under section 1201 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88-272 applicable to taxable years ending after Dec. 31, 1963, see section 235(d) of Pub. L. 88-272 set out a an Effective Date of 1964 Amendment note under section 1551 of this title. EFFECTIVE DATE OF 1962 AMENDMENT Amendnent by Pub. L. 87-858 applicable with re- spect to taxable years beginning after Dec. 31, 1961, see section 3(f) of Pub. L. 87-858, set out as an Effec- tive Date of 1962 Amendment note under section 801 of this title. EFFECTIVE DATE Section applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 of Pub. L. 86-69, set out as an Effective Date note under section 801 of this title. FILING OF INCOME TAX RE'tuRNS FOR 1958 Every life insurance company subject to the tax im- posed by this section required to make a return after June 25, 1959, and on or before Sept. 15, 1959 for its taxable year beginning in 1958, see section 3(i) of Pub. § 802 Page 498