Reg. § 1.831-1 Tax on insurance companies (other than life or mutual), mutual marine insurance companies, and mutual fire insurance companies issuing perpetual policies.
(a) All insurance companies, other than life or mutual or foreign insurance companies not carrying on an insurance business within the United States, and all mutual marine insurance companies and mutual fire insurance companies exclusively issuing either perpetual policies, or policies for which the sole premium charged is a single deposit which, except for such deduction of underwriting costs as may be provided, is refundable upon cancellation or expiration of the policy, are subject to the tax imposed by section . As used in this section and and , the term “insurance companies” means only those companies which qualify as insurance companies under the definition provided by and which are subject to the tax imposed by section .
(b) All provisions of the Code and of the regulations in this part not inconsistent with the specific provisions of section are applicable to the assessment and collection of the tax imposed by section , and insurance companies are subject to the same penalties as are provided in the case of returns and payment of income tax by other corporations.
(c) Since section provides that the underwriting and investment exhibit of the annual statement approved by the National Convention of Insurance Commissioners shall be the basis for computing gross income and since the annual statement is rendered on the calendar year basis, the returns under section shall be made on the basis of the calendar year and shall be on Form 1120. Insurance companies are entitled, in computing insurance company taxable income, to the deductions provided in part VIII (section and following), subchapter B, chapter 1 of the Code.
(d) Foreign insurance companies not carrying on an insurance business within the United States are not taxable under section but are taxable as other foreign corporations. See section .
(e) Insurance companies are subject to both normal tax and surtax. The normal tax shall be computed as provided in section and the surtax shall be computed as provided in section . For the circumstances under which the $25,000 exemption from surtax for certain taxable years may be disallowed in whole or in part, see section . For alternative tax where the net long-term capital gain for any taxable year exceeds the net short-term capital loss, see section and the regulations thereunder.