§ 831. Tax on insurance companies other than life insurance companies
(a)
General rule
Taxes computed as provided in section
11 shall be imposed for each taxable year on the taxable income of every insurance company other than a life insurance company.
(b)
Alternative tax for certain small companies
(1)
In general
In lieu of the tax otherwise applicable under subsection (a), there is hereby imposed for each taxable year on the income of every insurance company to which this subsection applies a tax computed by multiplying the taxable investment income of such company for such taxable year by the rates provided in section
11
(b).
(2)
Companies to which this subsection applies
(A)
In general
This subsection shall apply to every insurance company other than life (including interinsurers and reciprocal underwriters) if—
(i)
the net written premiums (or, if greater, direct written premiums) for the taxable year do not exceed $1,200,000, and
The election under clause (ii) shall apply to the taxable year for which made and for all subsequent taxable years for which the requirements of clause (i) are met. Such an election, once made, may be revoked only with the consent of the Secretary.
(B)
Controlled group rules
(i)
In general
For purposes of subparagraph (A), in determining whether any company is described in clause (i) of subparagraph (A), such company shall be treated as receiving during the taxable year amounts described in such clause (i) which are received during such year by all other companies which are members of the same controlled group as the insurance company for which the determination is being made.
(d)
Cross references
(2)
For taxation of foreign corporations carrying on an insurance business within the United States, see section
842.
[1] So in original. Second closing parenthesis probably should not appear.