IRS grants insurance company an extension of time to file an alternative tax election

Insurance Tax Bulletin

Insurance companies other than life insurance companies are generally taxed on their taxable income according to Section 831(a). However, insurance companies that meet certain requirements may elect to pay an alternative tax provided in Section 831(b) based only on the company's taxable investment income. The election must be filed by the due date of the tax return for which the election would have been effective. In PLR 201323009, the IRS granted an insurance company an extension of time to file an election to be subject to the alternative tax under Section 831(b).



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