I.R.C Section 831(b) changes effective 1-1-2017

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On Dec. 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed into law. The PATH Act includes significant modifications to the provisions contained in I.R.C. §831(b). Existing §831(b), unchanged by the PATH Act until Jan. 1, 2017, allows eligible insurance companies to make an irrevocable election to be taxed only on the taxable investment income (as that term is defined in §834) of such company.

Click here to view the Protecting Americans from Tax Hikes Act of 2015 tax alert.