1120-L Instructions for Form 1120-L

2016

Instructions for Form 1120-L

Department of the Treasury
Internal Revenue Service

U.S. Life Insurance Company Income Tax Return
Contents

Section references are to the Internal
Revenue Code unless otherwise noted.

Contents

Future Developments . . . . . . .
What's New . . . . . . . . . . . . .
Photographs of Missing Children
The Taxpayer Advocate Service
How To Get Forms and
Publications . . . . . . . . . .
General Instructions . . . . . . . .
Purpose of Form . . . . . . .
Who Must File . . . . . . . .
Definitions . . . . . . . . . . .
Electronic Filing . . . . . . .
When To File . . . . . . . . .
Where To File . . . . . . . . .
Who Must Sign . . . . . . . .
Paid Preparer Authorization
Statements . . . . . . . . . .
Assembling the Return . . .
Tax Payments . . . . . . . .
Interest and Penalties . . . .
Accounting Methods . . . .
Accounting Period . . . . . .
Rounding Off to Whole
Dollars . . . . . . . . . . .
Recordkeeping . . . . . . . .
Other Forms and
Statements That May Be
Required . . . . . . . . . .
Specific Instructions . . . . . . . .
Period Covered . . . . . . .
Name and Address . . . . .
Item A. Identifying
Information . . . . . . . .
Item B. Employer
Identification Number
(EIN) . . . . . . . . . . . .
Item D. Section 953
Elections . . . . . . . . . .
Item E. Final Return, Name
Change, Address
Change, or Amended
Return . . . . . . . . . . .
Life Insurance Company
Taxable Income . . . . .
Schedule A—Dividend
Income and
Dividends-Received
Deduction . . . . . . . . .
Schedule B—Gross
Investment Income . . .
Schedule F—Increase
(Decrease) in Reserves
and Company/
Policyholder Share
Percentage . . . . . . . .
Schedule G—Policy
Acquisition Expenses . .

Dec 27, 2016

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Schedule H—Small Life
Insurance Company
Deduction . . . . . . . .
Schedule I—Limitation on
Noninsurance Losses
Schedule J . . . . . . . . .
Schedule K—Tax
Computation . . . . . .
Schedule L . . . . . . . . .
Schedule M—Other
Information . . . . . . .
Index . . . . . . . . . . . . . . . .

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Future Developments
For the latest information about
developments related to Form 1120-L
and its instructions, such as
legislation enacted after they were
published, go to www.irs.gov/1120l.

What's New
Changes in due date for filing corporate returns. For tax years
beginning after 2015, the due date for
filing corporate returns generally is the
15th day of the 4th month after the
end of the corporation's tax year.
Special rules apply to corporations
with tax years ending in June. See
When To File, later.
Increase in penalty for failure to
file. For returns required to be filed
after December 31, 2015, the
minimum penalty for failure to file a
return that is over 60 days late has
increased to the smaller of the tax due
or $205. See Late filing of return, later.

Photographs of Missing
Children

The IRS is a proud partner with the
National Center for Missing &
Exploited Children® (NCMEC).
Photographs of missing children
selected by the Center may appear in
instructions on pages that would
otherwise be blank. You can help
bring these children home by looking
at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if
you recognize a child.

. . . . 21

Cat. No. 11485H

The Taxpayer Advocate
Service

The Taxpayer Advocate Service
(TAS) is an independent
organization within the IRS that helps
taxpayers and protects taxpayer
rights. TAS's job is to ensure that
every taxpayer is treated fairly and
knows and understands their rights
under the Taxpayer Bill of Rights.
As a taxpayer, the corporation has
rights that the IRS must abide by in its
dealings with the corporation. The
TAS tax toolkit at
www.taxpayeradvocate.irs.gov can
help the corporation understand these
rights.
TAS can help the corporation if:
A problem is causing financial
difficulty for the business.
The business is facing an
immediate threat of adverse action.
The corporation has tried
repeatedly to contact the IRS but no
one has responded, or the IRS hasn't
responded by the date promised.
TAS has offices in every state, the
District of Columbia, and Puerto Rico.
Local advocates' numbers are in their
local directories and at www.irs.gov/
Advocate/Local-Taxpayer-Advocate.
The corporation can also call TAS at
1-877-777-4778.
TAS also works to resolve
large-scale or systemic problems that
affect many taxpayers. If the
corporation knows of one of these
broad issues, please report it to TAS
through the Systemic Advocacy
Management System at www.irs.gov/
sams.
For more information, go to
www.irs.gov/advocate.

How To Get Forms and
Publications
Internet. You can access the IRS
website 24 hours a day, 7 days a
week, at IRS.gov to:
Download forms, instructions, and
publications;
Order IRS products online;

Research your tax questions online;
Search publications online by topic
or keyword;
View Internal Revenue Bulletins
(IRBs) published in recent years; and
Sign up to receive local and
national tax news by email.
Tax forms and publications. The
corporation can download or print all
of the forms and publications it may
need on www.irs.gov/formspubs.
Otherwise, the corporation can go to
www.irs.gov/orderforms to place an
order and have forms mailed to it. The
corporation should receive its order
within 10 business days.

General Instructions
Purpose of Form

Use Form 1120-L, U.S. Life Insurance
Company Income Tax Return, to
report the income, gains, losses,
deductions, credits, and to figure the
income tax liability of life insurance
companies.

Who Must File

Every domestic life insurance
company and every foreign
corporation that would qualify as a life
insurance company if it were a U.S.
corporation must file Form 1120-L.
This includes organizations described
in section 501(m)(1) that provide
commercial-type life insurance.

Mutual Savings Banks
Conducting Life Insurance
Business

Foreign Life Insurance
Companies

A foreign life insurance company that
sells a U.S. real property interest must
file Form 1120-L and Schedule D
(Form 1120) to report the sale. Gain
or loss from the sale of a U.S. real
property interest is considered
effectively connected with the conduct
of a U.S. business, even though the
foreign life insurance company does
not carry on any insurance business in
the United States and is not otherwise
required to file a U.S. income tax
return. See sections 842 and 897, and
the instructions for Schedule K, line 8,
later.

Other Insurance Companies

Insurance companies, other than life
insurance companies, should file
Form 1120-PC, U.S. Property and
Casualty Insurance Company Income
Tax Return. A burial or funeral benefit
insurance company that directly
manufactures funeral supplies or
performs funeral services is taxable
under section 831 and should file
Form 1120-PC.

Definitions

An “insurance company” means any
corporation if more than half of its
business during the tax year is from
the issuance of insurance or annuity
contracts or the reinsuring of risks
underwritten by insurance companies.

816(c). When determining whether
the reserves test has been met:
1. Life insurance reserves and
total reserves must each be reduced
by an amount equal to the mean of the
aggregates, at the beginning and end
of the tax year, of the policy loans
outstanding with respect to contracts
for which life insurance reserves are
maintained;
2. Amounts set aside and held at
interest to satisfy obligations under
contracts that do not contain
permanent guarantees with respect to
life, accident, or health contingencies
must not be included in either life
insurance reserves (section 816(c)(1))
or other reserves required by law
(section 816(c)(3)); and
3. Deficiency reserves must not be
included in either life insurance
reserves or total reserves.

Electronic Filing

Corporations can generally
electronically file (e-file) Form 7004
(automatic extension of time to file)
and Forms 940, 941, and 944
(employment tax returns). If there is a
balance due, the corporation can
authorize an electronic funds
withdrawal while e-filing. Form 1099
and other information returns can also
be electronically filed. The option to
e-file does not, however, apply to
certain returns.

Mutual savings banks conducting life
insurance business and meeting the
requirements of section 594 are
subject to an alternative tax consisting
of:
A partial tax computed on Form
1120, U.S. Corporation Income Tax
Return, on the taxable income of the
bank excluding the life insurance
department, and
A partial tax on the taxable income
computed on Form 1120-L of the life
insurance department.

A “life insurance company” is an
insurance company in the business of
issuing life insurance and annuity
contracts either separately or
combined with health and accident
insurance, or noncancelable contracts
of health and accident insurance that
meet the reserves test in section
816(a). Guaranteed renewable life,
health, and accident insurance that
the corporation cannot cancel but
reserves the right to adjust premium
rates by classes, according to
experience under the kind of policy
involved, are treated as
noncancelable.

For more information, visit
www.irs.gov/filing. Click on the links
for “Small-Businesses &
Self-Employed” and “Corporations.”

Enter the combined tax on line 2 of
Schedule J, Form 1120. File Form
1120 and attach Form 1120-L as a
statement (and identify it as such) or
attach a statement showing the
computation of the taxable income of
the life insurance department
(including all relevant information that
would be reported on Form 1120-L).

The “reserves test” requires that life
insurance reserves, as defined in
section 816(b), plus unearned
premiums and unpaid losses (whether
or not ascertained) on noncancelable
life, health, or accident policies not
included in life insurance reserves
must make up more than 50% (0.50)
of total reserves as defined in section

However, a corporation with a fiscal
tax year ending June 30 must file by
the 15th day of the 3rd month after the
end of its tax year. A corporation with
a short tax year ending anytime in
June will be treated as if the short year
ended on June 30, and must file by
the 15th day of the 3rd month after the
end of its tax year.

-2-

When To File

Generally, a corporation must file its
income tax return by the 15th day of
the 4th month after the end of its tax
year. A new corporation filing a
short-period return must generally file
by the 15th day of the 4th month after
the short period ends. A corporation
that has dissolved must generally file
by the 15th day of the 4th month after
the date it dissolved.

Instructions for Form 1120-L (2016)

If the due date falls on a Saturday,
Sunday, or legal holiday, the
corporation can file on the next
business day.

Private Delivery Services

Corporations can use certain private
delivery services designated by the
IRS to meet the “timely mailing as
timely filing” rule for tax returns. These
private delivery services include only
the following.

DHL Express: DHL Express 9:00,
DHL Express 10:30, DHL Express
12:00, DHL Express Worldwide, DHL
Express Envelope, DHL Import
Express 10:30, DHL Import Express
12:00, and DHL Import Express
Worldwide.
Federal Express (FedEx): FedEx
First Overnight, FedEx Priority
Overnight, FedEx Standard
Overnight, FedEx 2Day, FedEx
International Next Flight Out, FedEx
International Priority, FedEx
International First, and FedEx
International Economy.
United Parcel Service (UPS): UPS
Next Day Air Early AM, UPS Next Day
Air, UPS Next Day Air Saver, UPS
2nd Day Air, UPS 2nd Day Air A.M.,
UPS Worldwide Express Plus, and
UPS Worldwide Express.
The private delivery service can tell
you how to get written proof of the
mailing date.
For the IRS mailing address to use
if you are using a private delivery
service, go to IRS.gov and enter
“private delivery services” in the
search box.
Private delivery services
cannot deliver items to P.O.
CAUTION boxes. You must use the U.S.
Postal Service to mail any item to an
IRS P.O. box address.

!

Extension of Time To File

File Form 7004, Application for
Automatic Extension of Time to File
Certain Business Income Tax,
Information, and Other Returns, to
request an extension of time to file.
Generally, file Form 7004 by the
regular due date of the return. See the
Instructions for Form 7004.

Who Must Sign

The return must be signed and dated
by:

Instructions for Form 1120-L (2016)

Where To File
File the corporation's return at the applicable IRS address listed below.
And the total assets at
the end of the tax year
If the corporation's principal (Form 1120-L,
business, office, or agency
Schedule L, Part I, line 6,
is located in:
column (b)) are:
Connecticut, Delaware, District
of Columbia, Florida, Georgia,
Illinois, Indiana, Kentucky,
Maine, Maryland,
Massachusetts, Michigan,
New Hampshire, New Jersey,
New York, North Carolina,
Ohio, Pennsylvania, Rhode
Island, South Carolina,
Tennessee, Vermont, Virginia,
West Virginia, Wisconsin
Alabama, Alaska, Arizona,
Arkansas, California,
Colorado, Hawaii, Idaho, Iowa,
Kansas, Louisiana, Minnesota,
Mississippi, Missouri,
Montana, Nebraska, Nevada,
New Mexico, North Dakota,
Oklahoma, Oregon, South
Dakota, Texas, Utah,
Washington, Wyoming
A foreign country or U.S.
possession

Use the following address:

Less than $10 million and
Schedule M-3 is not filed

Department of the Treasury
Internal Revenue Service Center
Cincinnati, OH 45999-0012

$10 million or more or less
than $10 million and
Schedule M-3 is filed

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0012

Any amount

Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0012

Any amount

Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409

A group of corporations with members located in more than one service center
area will often keep all the books and records at the principal office of the
managing corporation. In this case, the tax returns of the corporations may be
filed with the service center for the area in which the principal office of the
managing corporation is located.
The president, vice-president,
treasurer, assistant treasurer, chief
accounting officer; or
Any other corporate officer (such as
tax officer) authorized to sign.
If a return is filed on behalf of a
corporation by a receiver, trustee, or
assignee, the fiduciary must sign the
return, instead of the corporate officer.
Returns and forms signed by a
receiver or trustee in bankruptcy on
behalf of a corporation must be
accompanied by a copy of the order
or instructions of the court authorizing
signing of the return or form.
If an employee of the corporation
completes Form 1120-L, the paid
preparer space should remain blank.
Anyone who prepares Form 1120-L
but does not charge the corporation
should not complete that section.
Generally, anyone who is paid to
prepare the return must sign it and fill
in the “Paid Preparer Use Only” area.
-3-

The paid preparer must complete
the required preparer information and:
Sign the return in the space
provided for the preparer's signature.
Give a copy of the return to the
taxpayer.
Note. A paid preparer may sign
original or amended returns by rubber
stamp, mechanical device, or
computer software program.

