§ 811. Accounting provisions
(a)
Method of accounting
All computations entering into the determination of the taxes imposed by this part shall be made—
(2)
to the extent permitted under regulations prescribed by the Secretary, under a combination of an accrual method of accounting with any other method permitted by this chapter (other than the cash receipts and disbursements method).
To the extent not inconsistent with the preceding sentence or any other provision of this part, all such computations shall be made in a manner consistent with the manner required for purposes of the annual statement approved by the National Association of Insurance Commissioners.
(b)
Amortization of premium and accrual of discount
(1)
In general
The appropriate items of income, deductions, and adjustments under this part shall be adjusted to reflect the appropriate amortization of premium and the appropriate accrual of discount attributable to the taxable year on bonds, notes, debentures, or other evidences of indebtedness held by a life insurance company. Such amortization and accrual shall be determined—
(c)
No double counting
Nothing in this part shall permit—
(d)
Method of computing reserves on contract where interest is guaranteed beyond end of taxable year
For purposes of this part (other than section
816), amounts in the nature of interest to be paid or credited under any contract for any period which is computed at a rate which—
(1)
exceeds the greater of the prevailing State assumed interest rate or applicable Federal interest rate in effect under section
807 for the contract for such period, and
shall be taken into account in computing the reserves with respect to such contract as if such interest were guaranteed only up to the end of the taxable year.
(e)
Short taxable years
If any return of a corporation made under this part is for a period of less than the entire calendar year (referred to in this subsection as “short period”), then section
443 shall not apply in respect to such period, but life insurance company taxable income shall be determined, under regulations prescribed by the Secretary, on an annual basis by a ratable daily projection of the appropriate figures for the short period.