Internal Revenue Code · 26 U.S.C.

§ 811. Accounting provisions

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 811

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Added: July 18, 1984 by Pub. L. 98–369
Last amended: December 22, 2017 by Pub. L. 115–97
Amendments: 2 dated changes in the source credit
Length: 5 subsections · 638 words · about 3 min to read
Cross-references: cites 6; cited by 7 Code sections and 12 other regulations
Regulations: 3 issued under this section

¶(a) Method of accounting All computations entering into the determination of the taxes imposed by this part shall be made—

¶(1) under an accrual method of accounting, or

¶(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—

¶(A) in accordance with the method regularly employed by such company, if such method is reasonable, and

¶(B) in all other cases, in accordance with regulations prescribed by the Secretary.

¶(2) Special rules

¶(A) Amortization of bond premium

In the case of any bond (as defined in section 171(d)), the amount of bond premium, and the amortizable bond premium for the taxable year, shall be determined under section 171(b) as if the election set forth in section 171(c) had been made.

¶(B) Convertible evidence of indebtedness

In no case shall the amount of premium on a convertible evidence of indebtedness include any amount attributable to the conversion features of the evidence of indebtedness.

¶(3) Exception No accrual of discount shall be required under paragraph (1) on any bond (as defined in section 171(d)), except in the case of discount which is—

¶(A) interest to which section 103 applies, or

¶(B) original issue discount (as defined in section 1273).

¶(c) No double counting Nothing in this part shall permit—

¶(1) a reserve to be established for any item unless the gross amount of premiums and other consideration attributable to such item are required to be included in life insurance gross income,

¶(2) the same item to be counted more than once for reserve purposes, or

¶(3) any item to be deducted (either directly or as an increase in reserves) more than once.

¶(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 interest rate in effect under section 808(g) for the contract for such period, and

¶(2) is guaranteed beyond the end of the taxable year on which the reserves are being computed,

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.

(Added and amended Pub. L. 98–369, div. A, title I, § 42(a)(8), title II, § 211(a), July 18, 1984, 98 Stat. 557, 740; Pub. L. 100–647, title II, § 2004(p)(1), Nov. 10, 1988, 102 Stat. 3608; Pub. L. 115–97, title I, § 13517(b)(2), Dec. 22, 2017, 131 Stat. 2147.)

Regulations under this section

Treasury regulations (26 CFR) issued under § 811

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 6 other sections

Cited by 7 Code sections

Cited in 12 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

December 22, 2017Amended by Pub. L. 115–97Parts changed in 2017: (d)(1)
November 10, 1988Amended by Pub. L. 100–647Parts changed in 1988: (d)(1)
July 18, 1984Added by Pub. L. 98–369Parts changed in 1984: (b)(3)

Where it sits in the Code

Nearby sections

§ 811 Accounting provisions
§ 812 Definition of company’s share and policyholder’s share
§ 813 Repealed
§ 814 Contiguous country branches of domestic life insurance companies
§ 815 Repealed

Official notes

Show the Law Revision Counsel's notes (amendments, effective dates)

Editorial Notes

Prior Provisions

A prior section 811, added Pub. L. 86–69, § 2(a), June 25, 1959, 73 Stat. 126; amended Pub. L. 97–248, title II, § 255(b)(1), Sept. 3, 1982, 96 Stat. 533; Pub. L. 98–369, div. A, title VII, § 714(a), July 18, 1984, 98 Stat. 960, related to dividends to policyholders, prior to the general revision of this part by Pub. L. 98–369, § 211(a).

Another prior section 811, act Aug. 16, 1954, ch. 736, § 811, as added Mar. 13, 1956, ch. 83, § 2, 70 Stat. 44; amended July 24, 1956, ch. 696, § 2(c), 70 Stat. 633; Mar. 17, 1958, Pub. L. 85–345, § 2(c), 72 Stat. 37, imposed a tax on the life insurance company taxable income of all life insurance companies for taxable years beginning after Dec. 31, 1957, prior to the general revision of this part by Pub. L. 86–69, § 2(a).

Amendments

2017—Subsec. (d)(1). Pub. L. 115–97 substituted “the interest rate in effect under section 808(g)” for “the greater of the prevailing State assumed interest rate or applicable Federal interest rate in effect under section 807”.

1988—Subsec. (d)(1). Pub. L. 100–647 substituted “the greater of the prevailing State assumed interest rate or applicable Federal interest rate in effect under section 807 for the contract” for “the prevailing State assumed interest rate for the contract”.

1984—Subsec. (b)(3). Pub. L. 98–369, § 42(a)(8), substituted “section 1273” for “section 1232(b)”.

Effective Date of 2017 Amendment

Amendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, with transition rule and transition relief, see section 13517(c) of Pub. L. 115–97, set out as a note under section 807 of this title.

Effective Date of 1988 Amendment

Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provisions of the Revenue Act of 1987, Pub. L. 100–203, title X, to which such amendment relates, see section 2004(u) of Pub. L. 100–647, set out as a note under section 56 of this title.

Effective Date of 1984 Amendment

Amendment by section 42(a)(8) of Pub. L. 98–369 applicable to taxable years ending after July 18, 1984, see section 44 of Pub. L. 98–369, set out as an Effective Date note under section 1271 of this title.

Effective Date

Section applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as a note under section 801 of this title.