Paid Preparer
Authorization

If the corporation wants to allow the
IRS to discuss its 2016 tax return with
the paid preparer who signed it, check
the “Yes” box in the signature area of
the return. This authorization applies
only to the individual whose signature
appears in the “Paid Preparer Use
Only” section of the return. It doesn’t
apply to the firm, if any, shown in that
section.

If the “Yes” box is checked, the
corporation is authorizing the IRS to
call the paid preparer to answer any
questions that may arise during the
processing of its return. The
corporation is also authorizing the
paid preparer to:
Give the IRS any information that is
missing from the return,
Call the IRS for information about
the processing of the return or the
status of any related refund or
payment(s), and
Respond to certain IRS notices
about math errors, offsets, and return
preparation.
The corporation is not authorizing
the paid preparer to receive any
refund check, bind the corporation to
anything (including any additional tax
liability), or otherwise represent the
corporation before the IRS.
The authorization will automatically
end no later than the due date
(excluding extensions) for filing the
corporation's 2017 tax return. If the
corporation wants to expand the paid
preparer's authorization or revoke the
authorization before it ends, see Pub.
947, Practice Before the IRS and
Power of Attorney.

Statements
Annual statement. In general, every
domestic or foreign life insurance
company must attach a copy of the
National Association of Insurance
Commissioners (NAIC) annual
statement filed with the state of
domicile and used as the basis for
computing taxable income. If a
different annual statement was used
as the basis for computing taxable
income, attach that annual statement
to Form 1120-L. However, see
Electronic filing, next.
Electronic filing. If a domestic or
foreign life insurance company files
the Form 1120-L electronically, do not
attach the annual statement or pro
forma annual statement to the
electronically filed return. However,
you must provide a copy of the annual
statement or pro forma annual
statement to the IRS if requested and
retain it with your other tax records for
the period required by the regulations.
Reconciliation. Corporations that
do not file Schedule M-3 (Form
1120-L) with Form 1120-L must attach
a statement that reconciles Form

1120-L with the annual statement
used as the basis for computing
taxable income reported on Form
1120-L. Also, see the Note under the
instructions for Schedule F for
additional required reconciliations.

falls on a Saturday, Sunday, or legal
holiday, the payment is due on the
next day that isn't a Saturday,
Sunday, or legal holiday.

Assembling the Return

Corporations must use electronic
funds transfer to make all federal tax
deposits (such as deposits of
employment, excise, and corporate
income tax). Generally, electronic
funds transfers are made using the
Electronic Federal Tax Payment
System (EFTPS).

To ensure that the corporation's tax
return is correctly processed, attach
all schedules and other forms after
page 8 of Form 1120-L in the
following order.
1. Schedule N (Form 1120),
Foreign Operations of U.S.
Corporations.
2. Schedule D (Form 1120),
Capital Gains and Losses.
3. Schedule O (Form 1120),
Consent Plan and Apportionment
Schedule for a Controlled Group.
4. Form 4626, Alternative
Minimum Tax—Corporations.
5. Form 8302, Electronic Deposit
of Tax Refund of $1 Million or More.
6. Form 4136, Credit for Federal
Tax Paid on Fuels.
7. Form 8941, Credit for Small
Employer Health Insurance
Premiums.
8. Form 851, Affiliations Schedule.
9. Additional schedules in
alphabetical order.
10. Additional forms in numerical
order.
11. Supporting statements and
attachments.
Complete every applicable entry
space on Form 1120-L. Do not enter
“See Attached” or “Available Upon
Request” instead of completing the
entry spaces. If more space is needed
on the forms or schedules, attach
separate sheets using the same size
and format as on the printed forms. If
there are supporting statements and
attachments, arrange them in the
same order as the schedules or forms
they support and attach them last.
Show the totals on the printed forms.
Enter the corporation's name and EIN
on each supporting statement or
attachment.

Tax Payments

Generally, the corporation must pay
any tax due in full no later than the
due date for filing its tax return (not
including extensions). See the
instructions for line 31. If the due date
-4-

Electronic Deposit
Requirement

If the corporation does not want to
use EFTPS, it can arrange for its tax
professional, financial institution,
payroll service, or other trusted third
party to make deposits on its behalf.
Also, it can arrange for its financial
institution to submit a same-day
payment (discussed later) on its
behalf. EFTPS is a free service
provided by the Department of the
Treasury. Services provided by a tax
professional, financial institution,
payroll service, or other third party
may have a fee.
To get more information about
EFTPS or to enroll in EFTPS, visit
www.eftps.gov, or call
1-800-555-4477 (TTY/TDD
1-800-733-4829).
Depositing on time. To make your
EFTPS deposits on time, the
corporation must submit the
transaction by 8 p.m. Eastern time the
day before the date the deposit is due.
If the corporation uses a third party to
make deposits on its behalf, they may
have different cutoff times.
Same-day wire payment option. If
the corporation fails to submit a
deposit transaction on EFTPS by 8
p.m. Eastern time the day before the
date a deposit is due, it can still make
the deposit on time by using the
Federal Tax Collection Service
(FTCS). Before using the same-day
wire payment option, the corporation
will need to make arrangements with
its financial institution ahead of time
regarding availability, deadlines, and
costs. Financial institutions may
charge a fee for payments made this
way. To learn more about making a
same-day wire payment, visit
www.irs.gov/payments and click on
“Same-day wire.”

Instructions for Form 1120-L (2016)

Estimated Tax Payments
Generally, the following rules apply to
the corporation's payments of
estimated tax.
The corporation must make
installment payments of estimated tax
if it expects its total tax for the year
(less applicable credits) to be $500 or
more.
The installments are due by the
15th day of the 4th, 6th, 9th, and 12th
months of the tax year. If any date
falls on a Saturday, Sunday, or legal
holiday, the installment is due on the
next regular business day.
The corporation must use electronic
funds transfer to make installment
payments of estimated tax.
Use Form 1120-W, Estimated Tax
for Corporations, as a worksheet to
compute estimated tax. See the
Instructions for Form 1120-W.
Penalties may apply if the
corporation does not make required
estimated tax payment deposits. See
Estimated tax penalty below.
If the corporation overpaid
estimated tax, it may be able to get a
quick refund by filing Form 4466,
Corporation Application for Quick
Refund of Overpayment of Estimated
Tax.
See the instructions for line 29c
and line 29e, later.
Estimated tax penalty. A
corporation that does not make
estimated tax payments when due
may be subject to an underpayment
penalty for the period of
underpayment. Generally, a
corporation is subject to the penalty if
its tax liability is $500 or more and it
did not timely pay at least the smaller
of:
Its tax liability for the current year,
or
Its prior year's tax.
See section 6655 for details and
exceptions, including special rules for
large corporations.
Use Form 2220, Underpayment of
Estimated Tax by Corporations, to
see if the corporation owes a penalty
and to figure the amount of the
penalty. If Form 2220 is completed,
enter the penalty on line 30. See the
instructions for line 30, later.

Interest and Penalties

!

If the corporation receives a
notice about penalties after it

files its return, send the IRS an
explanation and we will determine if
the corporation meets reasonable
cause criteria. Do not attach an
explanation when the corporation's
return is filed.

who acted willfully in not doing so.
The penalty is equal to the full amount
of the unpaid trust fund tax. See the
Instructions for Form 720, Pub. 15
(Circular E), Employer's Tax Guide,
for details, including the definition of
responsible persons.

Interest. Interest is charged on taxes
paid late even if an extension of time
to file is granted. Interest is also
charged on penalties imposed for
failure to file, negligence, fraud,
substantial valuation misstatements,
substantial understatements of tax,
and reportable transaction
understatements from the due date
(including extensions) to the date of
payment. The interest charge is
figured at a rate determined under
section 6621.

Other penalties. Other penalties can
be imposed for negligence,
substantial understatement of tax,
reportable transaction
understatements, and fraud. See
sections 6662, 6662A, and 6663.

Late filing of return. A corporation
that does not file its tax return by the
due date, including extensions, may
be penalized 5% of the unpaid tax for
each month or part of a month the
return is late, up to a maximum of 25%
of the unpaid tax. The minimum
penalty for a return that is over 60
days late is the smaller of the tax due
or $205 (adjusted for inflation). The
penalty will not be imposed if the
corporation can show that the failure
to file on time was due to reasonable
cause. See Caution, earlier.
Late payment of tax. A corporation
that does not pay the tax when due
generally may be penalized 1 2 of 1% of
the unpaid tax for each month or part
of a month the tax is not paid, up to a
maximum of 25% of the unpaid tax.
See Caution, earlier.
Trust fund recovery penalty. This
penalty may apply if certain excise,
income, social security, and Medicare
taxes that must be collected or
withheld are not collected or withheld,
or these taxes are not paid. These
taxes are generally reported on:
Form 720, Quarterly Federal Excise
Tax Return;
Form 941, Employer's
QUARTERLY Federal Tax Return;
Form 944, Employer's ANNUAL
Federal Tax Return; or
Form 945, Annual Return of
Withheld Federal Income Tax.
The trust fund recovery penalty
may be imposed on all persons who
are determined by the IRS to be
responsible for collecting, accounting
for, or paying over these taxes, and

CAUTION

Instructions for Form 1120-L (2016)

-5-

Accounting Methods

The return of a life insurance company
must be filed using the accrual
method of accounting or, to the extent
permitted under regulations, a
combination of the accrual method
with any other method, except the
cash receipts and disbursements
method. In all cases, the method used
must clearly show life insurance
company taxable income (LICTI).
Change in accounting method.
Generally, the corporation must get
IRS consent to change either an
overall method of accounting or the
accounting treatment of any material
item. To do so, the corporation
generally must file Form 3115,
Application for Change in Accounting
Method. See the Instructions for Form
3115 for more information and
exceptions, including filing exceptions
for qualified small taxpayers and filing
exceptions for certain first-year
tangible property changes for small
business taxpayers. Also see Pub.
538.

Accounting Period

An insurance company must figure its
taxable income on the basis of a tax
year. A tax year is the annual
accounting period an insurance
company uses to keep its records and
report its income and expenses.
As a general rule under section
843, the tax year for every insurance
company is the calendar year.
However, if an insurance company
joins in the filing of a consolidated
return, it may adopt the tax year of the
common parent corporation even if
that year is not a calendar year.

Rounding Off to Whole
Dollars

The corporation can round off cents to
whole dollars on its return and

schedules. If the corporation does
round to whole dollars, it must round
all amounts. To round, drop amounts
under 50 cents and increase amounts
from 50 to 99 cents to the next dollar.
For example, $1.39 becomes $1 and
$2.50 becomes $3.
If two or more amounts must be
added to figure the amount to enter on
a line, include cents when adding the
amounts and round off only the total.

Recordkeeping

Keep the corporation's records for as
long as they may be needed for the
administration of any provision of the
Internal Revenue Code. Usually,
records that support an item of
income, deduction, or credit on the
return must be kept for 3 years from
the date the return is due or filed,
whichever is later. Keep records that
verify the corporation's basis in
property for as long as they are
needed to figure the basis of the
original or replacement property.

The corporation should keep
copies of all filed returns. They help in
preparing future and amended returns
and in the calculation of earnings and
profits.

