26 U.S. Code § 4371 - Imposition of tax

prev | next
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:
(1) Casualty insurance and indemnity bonds
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);
(2) Life insurance, sickness, and accident policies, and annuity contracts
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
(3) Reinsurance
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).

Source

(Aug. 16, 1954, ch. 736, 68A Stat. 521; Mar. 13, 1956, ch. 83, § 5(9),70 Stat. 49; Pub. L. 85–859, title I, § 141(a),Sept. 2, 1958, 72 Stat. 1300; Pub. L. 86–69, § 3(f)(3),June 25, 1959, 73 Stat. 140; Pub. L. 89–44, title VIII, § 804(b),June 21, 1965, 79 Stat. 160; Pub. L. 94–455, title XIX, § 1904(a)(12),Oct. 4, 1976, 90 Stat. 1812; Pub. L. 98–369, div. A, title II, § 211(b)(23),July 18, 1984, 98 Stat. 757; Pub. L. 100–203, title X, § 10242(c)(3),Dec. 22, 1987, 101 Stat. 1330–423; Pub. L. 101–239, title VII, § 7811(i)(11),Dec. 19, 1989, 103 Stat. 2411.)
Constitutionality

For information regarding constitutionality of section 4371 of act Aug. 16, 1954, see Congressional Research Service, The Constitution of the United States of America: Analysis and Interpretation, Appendix 1, Acts of Congress Held Unconstitutional in Whole or in Part by the Supreme Court of the United States.
Amendments

1989—Par. (2). Pub. L. 101–239struck out “, unless the insurer is subject to tax under section 842 (b)” after “or annuity contract”.
1987—Par. (2). Pub. L. 100–203substituted “section 842 (b)” for “section 813”.
1984—Par. (2). Pub. L. 98–369substituted “section 813” for “section 819”.
1976—Pub. L. 94–455substituted in par. (1) “4 cents” for “four cents” and “premium paid” for “premium charged”, in pars. (2) and (3) “1 cent” for “one cent” and “premium paid” for “premium charged”, and struck out provision following par. (3) relating to computation of tax on premium paid in lieu of premium charged.
1965—Pub. L. 89–44inserted last sentence relating to computation of tax on premium paid in lieu of premium charged.
1959—Par. (2). Pub. L. 86–69substituted “section 819” for “section 816”.
1958—Pub. L. 85–859substituted “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” for “shall be imposed a tax on each policy of insurance, indemnity bond, annuity contract, or policy of reinsurance issued by any foreign insurer or reinsurer”.
1956—Par. (2). Act Mar. 13, 1956, substituted “section 816” for “section 807”.
Effective Date of 1989 Amendment

Amendment by Pub. L. 101–239effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 ofPub. L. 101–239, set out as a note under section 1 of this title.
Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203applicable to taxable years beginning after Dec. 31, 1987, see section 10242(d) ofPub. L. 100–203, set out as a note under section 816 of this title.
Effective Date of 1984 Amendment

Amendment by Pub. L. 98–369applicable to taxable years beginning after Dec. 31, 1983, see section 215 ofPub. L. 98–369, set out as an Effective Date note under section 801 of this title.
Effective Date of 1976 Amendment

Amendment by Pub. L. 94–455effective on first day of first month which begins more than 90 days after Oct. 4, 1976, see section 1904(d) ofPub. L. 94–455, set out as a note under section 4041 of this title.
Effective Date of 1965 Amendment

Amendment by Pub. L. 89–44applicable with respect to policies, bonds, and contracts with respect to which the tax imposed by this section is required to be paid on the basis of a return, see section 804(c) ofPub. L. 89–44, set out as a note under section 4374 of this title.
Effective Date of 1959 Amendment

Amendment by Pub. L. 86–69applicable only with respect to taxable years beginning after Dec. 31, 1957, see section 4 ofPub. L. 86–69, set out as an Effective Date note under section 381 of this title.
Effective Date of 1958 Amendment

Amendment by Pub. L. 85–859effective on first day of first calendar quarter which begins more than 60 days after Sept. 2, 1958, see section 1(c) ofPub. L. 85–859, Sept. 2, 1958, 72 Stat. 1275.
Effective Date of 1956 Amendment

Amendment by act Mar. 13, 1956, applicable only to taxable years beginning after Dec. 31, 1954, see section 6 of act Mar. 13, 1956, set out as a note under section 316 of this title.

Written determinations for this section

These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.

Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.

Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.

We truncate results at 20000 items. After that, you're on your own.

 

LII has no control over and does not endorse any external Internet site that contains links to or references LII.