Other Forms and
Statements That May Be
Required
Reportable transaction disclosure
statement. Disclose information for
each reportable transaction in which
the corporation participated. Form
8886, Reportable Transaction
Disclosure Statement, must be filed
for each tax year that the federal
income tax liability of the corporation
is affected by its participation in the
transaction. The following are
reportable transactions.
1. Any listed transaction, which is
a transaction that is the same as or
substantially similar to one of the
types of transactions that the IRS has
determined to be a tax avoidance
transaction and identified by notice,
regulation, or other published
guidance as a listed transaction.
2. Any transaction offered under
conditions of confidentiality for which
the corporation (or a related party)
paid an advisor a fee of at least
$250,000.
3. Certain transactions for which
the corporation (or a related party)

has contractual protection against
disallowance of the tax benefits.
4. Certain transactions resulting in
a loss of at least $10 million in any
single year or $20 million in any
combination of years.
5. Any transaction identified by the
IRS by notice, regulation, or other
published guidance as a “transaction
of interest.”
For more information, see
Regulations section 1.6011-4. Also
see the Instructions for Form 8886.
Penalties. The corporation may
have to pay a penalty if it is required to
disclose a reportable transaction
under section 6011 and fails to
properly complete and file Form 8886.
Penalties also apply under section
6707A if the corporation fails to file
Form 8886 with its corporate return,
fails to provide a copy of Form 8886 to
the Office of Tax Shelter Analysis
(OTSA), or files a form that fails to
include all the information required (or
includes incorrect information). Other
penalties, such as an
accuracy-related penalty under
section 6662A, may also apply. See
the Instructions for Form 8886 for
details on these and other penalties.
Reportable transactions by material advisors. Material advisors to any
reportable transaction must disclose
certain information about the
reportable transaction by filing Form
8918, Material Advisor Disclosure
Statement, with the IRS. See the
Instructions for Form 8918.
Transfers to a corporation controlled by the transferor. Every
significant transferor (as defined in
Regulations section 1.351-3(d)) that
receives stock of a corporation in
exchange for property in a
nonrecognition event must include the
statement required by Regulations
section 1.351-3(a) on or with the
transferor's tax return for the tax year
of the exchange. The transferee
corporation must include the
statement required by Regulations
section 1.351-3(b) on or with its return
for the tax year of the exchange,
unless all the required information is
included in any statement(s) provided
by a significant transferor that is
attached to the same return for the
same section 351 exchange. If the
transferor or transferee corporation is
a controlled foreign corporation, each
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U.S. shareholder (within the meaning
of section 951(b)) must include the
required statement on or with its
return.
Distributions under section 355.
Every corporation that makes a
distribution of stock or securities of a
controlled corporation, as described
in section 355 (or so much of section
356 as it relates to section 355), must
include the statement required by
Regulations section 1.355-5(a) on or
with its return for the year of the
distribution. A significant distributee
(as defined in Regulations section
1.355-5(c)) that receives stock or
securities of a controlled corporation
must include the statement required
by Regulations section 1.355-5(b) on
or with its return for the year of receipt.
If the distributing or distributee
corporation is a controlled foreign
corporation, each U.S. shareholder
(within the meaning of section 951(b))
must include the statement on or with
its return.
Dual consolidated losses. If a
domestic corporation incurs a dual
consolidated loss (as defined in
Regulations section 1.1503-2(c)(5)),
the corporation (or consolidated
group) may need to attach an elective
relief agreement and/or an annual
certification as provided in
Regulations section 1.1503-2(g)(2).
Election to reduce basis under
section 362(e)(2)(C). If property is
transferred to a corporation subject to
section 362(e)(2), the transferor and
the acquiring corporation may elect,
under section 362(e)(2)(C), to reduce
the transferor's basis in the stock
received instead of reducing the
acquiring corporation's basis in the
property transferred. Once made, the
election is irrevocable. For more
information, see section 362(e)(2) and
Regulations section 1.362-4. If an
election is made, a statement must be
filed in accordance with Regulations
section 1.362-4(d)(3).
Annual information statement for
elections under section 108(i). If
the corporation made an election in
2009 or 2010 to defer income from
cancellation of debt (COD) in
connection with the reacquisition of an
applicable debt instrument, the
corporation must attach a statement
to its return beginning with the tax
year following the tax year for which
the corporation made the election,
Instructions for Form 1120-L (2016)

and ending the first tax year all
income deferred has been included in
income. The statement must be
labeled "Section 108(i) Information
Statement" and must clearly identify,
for each applicable debt instrument to
which an election under section 108(i)
applies, any deferred:
COD income that is included in
income in the current tax year.
COD income that has been
accelerated because of an event
described in section 108(i)(5)(D) and
must be included in income in the
current tax year. Include a description
and the date of the acceleration event.
COD income that has not been
included in income in the current or
prior tax years.
OID deduction allowed as a
deduction in the current tax year.
OID deduction that is allowed as a
deduction in the current tax year
because of an accelerated event
described in section 108(i)(5)(D).
OID deduction that has not been
deducted in the current or prior tax
years.
In addition, the corporation must
annually include a copy of the election
statement it filed to make the election
to defer the income. For more
information regarding the annual
information statement, see Rev. Proc.
2009-37, 2009-36 I.R.B. 309. For
additional information on deferring
COD income, see the instructions for
Line 7. Other income, later.
Other forms and statements. See
Pub. 542, Corporations, for a list of
other forms and statements a
corporation may need to file in
addition to the forms and statements
discussed throughout these
instructions.

Specific Instructions
Period Covered

address of the corporation's principal
office or place of business. Include
the suite, room, or other unit number
after the street address. If the post
office does not deliver mail to the
street address and the corporation
has a P.O. box, show the box number
instead.
Note. Do not use the address of the
registered agent for the state in which
the corporation is incorporated. For
example, if a business is incorporated
in Delaware or Nevada and the
corporation's principal place office is
located in Little Rock, Arkansas, the
corporation should enter the Little
Rock address.
If the corporation receives its mail
in care of a third party (such as an
accountant or an attorney), enter on
the street address line “C/O” followed
by the third party's name and street
address or P.O. box.
If the corporation has a foreign
address, include the city or town,
state or province, country, and foreign
postal code. Do not abbreviate the
country name. Follow the country's
practice for entering the name of the
state or province and postal code.

Item A. Identifying
Information
Consolidated Return

If an affiliated group of corporations
includes one or more domestic life
insurance companies taxed under
section 801, the common parent may
elect to treat those life insurance
companies as includible corporations.
The life insurance companies must
have been members of the group for
the 5 tax years immediately preceding
the tax year for which the election is
made. See section 1504(c)(2) and
Regulations section 1.1502-47(d)(12).

tentative LICTI of members that are
life insurance companies.
Corporations filing a consolidated
return must check box 1 of Item A and
attach Form 851, Affiliations
Schedule, and other supporting
statements to the return. Also, for the
first year a subsidiary corporation is
being included in a consolidated
return, attach Form 1122,
Authorization and Consent of
Subsidiary Corporation To Be
Included in a Consolidated Income
Tax Return, to the parent's
consolidated return. Attach a separate
Form 1122 for each new subsidiary
being included in the consolidated
return.
File supporting statements for each
corporation included in the
consolidated return. Do not use Form
1120-L as a substitute for the
supporting statement. On the
supporting statement, use columns to
show the following, both before and
after adjustments.
1. Items of gross income and
deductions.
2. A computation of taxable
income.
3. Balance sheets as of the
beginning and end of the tax year.
4. A reconciliation of income per
books with income per return.
5. A reconciliation of retained
earnings.
Enter on Form 1120-L the totals for
each item of income, gain, loss,
expense, or deduction, net of
eliminating entries for intercompany
transactions between corporations
within the consolidated group. Attach
consolidated balance sheets and a
reconciliation of consolidated retained
earnings.
For more information on
consolidated returns, see the
regulations under section 1502.

Section 843 requires all insurance
companies to file on a calendar year
basis, unless they join in the filing of a
consolidated return. If a consolidated
return is filed, indicate the period
covered on the parent corporation's
return.

Note. The eligibility requirements (the
tacking rule) for a life insurance
company to join in the filing of a
consolidated return with nonlife
companies are covered in
Regulations section 1.1502-47(d)(12)
(v).

If the corporation is the common
parent of a life-nonlife consolidated
group, check boxes 1 and 2 of Item A.

Name and Address

Note. If an election under section
1504(c)(2) is in effect for an affiliated
group for the tax year, all items of
members of the group that are not life
insurance companies must not be
taken into account in figuring the

Filing requirements. The common
parent of a life-nonlife consolidated
group must satisfy the following filing
requirements.
File the applicable consolidated
corporate income tax return: a Form

Enter the corporation's true name (as
set forth in the charter or other legal
document creating it), address, and
EIN on the appropriate lines. Enter the
Instructions for Form 1120-L (2016)

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Life-Nonlife Consolidated
Return

1120-L, U.S. Life Insurance Company
Income Tax Return, where the
common parent is a life insurance
company; a Form 1120-PC, U.S.
Property and Casualty Insurance
Company Income Tax Return, where
the common parent is an insurance
company, other than a life insurance
company; or a Form 1120, U.S.
Corporation Income Tax Return,
where the common parent is any
other type of corporation.
Indicate clearly on the face of the
return that the corporate tax return is a
life-nonlife return. This requirement is
satisfied by checking box 2 of Item A
on page 1.
Show any setoffs required by
paragraphs (g), (m), and (n) of
Regulations section 1.1502-47.
Report separately the nonlife
consolidated taxable income or loss,
determined under Regulations section
1.1502-47(h), on a Form 1120 or
1120-PC (whether filed by the
common parent or as an attachment
to the consolidated return), for all
nonlife members of the consolidated
group.
Report separately the consolidated
partial LICTI (as defined by
Regulations section 1.1502-47(d)(3)),
determined under Regulations section
1.1502-47, on a Form 1120-L
(whether filed by the common parent
or as an attachment to the
consolidated return), for all life
members of the consolidated group.
Note. If a nonlife insurance company
is a member of an affiliated group, file
Form 1120-PC as an attachment to
the consolidated return in addition to
the supporting statements discussed
earlier under Consolidated Return.
Across the top of page 1 of Form
1120-PC, write “Supporting Statement
to Consolidated Returns.”

Schedule M-3 (Form 1120-L)

A life insurance company with total
assets (non-consolidated or
consolidated for all companies
included within a tax consolidation
group) of $10 million or more on the
last day of the tax year must file
Schedule M-3 (Form 1120-L), Net
Income (Loss) Reconciliation for U.S.
Life Insurance Companies With Total
Assets of $10 Million or More. A
corporation filing Form 1120-L that is
not required to file Schedule M-3 may
voluntarily file Schedule M-3.

If you are filing Schedule M-3
(Form 1120-L), check box 3 of Item A,
“Schedule M-3 (Form 1120-L)
attached” at the top of page 1 of Form
1120-L. See the Instructions for
Schedule M-3 (Form 1120-L) for more
details.
Note. If you do not file Schedule M-3
(Form 1120-L) with Form 1120-L, see
Reconciliation under Statements,
earlier.

Item B. Employer
Identification Number
(EIN)

Enter the corporation's EIN. If the
corporation does not have an EIN, it
must apply for one. An EIN can be
applied for:
Online—Click on the Employer ID
Numbers link at www.irs.gov/
businesses. The EIN is issued
immediately once the application
information is validated.
By faxing or mailing Form SS-4,
Application for Employer Identification
Number.
Corporations located in the
United States or U.S.
CAUTION possessions can use the
online application. Foreign
corporations should call
1-267-941-1099 (not a toll-free
number) for more information on
obtaining an EIN. See the Instructions
for Form SS-4.

!

EIN applied for, but not received. If
the corporation has not received its
EIN by the time the return is due,
enter “Applied For” and the date the
corporation applied in the space for
the EIN. However, if the corporation is
filing its return electronically, an EIN is
required at the time the return is filed.
An exception applies to subsidiaries
of corporations whose returns are
filed with the parent's electronically
filed consolidated Form 1120. These
subsidiaries should enter “Applied
For” in the space for the EIN on their
returns. The subsidiaries' returns are
identified under the parent
corporation's EIN.
For more information, see the
Instructions for Form SS-4.

Item D. Section 953
Elections

Check the appropriate box if the
corporation is a foreign corporation
and elects under:
1. Section 953(c)(3)(C) to treat its
related person insurance income as
effectively connected with the conduct
of a trade or business in the United
States, or
2. Section 953(d) to be treated as
a domestic corporation.
Generally, a foreign corporation
making either election must file its
return by sending it to:
Internal Revenue Service Center
P.O. Box 409101
Ogden, UT 84409
See Notice 87-50, 1987-2 C.B. 357,
and Rev. Proc. 2003-47, 2003-28
I.R.B. 55, for the procedural rules,
election statement formats, and filing
addresses for making the respective
elections under section 953(c)(3)(C)
or section 953(d).
Note. Once either election is made, it
will apply to the tax year for which it
was made and all subsequent tax
years unless revoked with the consent
of the IRS. Also, any loss of a foreign
corporation electing to be treated as a
domestic insurance company under
section 953(d) will be treated as a
dual-consolidated loss and may not
be used to reduce the taxable income
of any other member of the affiliated
group for the tax year or any other tax
year.
Note. If a section 953(d) election is
made, include the additional tax
required to be paid on line 10,
Schedule K. On the dotted line to the
left of line 10, Schedule K, write
“Section 953(d)” and the amount.
Attach a statement showing the
computation. See section 953(d) for
more details.

Item E. Final Return, Name
Change, Address Change,
or Amended Return

Indicate a final return, name change,
address change, or amended return
by checking the appropriate box.
Note. If a change of address or
responsible party occurs after the
return is filed, use Form 8822-B,

-8-

Instructions for Form 1120-L (2016)

Change of Address or Responsible
Party — Business, to notify the IRS of
the new address.

Life Insurance Company
Taxable Income

1. Pencil in the amount from line 8,
Schedule F, on line 2, to tentatively
compute life insurance company
gross income (LICGI).
2. Enter this tentative LICGI on
Schedule F, line 12, and complete the
remainder of Schedule F.

Income

After completing steps 1 and 2
above, erase the numbers penciled in
for step 1 and then enter on line 2 the
net decrease in reserves shown on
line 35, Schedule F.

Income from qualifying shipping
activities. Gross income does not
include income from qualifying
shipping activities if the corporation
makes an election under section 1354
to be taxed on its notional shipping
income (as defined in section 1353) at
the highest corporate tax rate (35%).
If the election is made, the corporation
generally may not claim any loss,
deduction, or credit with respect to
qualifying shipping activities. A
corporation making this election also
may elect to defer gain on the
disposition of a qualifying vessel.
Use Form 8902, Alternative Tax on
Qualifying Shipping Activities, to
figure the tax. Include the alternative
tax on Schedule K, line 9.

Line 3. 10% of certain decreases in
reserves under section 807(f)(1)
(B)(ii). If the amount of any item
referred to in section 807(c)
decreases as a result of a change in
the basis used to determine that item,
10% of the decrease must be
included in LICGI for each of the 10
succeeding tax years. See section
807(f)(1).

Except as otherwise provided in the
Internal Revenue Code, gross income
includes all income from whatever
source derived.

Line 1. Enter gross premiums and
other consideration received on
insurance and annuity contracts less
return premiums and premiums and
other consideration paid for indemnity
reinsurance.
Gross premiums and other
consideration includes advance
premiums, deposits, fees,
assessments, consideration received
for assuming liabilities under contracts
not issued by the corporation, and any
amount treated as premiums received
under section 808(e). (See the
instructions for Schedule F, line 18a,
later.)
Return premiums include amounts
rebated or refunded due to policy
cancellations or incorrectly computed
premiums, but do not include amounts
returned to policyholders when such
amounts are not fixed in the contract
but instead depend on the
corporation's experience or the
management's discretion.
Line 2. Net decrease in reserves. If
there is a decrease in reserves,
complete line 2 by doing the following.

Instructions for Form 1120-L (2016)

Note. If a corporation no longer
qualifies as a life insurance company,
the balance of any adjustments under
section 807(f) must be taken into
account in the last tax year the
corporation is qualified to file Form
1120-L. See section 807(f)(2).
Line 4. Investment income. Enter
the amount from Schedule B, line 8,
less 50% of interest income of an
ESOP loan made prior to August 20,
1996. Also, see Public Law 104-188,
section 1602 for binding contracts and
refinancing rules.
Line 5. Net capital gain. Unless
specifically excluded by section 1221,
each asset held by a corporation
(whether or not connected with its
business) is a "capital asset."
Under section 1221, capital asset
does not include:
1. Assets that can be inventoried
or property held mainly for sale to
customers.
2. Depreciable or real property
used in the trade or business.
3. Certain copyrights; or literary,
musical, or artistic compositions.
4. Accounts or notes receivable
acquired in the ordinary course of
trade or business for services
rendered or from the sale of property
described in 1 above.
5. Certain publications of the U.S.
government.

-9-

Section 818(b) modifies the above
definition so only property used in
carrying on an insurance business will
be considered as “depreciable or real
property used in the corporation's
trade or business.” For life insurance
companies, gains or losses from the
sale or exchange of depreciable
assets of any business other than an
insurance business will be treated as
gains or losses from the sale or
exchange of capital assets.
See section 818(c) and the related
regulations for how to limit the gain
from the sale or exchange of any
section 818(c) property.
Note. Form 8949 must be attached to
Schedule D (Form 1120), as required.
Line 6. Income from a special loss
discount account. Enter the total
from Part II, line 6, of Form 8816,
Special Loss Discount Account and
Special Estimated Tax Payments for
Insurance Companies. See section
847(5) and the Instructions for Form
8816 for more information.
Line 7. Other income. Enter any
other taxable income, includible in
LICGI, not reported on lines 1 through
6. List the type and amount of income
on an attached statement. If the life
insurance company has only one item
of other income, describe it in
parentheses on line 7. The following
are examples of other income to
report on line 7.
All income from noninsurance
business (defined in section 806(b)
(3)), but list it separately from all other
income.
Gains and losses (including
ordinary gains and losses) from sales
or exchanges of assets used in a
trade or business and from involuntary
conversions reported on Form 4797,
Sales of Business Property. Section
818(b)(1) provides that, for section
1231(a), “property used in a trade or
business” includes only:
1. Property used in carrying on an
insurance business that is either real
or depreciable property held for more
than 1 year.
2. Timber, coal, and domestic iron
ore to which section 631 applies.
For paragraph 1 above, property
used in a trade or business does not
include property includible in
inventory, property held primarily for
sale to customers, or certain

copyrights, literary, musical, or artistic
compositions, letters, memoranda,
and similar property.
The amount included in income
from Form 6478, Biofuel Producer
Credit.
The amount included in income
from Form 8864, Biodiesel and
Renewable Diesel Fuels Credit.
Ordinary income from trade or
business activities of a partnership
(from Schedule K-1 (Form 1065),
Partner's Share of Income,
Deductions, Credits, etc., or from
Schedule K-1 (Form 1065-B),
Partner's Share of Income (Loss)
From an Electing Large Partnership).
Do not offset ordinary losses against
ordinary income. Instead, include the
losses on line 18. Show the
partnership's name, address, and EIN
on a separate statement attached to
this return. If the amount entered is
from more than one partnership,
identify the amount from each
partnership.
Part or all of the proceeds received
from certain corporate-owned life
insurance contracts issued after
August 17, 2006. Corporations that
own one or more employer-owned life
insurance contracts issued after
August 17, 2006, must file Form 8925,
Report of Employer-Owned Life
Insurance Contracts.
Income from cancellation of debt
(COD) for the repurchase of a debt
instrument for less than its adjusted
issue price.
Any COD income deferred from
2009 or 2010 that is includible in
income in 2016. See section 108(i),
Regulations section 1.108(i)-1, and
Rev. Proc. 2009-37.
The corporation's share of the
following income from Form 8621,
Information Return by a Shareholder
of a Passive Foreign Investment
Company or Qualified Electing Fund.
1. Ordinary earnings of a qualified
electing fund (QEF).
2. Gain or loss from marking
passive foreign investment company
(PFIC) stock to market.
3. Gain or loss from sale or other
disposition of section 1296 stock.
4. Excess distributions from a
section 1291 fund allocated to the
current year and pre-PFIC years, if
any.
See Form 8621 and the
Instructions for Form 8621 for details.

Deductions
Limitations on Deductions
Section 263A uniform capitalization rules. The uniform capitalization
rules of section 263A require
corporations to capitalize certain
costs.
For details on the uniform
capitalization rules, see Regulations
sections 1.263A-1 through 1.263A-3.
Transactions between related taxpayers. Generally, an accrual basis
taxpayer can only deduct business
expenses and interest owed to a
related party in the year the payment
is included in the income of the
related party. See sections 163(e)(3),
163(j), and 267 for limitations on
deductions for unpaid interest and
expenses.
Corporations use Form 8926,
Disqualified Corporate Interest
Expense Disallowed Under Section
163(j) and Related Information, to
figure the amount of any corporate
interest expense disallowed by
section 163(j).
Section 291 limitations.
Corporations may be required to
adjust certain deductions. See section
291 to determine the amount of the
adjustment.
Golden parachute payments. A
portion of the payments made by a
corporation to key personnel that
exceeds their usual compensation
may not be deductible. This occurs
when the corporation has an
agreement (golden parachute) with
these key employees to pay them
these excess amounts if control of the
corporation changes. See section
280G and Regulations section
1.280G-1.
Business start-up and organizational costs. A corporation can elect
to deduct a limited amount of start-up
and organizational costs it paid or
incurred. Any remaining costs
generally must be amortized over an
180-month period. See sections 195
and 248 and the related regulations.
Time for making the election.
The corporation generally elects to
deduct start-up or organizational costs
by claiming the deduction on its
income tax return filed by the due date
(including extensions) for the tax year
in which the active trade or business
-10-

begins. However, for start-up or
organizational costs paid or incurred
before September 9, 2008, the
corporation is required to attach a
statement to its return to elect to
deduct such costs.
For more details including special
rules for costs paid or incurred before
September 9, 2008, see the
Instructions for Form 4562. Also see
Pub. 535, Business Expenses.
If the corporation timely filed its
return for the year without making an
election, it can still make an election
by filing an amended return within 6
months of the due date of the return
(excluding extensions). Clearly
indicate the election on the amended
return and write “Filed pursuant to
section 301.9100-2” at the top of the
amended return. File the amended
return at the same address the
corporation filed its original return.
The election applies when figuring
taxable income for the current tax year
and all subsequent years.
The corporation can choose to
forgo the elections above by
affirmatively electing to capitalize its
start-up or organizational costs on its
income tax return filed by the due date
(including extensions) for the tax year
in which the active trade or business
begins.
Note. The election to either amortize
or capitalize start-up costs is
irrevocable and applies to all start-up
costs that are related to the trade or
business.
Report the deductible amount of
start-up and organizational costs and
any amortization on line 18. For
amortization that begins during the
2016 tax year, complete and attach
Form 4562, Depreciation and
Amortization.
Reducing certain expenses for
which credits are allowable. If the
corporation claims certain credits, it
may need to reduce the otherwise
allowable deductions for expenses
used to figure the credit. This applies
to credits such as the following.
Employment credits. See
Employment credits, later.
Credit for increasing research
activities (Form 6765).
Orphan drug credit (Form 8820).
Disabled access credit (Form
8826).
Instructions for Form 1120-L (2016)

Employer credit for social security
and Medicare taxes paid on certain
employee tips (Form 8846).
Credit for small employer pension
plan startup costs (Form 8881).
Credit for employer-provided
childcare facilities and services (Form
8882).
Credit for small employer health
insurance premiums (Form 8941).
If the corporation has any of these
credits, figure the current year credit
before figuring the deduction for
expenses on which the credit is
based. If the corporation capitalized
any costs on which it figured the
credit, it may need to reduce the
amount capitalized by the credit
attributable to these costs.
See the instructions for the form
used to figure the applicable credit for
more information.
Limitations on deductions related
to property leased to tax-exempt
entities. If a corporation leases
property to a governmental or other
tax-exempt entity, the corporation
cannot claim deductions related to the
property to the extent that they
exceed the corporation's income from
the lease payments. This disallowed
tax-exempt use loss can be carried
over to the next tax year and treated
as a deduction with respect to the
property for that tax year. See section
470(d) for more details and
exceptions.
Line 9. Death benefits, etc. Enter all
claims and benefits accrued and
losses incurred (whether or not
ascertained) during the year on
insurance and annuity contracts.
Losses incurred (whether or not
ascertained) include a reasonable
estimate of both losses incurred but
not reported and of reported losses,
when the amount of the losses cannot
be determined by the end of the tax
year. Losses incurred must be
adjusted to take into account
recoveries (e.g., for reinsurance) for
those losses together with estimates
of those recoveries that may be
recovered on those losses in future
years.
Under section 807(c), the

TIP amount of unpaid losses

(other than losses on life
insurance contracts) must be the
amount of the discounted unpaid
losses under section 846. See the
Instructions for Form 1120-L (2016)

instructions for Schedule F, line 2, for
more information on the discounting
provisions.
Line 11. 10% of increase in reserves under section 807(f)(1)(B)
(i). If the amount of any item referred
to in section 807(c) increases as a
result of a change in the basis used to
determine that item, 10% of the
increase will be allowed as a
deduction in computing LICTI for each
of the 10 succeeding tax years. See
section 807(f)(1).
Termination as life insurance
company. If a corporation ceases to
qualify as a life insurance company,
the balance of any adjustments under
section 807(f) must be taken into
account in the last year that the
corporation is qualified to file Form
1120-L. See section 807(f)(2).
Line 13. Assumption by another
person of liabilities under insurance, etc., contracts. Enter the total
consideration paid by the corporation
to another person (other than for
indemnity reinsurance) for the
assumption by that person of liabilities
under insurance and annuity contracts
(including supplementary contracts).
Line 14. Dividends reimbursable
by taxpayer. Enter the amount of
policyholder dividends:
1. Paid or accrued by another
insurance company for policies this
corporation has reinsured, and
2. That are reimbursable by the
corporation under the terms of the
reinsurance contract.
Line 15a. Interest. Enter all interest
paid or accrued during the tax year.
No deduction is allowed under section
163 for interest on the items
described in section 807(c). Also, do
not include interest included on
Schedule G, line 9 (general
deductions).
Limitations. The deduction for
interest is limited when the
corporation is a policyholder or
beneficiary with respect to a life
insurance, endowment, or annuity
contract issued after June 8, 1997.
For details, see section 264(f). Attach
a statement showing the computation
of the deduction.
Section 108(i) OID deduction. If
the corporation issued a debt
-11-

instrument with OID that is subject to
section 108(i)(2) because of an
election to defer the income from the
cancellation of debt (COD), the
interest deduction for this OID is
deferred until the COD is includible in
income. The accrued OID is allowed
as a deduction ratably over the 5-year
period that the COD is includible in
income. The deduction is limited to
the amount of COD subject to the
section 108(i) election. An annual
information statement (discussed
earlier) is required if the election is
made. See section 108(i) for more
details.
Line 15b. Less tax-exempt interest
expense. Enter interest paid or
accrued on indebtedness incurred or
continued to purchase or carry
obligations, the interest on which is
wholly tax-exempt. See section
265(b) for special rules and
exceptions for financial institutions.
Also see section 265(b)(7) for a de
minimis exception for financial
institutions for certain tax-exempt
bonds issued in 2009 and 2010.
Line 17. Additional deduction.
Enter the total from Form 8816, Part II,
line 5.
Any insurance company taking the
additional deduction must:
Make special estimated tax
payments equal to the tax benefit from
the deduction, and
Establish and maintain a Special
Loss Discount Account. See section
847 and Form 8816 for more
information.
Line 18. Other deductions. Attach a
statement, listing by type and amount,
all allowable deductions in computing
LICTI (including the amortization of
premiums under section 811(b)) not
included on lines 9 through 17.
Examples of other deductions
include the following. See Pub. 535
for details on other deductions that
may apply to corporations.
The domestic production activities
deduction. See Form 8903, Domestic
Production Activities Deduction.
Certain business start-up and
organizational costs (discussed
earlier under Limitations on
Deductions).
Legal and professional fees.
Supplies used and consumed in the
business.

Travel, meals, and entertainment
expenses. Special rules apply
(discussed later).
Utilities.
Ordinary losses from trade or
business activities of a partnership
(from Schedule K-1 (Form 1065 or
1065-B)). Do not offset ordinary
income against ordinary losses.
Instead, include the income on line 7.
Show the partnership's name,
address, and EIN on a separate
statement attached to this return. If
the amount is from more than one
partnership, identify the amount from
each partnership.
Any extraterritorial income
exclusion (from Form 8873,
Extraterritorial Income Exclusion).
Deduction for certain energy
efficient commercial building property
placed in service during the tax year.
Dividends paid in cash on stock
held by an employee stock ownership
plan. However, a deduction can only
be taken for the dividends above if,
according to the plan, the dividends
are:
1. Paid in cash directly to the plan
participants or beneficiaries;
2. Paid to the plan, which
distributes them in cash to the plan
participants or their beneficiaries no
later than 90 days after the end of the
plan year in which the dividends are
paid;
3. At the election of such
participants or their beneficiaries (a)
payable as provided under 1 or 2
above, or (b) paid to the plan and
reinvested in qualifying employer
securities; or
4. Used to make payments on a
loan described in section 404(a)(9).
See section 404(k) for more details
and the limitation on certain
dividends.
Deductions from any noninsurance
business (defined in section 806(b)
(3)). Deductions from any
noninsurance business should be
listed separately from all other
deductions.
Depreciation or amortization (attach
Form 4562, if required). Attach Form
T (Timber), Forest Activities
Schedule, if a deduction for depletion
of timber is taken. Foreign intangible
drilling costs and foreign exploration
and development costs must either be
added to the corporation's basis for
cost depletion purposes or be

deducted ratably over a 10-year
period. See sections 263(i), 616, and
617.
Do not deduct the following.
Fines or penalties paid to a
government for violating any law.
Lobbying expenses. However, see
exceptions (discussed later).
Also include on line 18 the following.
Compensation of officers. Enter
deductible officers' compensation.
See Employment credits, later, for a
list of employment credits that may
reduce your deduction for officers'
compensation. Do not include
compensation deductible elsewhere
on the return, such as elective
contributions to a section 401(k) cash
or deferred arrangement or amounts
contributed under a salary reduction
SEP agreement or a SIMPLE IRA
plan.
Include only the deductible part of
each officer's compensation on
line 18. (See Disallowance of
deduction for employee
compensation in excess of $1 million
below.) Attach a statement for
compensation of all officers using the
following columns.
1. Name of officer.
2. Social security number.
3. Percentage of time devoted to
business.
4. Amount of compensation.
If a consolidated return is filed,
each member of an affiliated group
must furnish this information.
Disallowance of deduction for employee compensation in excess of
$1 million. Publicly held corporations
cannot deduct compensation to a
covered employee to the extent that
the compensation exceeds $1 million.
Generally, a covered employee is:
The principal executive officer of
the corporation (or an individual acting
in that capacity) as of the end of the
tax year, or
An employee whose total
compensation must be reported to
shareholders under the Securities
Exchange Act of 1934 because the
employee is among the three highest
compensated officers for that tax year
(other than the principal executive
officer).
For this purpose, compensation
does not include the following.
-12-

Income from certain employee
trusts, annuity plans, or pensions.
Any benefit paid to an employee
that is excluded from the employee's
income.
The deduction limit does not apply
to:
Commissions based on individual
performance;
Qualified performance-based
compensation; and
Income payable under a written
binding contract in effect on February
17, 1993.
The $1 million limit is reduced by
amounts disallowed as excess
parachute payments under section
280G.
For details, see section 162(m) and
Regulations section 1.162-27. Also
see Notice 2007-49, 2007-25 I.R.B.
1429.
Limitations on tax benefits for executive compensation under the
Treasury Troubled Asset Relief
Program (TARP). The $1 million
compensation limit is reduced to
$500,000 for executive remuneration
and deferred deduction executive
remuneration paid to covered
executives by any entity that receives
or has received financial assistance
under TARP. The limit applies for
each period in which obligations
arising from financial assistance
under TARP remain outstanding. The
$500,000 is reduced by any amounts
disallowed as excess parachute
payments. See section 162(m)(5) for
definitions and other special rules.
Also see Notice 2008-94, 2008-44
I.R.B. 1070, for additional guidance.
In addition, a portion of any
parachute payments made to a
covered executive by an applicable
employer participating in a Treasury
troubled asset relief program is not
deductible as compensation if the
payments are made because of a
severance from employment during
an applicable tax year. For this
purpose, a parachute payment is any
payment to a senior executive officer
for departure from a company for any
reason, except for payments for
services performed or benefits
accrued. These limits do not apply to
a payment already treated as a
parachute payment. See section
280G(e) and Notice 2008-94.

Instructions for Form 1120-L (2016)

Salaries and wages. Include the
total salaries and wages paid for the
tax year. Do not include salaries and
wages deductible elsewhere on the
return, such as amounts included in
officers' compensation, elective
contributions to a section 401(k) cash
or deferred arrangement, or amounts
contributed under a salary reduction
SEP agreement or a SIMPLE IRA
plan.
If the corporation provided
taxable fringe benefits to its
CAUTION employees, such as personal
use of a car, do not deduct as wages
the amount allocated for depreciation
and other expenses claimed under
Other Deductions on line 18.

!

Limitation on tax benefits for remuneration under the Patient Protection and Affordable Care Act.
The $1 million compensation limit is
reduced to $500,000 for remuneration
for services provided by individuals for
or on behalf of certain health
insurance providers in taxable years
beginning after December 31, 2009.
The $500,000 limitation applies to
remuneration that is deductible in the
taxable year during which the services
were performed and remuneration for
services during the year that is
deductible in a future taxable year
(called “deferred deduction
remuneration”). The $500,000
limitation is reduced by any amounts
disallowed as excess parachute
payments. See section 162(m)(6) and
Regulations section 1.162-31 for
definitions and other special rules.
Also see Notice 2011-2, 2011-2 I.R.B.
260.
Employment credits. If the
corporation claims a credit on any of
the below forms, it may need to
reduce its deduction for salaries and
wages. See the applicable form(s).
Form 5884, Work Opportunity
Credit;
Form 8844, Empowerment Zone
Employment Credit;
Form 8845, Indian Employment
Credit; and
Form 8932, Credit for Employer
Differential Wage Payments.
Pension, profit-sharing, etc.,
plans. Enter the deduction for
contributions to qualified pension,
profit-sharing, or other funded
deferred compensation plans.
Employers who maintain such a plan
Instructions for Form 1120-L (2016)

generally must file one of the forms
listed below unless exempt from filing
under regulations or other applicable
guidance, even if the plan is not a
qualified plan under the Internal
Revenue Code. The filing requirement
applies even if the corporation does
not claim a deduction for the current
tax year. There are penalties for
failure to file these forms on time and
for overstating the pension plan
deduction. See sections 6652(e) and
6662(f). Also, see the instructions for
the applicable form.
Form 5500, Annual Return Report of
Employee Benefit Plan.
Form 5500-SF, Short Form Annual
Return/Report of Small Employee
Benefit Plan, instead of Form 5500,
generally if under 100 participants at
the beginning of the plan year.
Note. Form 5500 and Form 5500-SF
must be filed electronically under the
computerized ERISA Filing
Acceptance System (EFAST2). For
more information, see the EFAST2
website at www.efast.dol.gov.
Form 5500-EZ, Annual Return of
One-Participant (Owners and Their
Spouses) Retirement Plan. File this
form for a plan that only covers the
owner (or the owner and his or her
spouse) but only if the owner (or the
owner and his or her spouse) owns
the entire business.
Charitable contributions. Enter
contributions or gifts actually paid
within the tax year to or for the use of
charitable and governmental
organizations described in section
170(c) and any unused contributions
carried over from prior years. Special
rules and limits apply to contributions
to organizations conducting lobbying
activities. See section 170(f)(9).
Life insurance companies reporting
LICTI on the accrual method can elect
to treat as paid during the tax year any
contributions paid by the due date for
filing the corporations’s tax return (not
including extensions), if the
contributions were authorized by the
board of directors during the tax year.
Attach a declaration to the return
stating that the resolution authorizing
the contributions was adopted by the
board of directors during the tax year.
The declaration must include the date
the resolution was adopted. See
Regulations section 1.170A-11.
-13-

Limitation on deduction. The
total amount claimed cannot be more
than 10% of LICTI computed without
regard to the following.
Any deduction for contributions.
The deduction for policyholder
dividends.
The deduction for dividends
received.
The small life insurance company
deduction.
The domestic production activities
deduction under section 199.
Any operations loss carryback to
the tax year under section 810.
Any capital loss carryback to the tax
year under section 1212(a)(1).
Carryover. Charitable
contributions over the 10% limitation
cannot be deducted for the tax year
but may be carried over to the next 5
tax years.
A contributions carryover is not
allowed, however, to the extent that it
increases an operations loss.
Cash contributions. For
contributions of cash, check, or other
monetary gifts (regardless of the
amount), the corporation must
maintain a bank record, or a receipt,
letter, or other written communication
from the donee organization indicating
the name of the organization, the date
of the contribution, and the amount of
the contribution.
Contributions of $250 or more. A
corporation can deduct a contribution
of $250 or more only if it gets a written
acknowledgment from the donee
organization that shows the amount of
cash contributed, describes any
property contributed, and either gives
a description and a good faith
estimate of the value of any goods or
services provided in return for the
contribution or states that no goods or
services were provided in return for
the contribution. The acknowledgment
must be obtained by the due date
(including extensions) of the
corporation's return, or, if earlier, the
date the return is filed. Do not attach
the acknowledgment to the tax return,
but keep it with the corporation's
records.
Contributions of property other
than cash. If a corporation
contributes property other than cash
and claims over a $500 deduction for
the property, it must, generally, attach
a statement to the return describing

the kind of property contributed and
the method used to determine its fair
market value (FMV). Attach Form
8283, Noncash Charitable
Contributions, to the return for
contributions of property (other than
money) if the total claimed deduction
for all property contributed was more
than $5,000. Special rules apply to the
contribution of certain property. See
the Instructions for Form 8283.
Qualified conservation contributions. Special rules apply to qualified
conservation contributions, including
contributions of certain easements on
buildings located in a registered
historic district. See section 170(h)
and Pub. 526, Charitable
Contributions. For special rules
applicable to certain qualified
conservation contributions made by
Native corporations, see section
170(b)(2)(C).
Other special rules. The
corporation must reduce its deduction
for contributions of certain capital gain
property. See sections 170(e)(1) and
170(e)(5).
A larger deduction is allowed for
certain contributions. See section
170(e)(3) and (4).
For more information on charitable
contributions, including substantiation
and recordkeeping requirements, see
section 170 and the related
regulations and Pub. 526. For other
special rules that apply to
corporations, see Pub. 542.
Travel, meals, and
entertainment. Subject to limitations
and restrictions discussed below, a
corporation can deduct ordinary and
necessary travel, meals, and
entertainment expenses paid or
incurred in its trade or business. Also,
special rules apply to deductions for
gifts, skybox rentals, luxury water
travel, convention expenses, and
entertainment tickets. See section 274
and Pub. 463, Travel, Entertainment,
Gift, and Car Expenses.
Travel. The corporation cannot
deduct travel expenses of any
individual accompanying a corporate
officer or employee, including a
spouse or dependent of the officer or
employee, unless:
That individual is an employee of
the corporation, and
His or her travel is for a bona fide
business purpose and would

otherwise be deductible by that
individual.
Meals and entertainment.
Generally, the corporation can deduct
only 50% of the amount otherwise
allowable for meals and entertainment
expenses paid or incurred in its trade
or business. In addition (subject to
exceptions under section 274(k)(2)):
Meals must not be lavish or
extravagant;
A bona fide business discussion
must occur during, immediately
before, or immediately after the meal;
and
An employee of the corporation
must be present at the meal.
See section 274(n)(3) for a special
rule that applies to expenses for
meals consumed by individuals
subject to the hours of service limits of
the Department of Transportation.
Membership dues. The
corporation can deduct amounts paid
or incurred for membership dues in
civic or public service organizations,
professional organizations (such as
bar and medical associations),
business leagues, trade associations,
chambers of commerce, boards of
trade, and real estate boards.
However, no deduction is allowed if a
principal purpose of the organization
is to entertain, or provide
entertainment facilities for, members
or their guests. In addition,
corporations cannot deduct
membership dues in any club
organized for business, pleasure,
recreation, or other social purpose.
This includes country clubs, golf and
athletic clubs, airline and hotel clubs,
and clubs operated to provide meals
under conditions favorable to
business discussion.
Entertainment facilities. The
corporation cannot deduct an
expense paid or incurred for a facility
(such as a yacht or hunting lodge)
used for an activity usually considered
entertainment, amusement, or
recreation.
Amounts treated as
compensation. Generally, the
corporation may be able to deduct
otherwise nondeductible
entertainment, amusement, or
recreation expenses if the amounts
are treated as compensation to the
recipient and reported on Form W-2
for an employee or on Form
-14-

1099-MISC for an independent
contractor.
However, if the recipient is an
officer, director, beneficial owner
(directly or indirectly), or other
“specified individual” (as defined in
section 274(e)(2)(B) and Regulations
section 1.274-9(b)), special rules
apply. See section 274(e)(2) and
Regulations sections 1.274-9 and
1.274-10.
Lobbying expenses. Generally,
lobbying expenses are not deductible.
These expenses include:
Amounts paid or incurred in
connection with influencing federal or
state legislation (but not local
legislation), or
Amounts paid or incurred in
connection with any communication
with certain federal executive branch
officials in an attempt to influence the
official actions or positions of the
officials. See Regulations section
1.162-29 for the definition of
“influencing legislation.”
Dues and other similar amounts
paid to certain tax-exempt
organizations may not be deductible.
See section 162(e)(3). If certain
in-house lobbying expenditures do not
exceed $2,000, they are deductible.
Line 21b. Operations loss deduction. The operations loss deduction
(OLD) is the total of the operations
loss carryovers from prior tax years.
However, the OLD cannot exceed the
corporation's LICTI (after the
dividends-received deduction). See
section 810(c). If this deduction is
taken, show its computation on an
attached statement.
Generally, a life insurance
company can carry an operating loss
back to each of the 3 years preceding
the year of the loss and carry it over to
each of the 15 years following the
year of the loss.
There is also an irrevocable
election to waive the carryback period
and instead carry an operating loss
forward to years following the year of
the loss. To make this election, check
the box in line 12, Schedule M. To be
valid, the election must be made by
the due date (including extensions) for
filing Form 1120-L. If the life insurance
company is a new company for the
loss year, the loss may be carried
over to each of the 18 years following
the year of the loss.
Instructions for Form 1120-L (2016)

After applying the operating loss to
the first tax year to which it may be
carried, the portion of the loss the
corporation may carry to each of the
remaining tax years is the excess, if
any, of the loss over the sum of the
offsets for each of the prior tax years
to which the corporation may carry the
loss. See section 810(b)(2).
See section 810 for special rules,
limitations, and definitions pertaining
to operating loss carrybacks and
carryovers.
If an ownership change (described
in section 382(g)) occurs, the amount
of the taxable income of a loss
corporation that may be offset by the
pre-change operations loss
carryovers may be limited. (See
section 382 and the related
regulations.) A loss corporation must
include the information statement as
provided in Regulations section
1.382-11(a), with its income tax return
for each tax year that it is a loss
corporation in which an ownership
shift, equity structures shift, or other
transaction described in Temporary
Regulations section 1.382-2T(a)(2)(i)
occurs. If the corporation makes the
closing-of-the-books election, see
Regulations section 1.382-6(b).
The limitations under section 382
do not apply to certain ownership
changes after February 17, 2009,
made pursuant to a restructuring plan
under the Emergency Economic
Stabilization Act of 2008. See section
382(n).
For guidance in applying section
382 to loss corporations whose
instruments were acquired by
Treasury under certain programs
under the Emergency Economic
Stabilization Act of 2008, see Notice
2010-2, 2010-2 I.R.B. 251.
If a corporation elects the
alternative tax on qualifying shipping
activities under section 1354, no
deduction is allowed for an operations
loss attributable to the qualifying
shipping activities to the extent that
the loss is carried forward from a tax
year preceding the first tax year for
which the alternative tax election was
made. See section 1358(b)(2).
See section 844 for special loss
carryover rules for an insurance
company that has changed its form of
organization or has had a change in
the nature of its insurance business.
Instructions for Form 1120-L (2016)

Line 27. Total taxable income. The
total taxable income reported on
line 27 cannot be less than line 26 of
the Form 1120-L.
Also, line 27 cannot be less than
the largest of the following amounts.
The inversion gain of the
corporation for the tax year, if the
corporation is an expatriated entity or
a partner in an expatriated entity. For
details, see section 7874.
The sum of the corporation's
excess inclusions from Schedules Q
(Form 1066), line 2c, and the
corporation's taxable income
determined solely with respect to its
ownership and high-yield interests in
FASITs. For details, see sections
860E(a) and 860J (repealed).

Tax and Payments
Line 29b. Prior year(s) special estimated tax payments to be applied.
The amount entered on line 29b must
agree with the amount(s) from Form
8816, Part III, line 11. See Form 8816
and section 847(2) for additional
information.
Line 29c. Estimated tax payments.
Enter any estimated tax payments the
corporation made for the tax year. Do
not include any amount being applied
on line 29d.
Line 29d. Special estimated tax
payments. If the deduction under
section 847 is claimed on line 17,
page 1, special estimated tax
payments must be made in an amount
equal to the tax benefit of the
deduction. These payments must be
made on or before the due date
(without regard to extensions) of this
tax return. See Form 8816 and
section 847(2) for additional
information.
Tax benefit rule. Section 847(8)
requires that if a corporation carries
back net operating losses or capital
losses that arise in years after a year
in which a section 847 deduction was
claimed, then the corporation must
recompute the tax benefit attributable
to the previously claimed section 847
deduction taking into account the loss
carrybacks. Tax benefits also include
those derived from filing a
consolidated return with another
insurance company (without regard to
section 1503(c)).
Therefore, if the recomputation
changes the amount of the section
-15-

847 tax benefit, then the taxpayer
must provide a computation statement
and attach it to Form 8816.
Line 29e. Overpaid estimated tax.
If the corporation overpaid estimated
tax, it may be able to get a quick
refund by filing Form 4466. The
overpayment must be at least 10% of
the corporation's expected income tax
liability and at least $500. File Form
4466 after the end of the corporation's
tax year, and no later than the due
date for filing the corporation’s tax
return. Form 4466 must be filed
before the corporation files its tax
return. See the Instructions for Form
4466.
Line 29f. Enter the total of lines 29a
through 29c less line 29e. Do not
include line 29d in the total for line 29f.
Line 29h. Credits. Enter the
applicable credit on line 29h.
Credit for tax paid on undistributed capital gains. Enter any credit
from Form 2439, Notice to
Shareholder of Undistributed
Long-Term Capital Gains, for the
corporation's share of the tax paid by
a regulated investment company
(RIC) or a real estate investment trust
(REIT) on undistributed long-term
capital gains included in the
corporation's income. Attach Form
2439 to Form 1120-L.
Credit for federal tax on fuels.
Enter the total income tax credit
claimed on Form 4136, Credit for
Federal Tax Paid on Fuels. Attach
Form 4136 to Form 1120-L.
Credit for tax on ozone-depleting
chemicals. Include on line 29h any
credit the corporation is claiming
under section 4682(g)(2) for tax on
ozone-depleting chemicals. Enter
“ODC” next to the entry space.
Line 29i. U.S. income tax paid or
withheld at source. Enter the
amount of any U.S. income tax paid or
withheld as reported on Form 1042-S,
Foreign Person's U.S. Source Income
Subject to Withholding.
Line 29j. Refundable credits from
Form 8827, Credit for Prior Year
Minimum Tax—Corporations. If the
corporation elected to claim certain
unused minimum tax credits instead
of claiming any additional first-year
special depreciation allowance for
eligible property, see the Instructions
for Form 8827. Enter on line 29j the

amount from line 8c of Form 8827, if
applicable. See the Instructions for
Form 8827, for more information.
Line 29k. Total payments. Add the
amounts on lines 29f through 29j and
enter the total on line 29k.

If the installment agreement is
accepted, the corporation will be
charged a fee and it will be subject to
penalties and interest on the amount
of tax not paid by the due date of the
return.

Backup withholding. If the
corporation had federal income tax
withheld from any payments it
received because, for example, it
failed to give the payer its correct EIN,
include the amount withheld in the
total for line 29k. Write the amount
withheld and the words “Backup
Withholding” in the blank space above
line 29k.

Line 33. Electronic deposit of tax
refund of $1 million or more. If the
corporation is due a refund of $1
million or more and wants it
electronically deposited into its
checking or savings account at any
U.S. bank or other financial institution
instead of having a check sent to the
corporation, complete Form 8302 and
attach it to the corporation's tax return.

Line 30. Estimated tax penalty.
Generally, the corporation does not
have to file Form 2220 because the
IRS can figure the penalty amount, if
any, and bill the corporation.
However, even if the corporation does
not owe the penalty, it must complete
and attach Form 2220 if:
The annualized income or adjusted
method is used, or
The corporation is a large
corporation (as defined in the
Instructions for Form 2220) computing
its first required installment based on
the prior year's tax.
If Form 2220 is attached, check the
box on line 30 and enter the amount
of any penalty on that line. See
Estimated tax penalty, earlier.

Schedule A—Dividend
Income and
Dividends-Received
Deduction

Line 31. Amount owed. If the
corporation cannot pay the full amount
of tax owed, it can apply for an
installment agreement online. The
corporation can apply for an
installment agreement online if:
It cannot pay the full amount shown
on line 31,
The total amount owed is $25,000
or less, and
The corporation can pay the liability
in full in 24 months.
To apply using the Online Payment
Agreement Application, go to IRS.gov,
click on “Tools,” then click on “Online
Payment Agreement.”
Under an installment agreement,
the corporation can pay what it owes
in monthly installments. There are
certain conditions that must be met to
enter into and maintain an installment
agreement, such as paying the liability
within 24 months and making all
required deposits and timely filing tax
returns during the length of the
agreement.

For purposes of the 20% ownership
test on lines 1 through 7, the
percentage of stock owned by the
corporation is based on voting power
and value of the stock. Preferred
stock described in section 1504(a)(4)
is not taken into account.
Consolidated returns. Corporations
filing a consolidated return should see
Regulations sections 1.1502-13,
1.1502-26, and 1.1502-27 before
completing Schedule A.
Corporations filing a consolidated
return must not report as dividends on
Schedule A any amounts received
from corporations within the tax
consolidation group. Such dividends
are eliminated in consolidation rather
than offset by the dividends-received
deduction.
Line 1, column (a). Enter dividends
(except those received on
debt-financed stock acquired after
July 18, 1984 (see section 246A)) that
are:
Received from
less-than-20%-owned domestic
corporations subject to income tax,
and
Qualified for the 70% deduction
under section 243(a)(1).
Also include on line 1 the following.
Taxable distributions from an
IC-DISC or former DISC that are
designated as eligible for the 70%
deduction and certain dividends of
Federal Home Loan Banks. See
section 246(a)(2).
-16-

Dividends (except those received
on debt-financed stock acquired after
July 18, 1984) from a regulated
investment company (RIC). The
amount of dividends eligible for the
dividends-received deduction under
section 243 is limited by section
854(b). The corporation should
receive a notice from the RIC
specifying the amount of dividends
that qualify for the deduction.
Report so-called dividends or
earnings received from mutual
savings banks, etc., as interest. Do
not treat them as dividends.
Line 2, column (a). Enter on line 2:
Dividends (except those received
on debt-financed stock acquired after
July 18, 1984) that are received from
20%-or-more-owned domestic
corporations subject to income tax
and that are subject to the 80%
deduction under section 243(c), and
Taxable distributions from an
IC-DISC or former DISC that are
considered eligible for the 80%
deduction.
Line 3, column (a). Enter the
following.
Dividends received on
debt-financed stock acquired after
July 18, 1984, from domestic and
foreign corporations subject to income
tax that would otherwise be subject to
the dividends-received deduction
under section 243(a)(1), 243(c), or
245(a). Generally, debt-financed
stock is stock that the corporation
acquired by incurring a debt (for
example, it borrowed money to buy
the stock).
Dividends received from a RIC on
debt-financed stock. The amount of
dividends eligible for the
dividends-received deduction is
limited by section 854(b). The
corporation should receive a notice
from the RIC specifying the amount of
dividends that qualify for the
deduction.
Line 3, columns (b) and (c).
Dividends received on debt-financed
stock acquired after July 18, 1984, are
not entitled to the full 70% or 80%
dividends-received deduction. The
70% or 80% deduction is reduced by
a percentage that is related to the
amount of debt incurred to acquire the
stock. See section 246A. Also, see
section 245(a) before making this
computation for an additional
limitation that applies to dividends
Instructions for Form 1120-L (2016)

received from foreign corporations.
Attach a statement showing how the
amount on line 3, column (c), was
figured.
Line 4, column (a). Enter dividends
received on preferred stock of a
less-than-20%-owned public utility
that is subject to income tax and is
allowed the deduction provided in
section 247 (as affected by P.L.
113-295, Div. A, section 221(a)(41)
(A), Dec. 19, 2014, 128 Stat. 4043) for
dividends paid.
Line 5, column (a). Enter dividends
received on preferred stock of a
20%-or-more-owned public utility that
is subject to income tax and is allowed
the deduction provided in section 247
(as affected by P.L. 113-295, Div. A,
section 221(a)(41)(A), Dec. 19, 2014,
128 Stat. 4043) for dividends paid.
Line 6, column (a). Enter the
U.S.-source portion of dividends that:
Are received from
less-than-20%-owned foreign
corporations, and
Qualify for the 70% deduction
under section 245(a). To qualify for
the 70% deduction, the corporation
must own at least 10% of the stock of
the foreign corporation by vote and
value.
Also include dividends received
from a less-than-20%-owned FSC
that:
Are attributable to income treated
as effectively connected with the
conduct of a trade or business within
the United States (excluding foreign
trade income), and
Qualify for the 70% deduction
under section 245(c)(1)(B).
Line 7, column (a). Enter the
U.S.-source portion of dividends that:
Are received from
20%-or-more-owned foreign
corporations, and
Qualify for the 80% deduction
under section 245(a).
Also include dividends received
from a 20%-or-more-owned FSC that:
Are attributable to income treated
as effectively connected with the
conduct of a trade or business within
the United States (excluding foreign
trade income), and
Qualify for the 80% deduction
under section 245(c)(1)(B).
Line 8, column (a). Enter dividends
received from wholly owned foreign
subsidiaries that are eligible for the
Instructions for Form 1120-L (2016)

100% deduction under section 245(b)
but that do not qualify as “100%
dividends” under section 805(a)(4)
(C).
In general, the deduction under
section 245(b) applies to dividends
paid out of the earnings and profits of
a foreign corporation for a tax year
during which:
All of its outstanding stock is
directly or indirectly owned by the
domestic corporation receiving the
dividends, and
All of its gross income from all
sources is effectively connected with
the conduct of a trade or business
within the United States.
Do not include dividends received
from a life insurance company.
Also, include on line 8, column (a),
dividends from FSCs that are
attributable to foreign trade income
and that are eligible for the 100%
deduction provided in section 245(c)
(1)(A).
Line 9, column (a). Enter only those
dividends that qualify under section
243(b) for the 100%
dividends-received deduction
described in section 243(a)(3) but that
do not qualify as “100% dividends”
under section 805(a)(4)(C).
Corporations taking this deduction are
subject to the provisions of section
1561. Do not include dividends
received from a life insurance
company.
The 100% deduction does not
apply to affiliated group members that
are joining in the filing of a
consolidated return.
Line 10, column (c). Limitation on
dividends-received deduction.
Generally, line 10 of column (c)
cannot exceed the amount from the
Worksheet for Schedule A, line 10.
However, in a year in which a loss
from operations occurs, this limitation
does not apply even if the loss is
created by the dividends-received
deduction. See sections 246(b) and
810.
Line 13, column (a). In general,
enter “100% dividends” as defined in
section 805(a)(4)(C). That is, in
general, enter dividends that qualify
for the 100% dividends-received
deduction under sections 243, 244
(as affected by P.L. 113-295, Div. A,
section 221(a)(41)(A), Dec. 19, 2014,
128 Stat. 4043) and 245(b), and were
-17-

not reported on line 8 or 9 because
they were (a) not distributed out of
tax-exempt interest or out of dividends
that do not qualify as 100% dividends,
or (b) paid by a life insurance
company.
Note. Certain dividends received by
a foreign corporation are not subject
to proration. Attach a statement
showing computations.
Line 14, column (a). Include the
following.
1. Enter foreign dividends not
reportable on lines 3, 6, 7, or 8, of
column (a). Include on line 14 the
corporation's share of distributions
from a section 1291 fund from Form
8621, to the extent that the amounts
are taxed as dividends under section
301. See the Instructions for Form
8621.
2. Enter amounts included in
income under subpart F. This should
equal the total reported on line 6 of
Schedule I of Form 5471, Information
Return of U.S. Persons With Respect
to Certain Foreign Corporations.
These amounts are treated as
dividends only to the extent provided
in the Internal Revenue Code and
Treasury Regulations.
3. Gross-up of dividends for taxes
deemed paid under sections 902 and
960.
4. Dividends (other than capital
gain distributions reported on
Schedule D (Form 1120) and
exempt-interest dividends) that are
received from RICs and that are not
subject to the 70% deduction.
5. Dividends from tax-exempt
organizations.
6. Dividends (other than capital
gain distributions) received from a
REIT that, for the tax year of the trust
in which the dividends are paid,
qualifies under sections 856 through
860.
7. Dividends not eligible for a
dividends-received deduction, which
include the following.
a. Dividends received on any
share of stock held for less than 46
days during the 91-day period
beginning 45 days before the
ex-dividend date. When counting the
number of days the corporation held
the stock, you cannot count certain
days during which the corporation's
risk of loss was diminished. See

Worksheet for Schedule A, line 10

Keep for Your Records

1. Refigure line 8, page 1, without any domestic production
activities deduction, any adjustment under section 1059, and
without any capital loss carryback to the tax year under section
1212(a)(1). Add this refigured line 8 amount to the amount on
line 25, page 1. Subtract from that total the sum of lines 9
through 18, page 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Complete line 13, column (c) and enter the total of that amount,
line 9, column (c), and the portion of the deduction on line 8,
column (c), that is attributable to dividends from FSCs that are
attributable to foreign trade income . . . . . . . . . . . . . . . . . . . . . .
3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Multiply line 3 by 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Add lines 2, 5, and 7, column (c); the portion of the deduction on
line 8, column (c) that is attributable to wholly owned foreign
subsidiaries; and the portion of the deduction on line 3, column
(c) that is attributable to dividends received from
20%-or-more-owned corporations . . . . . . . . . . . . . . . . . . . . . . .
6. Enter the smaller of line 4 or line 5. If line 5 is greater than line 4,
stop here and enter the amount from line 6 on line 10, column
(c), and do not complete the rest of the worksheet . . . . . . . . . .
7. Enter the total amount of dividends from 20%-or-more-owned
corporations that are included on lines 2, 3, 5, and 7, column (a),
and the portion of the deduction on line 8, column (a), that is
attributable to wholly owned subsidiaries . . . . . . . . . . . . . . . . . .
8. Subtract line 7 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Multiply line 8 by 70% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Subtract line 5 above from line 10 of column (c) . . . . . . . . . . . .
11. Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . .
12. Dividends-received deduction after limitation (section
246(b)). Add lines 6 and 11. Enter the result here and on
line 10, column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

section 246(c)(4) and Regulations
section 1.246-5 for more details.
b. Dividends attributable to
periods totaling more than 366 days
that the corporation received on any
share of preferred stock held for less
than 91 days during the 181-day
period that began 90 days before the
ex-dividend date. When counting the
number of days the corporation held
the stock, you cannot count certain
days during which the corporation's
risk of loss was diminished. See
section 246(c)(4) and Regulations
section 1.246-5 for more details.
Preferred dividends attributable to
periods totaling less than 367 days
are subject to the 46-day holding
period rule above.
c. Dividends on any share of stock
to the extent the corporation is under
an obligation (including a short sale)
to make related payments with
respect to positions in substantially
similar or related property.

8. Any other taxable dividend
income not properly reported above.

Schedule B—Gross
Investment Income
Line 1. Interest. Enter the total
taxable interest received or accrued
during the tax year, less any
amortization of premium, plus any
accrual of discount required by
section 811(b). Generally, the
appropriate amortization of premium
and accrual of discount for the tax
year on bonds, notes, debentures, or
other evidence of indebtedness held
by a life insurance company should be
determined:
1. Under the method regularly
employed by the company, if
reasonable, and
2. In all other cases, under the
regulations.

-18-

For bonds (as defined in section
171(d)) issued after September 27,
1985, the appropriate amount of
amortization of premium must be
determined using the yield to maturity
method described in section 171(b)
(3). Market discount is not required to
be accrued under section 811(b).
Attach a statement showing the
method and computation used.
Note. The Small Business Job
Protection Act of 1996 repealed
section 133, which provided for the
50% interest income exclusion with
respect to ESOP loans. The Act also
repealed section 812(g), which
provided for the exclusion of interest
income from ESOP loans for
company/policyholder proration. The
repeal of these exclusions is effective
for ESOP loans made after August 20,
1996. See Act section 1602 for
special rules for binding contract
agreements in effect prior to June 10,
1996, and certain refinancings made
after August 20, 1996.
Line 3. Gross rents. Enter the gross
rents received or accrued during the
tax year. Related expenses, such as
repairs, taxes, and depreciation,
should be reported as “Other
deductions” on line 18, page 1.
Line 4. Gross royalties. Enter the
gross royalties received or accrued
during the tax year. Report the
depletion deduction on line 18,
page 1.
Line 5. Leases, terminations, etc.
Enter the gross income received from
entering into, altering, or terminating
any lease, mortgage, or other
instrument from which the corporation
derives interest, rents, or royalties.
Line 6. Excess of net short-term
capital gain over net long-term
capital loss. See the instructions for
line 5, page 1, earlier, for a definition
of capital assets.
Line 7. Gross income from a trade
or business other than insurance.
Enter the gross income from a trade
or business (other than an insurance
business) carried on by the life
insurance company or by a
partnership of which the life insurance
company is a partner. Include section
1245, section 1250, and other
ordinary gains on assets used in a
noninsurance business from Form
4797. Report expenses related to any
Instructions for Form 1120-L (2016)

trade or business other than
insurance on line 18, page 1.
Line 10. The increase in policy
cash value of section 264(f) policies as defined in section 805(a)
(4)(F). Generally, this applies to
contracts issued after June 8, 1997, in
tax years ending after that date.
However, it also applies to contracts
issued prior to June 9, 1997, that have
been subject to a material increase in
death benefits or other material
change. See Public Law 105-34,
section 1084(d).
See section 807 for a safe harbor
related to certain life insurance
contracts described in section 264(f)
(4).
Line 12. 100% qualifying dividends. Enter the total amount of
dividends if the percentage used to
determine the deduction allowable
under sections 243, 244 (as affected
by P.L. 113-295, Div. A, section
221(a)(41)(A), Dec. 19, 2014, 128
Stat. 4043), and 245(b) is 100%. Do
not include dividends to the extent
they are funded with tax-exempt
interest or dividends that would not
qualify as 100% dividends in the
hands of the corporation. See section
812(e).
Note. Multi-tiered corporate
arrangements cannot be used to
change the character of the
tax-exempt interest income and
dividends received in an attempt to
avoid exclusion.

Schedule F—Increase
(Decrease) in Reserves
and Company/
Policyholder Share
Percentage
Note. Attach a statement to the tax
return that reconciles lines 1 through 6
of Schedule F to the annual statement
used to prepare the tax return. If the
annual statement used to prepare the
tax return is different from the NAIC
annual statement filed with the state of
domicile, include a separate
reconciliation of lines 1 through 6 of
Schedule F to the annual statement
filed with the state of domicile.
Schedule F is used to figure:
1. The company's share
percentage used in determining the
company's share of the dividendsInstructions for Form 1120-L (2016)

received deduction under section
805(a)(4);
2. The policyholders' share
percentage used in determining the
policyholders' share of tax-exempt
interest for determining the increase
or decrease in reserves under section
807 (and the increase in policy cash
value of section 264(f) policies as
defined in section 805(a)(4)(F)); and
3. To determine if, under section
807, certain reserves decreased or
increased for the tax year. A net
decrease will be includible in gross
income, while a net increase will be a
deduction in computing LICTI.
The net increase or net decrease in
reserves is figured by comparing the
opening balance for reserves to the
closing balance for reserves reduced
by the policyholders' share of
tax-exempt interest (and the increase
in policy cash value of section 264(f)
policies as defined in section 805(a)
(4)(F)).
Reserve adjustments are not
treated as interest expenses for
allocation purposes under section
864(c). See section 818(f).
There are special rules for
computing reserves of unearned
premiums of certain nonlife contracts.
See section 807(e)(7)(A).
Note. If the basis for determining the
amount of any item referred to in
section 807(c) (life insurance
reserves, etc.) at the end of the tax
year differs from the basis for the
determination at the beginning of the
tax year, see section 807(f).
Line 1. Life insurance reserves.
For rules on how to compute life
insurance reserves, see sections
807(d) and (e). Section 807(d)(2)(B)
provides that the interest rate used to
compute life insurance reserves is the
greater of the applicable federal
interest rate (AFIR) or the prevailing
state assumed interest rate (SAIR).
The applicable rates for tax years
beginning in 2016 will be published in
the Internal Revenue Bulletin when
available. The applicable rates for tax
years beginning in 2015 are published
in Rev. Rul. 2016-2, 2016-4 I.R.B.
284. For modified guaranteed
contracts described in section 817A,
see Regulations section 1.817A-1.
Note. A change in a life insurance
company's computation of existing life
-19-

insurance reserves for annuity
contracts to take into account specific
factors issued by the NAIC is a
change in basis subject to section
807(f). See Rev. Rul. 2002-6, 2002-6
I.R.B. 460.
Line 2. Unearned premiums and
unpaid losses. For purposes of
sections 807 and 805(a)(1), the
amount of the unpaid losses (other
than losses on life insurance
contracts) must be the amount of the
discounted unpaid losses determined
under section 846.
Section 846 provides that the
amount of the discounted unpaid
losses must be figured separately by
each line of business (multiple peril
lines must be treated as a single line
of business) and by each accident
year and must be equal to the present
value of those losses determined by
using the:
1. Amount of the undiscounted
unpaid losses,
2. Applicable interest rate, and
3. Applicable loss payment
pattern.
Special rules apply to:
Unpaid losses related to disability
insurance (other than credit disability
insurance),
Noncancelable accident and health
insurance,
Cancelable accident and health
insurance, and
The international and reinsurance
lines of business.
With regard to the special rules for
discounting unpaid losses on accident
and health insurance (other than
disability income insurance), unpaid
losses are assumed to be paid in the
middle of the year following the
accident year.
Generally, the amount of
undiscounted unpaid losses means
the unpaid losses shown in the annual
statement. The amount of discounted
unpaid losses with respect to any line
of business for an accident year
cannot exceed the total amount of
unpaid losses with respect to any line
of business for an accident year as
reported on the annual statement.
The applicable interest rate for
each calendar year and the applicable
loss payment patterns for each
accident year for each line of business
are determined by the IRS. The

applicable interest rate and loss
payment patterns for 2016 are
published in Rev. Proc. 2016-58,
2016-51 I.R.B. 839. The applicable
interest rate and loss payment
patterns for 2014 and 2015 are
published in Rev. Proc. 2014-59,
2014-47 I.R.B. 843 as modified by
Rev. Proc. 2015-24, 2015-13 I.R.B.
822 and Rev. Proc. 2015-52, 2015-45
I.R.B 638, respectively.
Corporations having sufficient
historical experience to determine a
loss payment pattern may, under
certain circumstances, elect under
section 846(e) to use their own
historical experience (instead of the
loss payment patterns determined by
the IRS). If this election is made, the
loss payment patterns will be based
on the most recent calendar year for
which an annual statement was filed
before the beginning of the accident
year. The election will not apply to any
international or reinsurance line of
business. If the corporation makes
this election, check the “Yes” column
for question 9 in Schedule M, Other
Information. For more information, see
section 846(e), Regulations section
1.846-2, and Rev. Proc. 92-76,
1992-1 C.B. 453.
Section 807(d)(4)(A)(ii) permits an
election to recompute the federal
interest rate every 5 years. In general,
a life insurance company would apply
the greater of the AFIR or the
prevailing SAIR for the calendar year
in which the contract is issued and the
following 4 calendar years. In the 5th
calendar year after the calendar year
in which the contract was issued, the
life insurance company would begin
using the AFIR in effect for that 5th
calendar year or the prevailing SAIR
for the calendar year in which the
contract was issued, whichever is
greater. This rate would then remain
in effect for the 4 subsequent years.
For each subsequent 5-year period, a
similar recomputation would be
required. Once made, the election is
effective for contracts issued during
that calendar year and any
subsequent years, and may only be
revoked with the consent of the IRS.
Line 3. Supplementary contracts.
Enter the amount (discounted at the
appropriate rate of interest) necessary
to satisfy the obligations under
insurance and annuity contracts, but
only if the obligations do not involve

(at the time the computation is made)
life, accident, or health contingencies.
For this item, the appropriate rate
of interest is the higher of the
prevailing SAIR at the time the
obligation first did not involve life,
accident, or health contingencies or
the rate of interest assumed by the
corporation (at that time) in
determining the guaranteed benefit.
However, the amount of any contract
may not be less than the net
surrender value of the contract.
Line 4. Dividend accumulations
and other amounts. Enter the total
dividend accumulations and other
amounts held as interest in
connection with insurance and annuity
contracts.
Line 5. Advance premiums. Enter
the total premiums received in
advance and liabilities for premium
deposit funds. See section 807(e)(7)
(A) for special rules for treatment of
certain nonlife reserves.
Line 6. Special contingency reserves. Enter the total reasonable
special contingency reserves under
contracts of group term life insurance
or group accident and health
insurance, which are established and
maintained for the provision of
insurance on retired lives, premium
stabilization, or for a combination
thereof.
Line 8. Increase (decrease) in reserves. In figuring the amount on
line 8, any decrease in reserves must
be computed without any reduction of
the closing balance of section 807
reserves by the policyholders' share
of tax-exempt interest.
Note. In figuring the company's and
policyholders' share percentages,
carry the computations to enough
decimal places to ensure substantial
accuracy and to eliminate any
significant error in the resulting tax.
Lines 9 and 12. Do not include any
of the interest income received on an
ESOP loan made prior to August 21,
1996. For binding contract and
refinancing rules, see Public Law
104-188, section 1602.
Line 12. If there is an increase in
reserves, enter the amount from
page 1, line 8. If there is a decrease in
reserves, see the instructions for
line 2, page 1.
-20-

Line 13. Do not include the exempt
portion of any of the interest income
received on an ESOP loan made prior
to August 21,1996. For binding
contract and refinancing rules, see
Public Law 104-188, section 1602.
Line 16. In computing the amount
entered on line 16, any decrease in
reserves must be figured without any
reduction of the closing balance of
section 807 reserve items by the
policyholders' share of tax-exempt
interest.
Line 18a. A policyholder dividend is
any dividend or similar distribution to
policyholders in their capacity as
such.
Enter on line 18a policyholder
dividends paid or credited (including
an increase in benefits) where the
amount is not fixed in the contract but
depends on the corporation's
experience or management's
discretion.
Also, under section 808(e), any
policyholder dividend which (a)
increases either the cash surrender
value of the contract or other benefits
payable under the contract or (b)
reduces the premium otherwise
required to be paid, is treated as paid
to and returned by the policyholder to
the company as a premium. Include
these amounts in income on line 1,
page 1.
Line 18b. Excess interest means any
amount in the nature of interest:
Paid or credited to policyholders in
their capacity as such, and
In excess of interest determined at
the prevailing SAIR for such contract.
Line 18c. Premium adjustment
means any reduction in the premium
under an insurance or annuity
contract which (except for the
reduction) would have been required
to be paid under the contract.
Line 18d. Experience-rated refund
means any refund or credit based on
the experience of the contract or
group involved.
Line 28. Multiply gross investment
income (line 9) by 90% or, in the case
of gross investment income related to
assets held in segregated asset
accounts under variable contracts, by
95%. Enter the result on line 28.

Instructions for Form 1120-L (2016)

Schedule G—Policy
Acquisition Expenses

For purposes of section 848(b), all life
insurance company members of the
same controlled group are treated as
one company. Any deduction
determined for the group must be
allocated among the life insurance
companies in the group in such a
manner as the IRS may prescribe.
Note. Policy acquisition expenses for
an annuity or life insurance contract
that includes a qualified long-term
care insurance contract as part of, or
as a rider on, the annuity or life
insurance contract, must be
capitalized at the rate of 7.7 % of the
net premiums. See section 848(e)(6)
for more information.
Line 1. Gross premiums and other
consideration. Generally, gross
premiums and other consideration is
the total of:
1. All premiums and other
consideration (other than amounts on
reinsurance agreements), and
2. Net positive consideration for
any reinsurance agreement (see
Regulations section 1.848-2(b)).
Also include on this line:
Advanced premiums,
Amounts in a premium deposit fund
or similar account, as permitted by
Regulations section 1.848-2(b)(3),
Fees,
Assessments,
Amounts that the insurance
company charges itself representing
premiums with respect to benefits for
its employees (including full-time
insurance salesmen treated as
employees under section 7701(a)
(20)), and
The value of a new contract issued
in an exchange described in
Regulations section 1.848-2(c)(2) or
(3).
Line 2. Return premiums and premiums and other consideration incurred for reinsurance. For
purposes of section 848(d)(1)(B) and
Regulations section 1.848-2(e), return
premiums means amounts (other than
policyholder dividends or claims and
benefit payments) returned or
credited to the policyholder. See
Regulations sections 1.848-2(f) and
1.848-3 for how to treat amounts
returned to another insurance
Instructions for Form 1120-L (2016)

company under a reinsurance
agreement.
Line 5. The entries in columns 5(a),
(b), or (c) may be positive or negative.
Line 6. If the sum of columns 5(a),
(b), and (c) is negative, enter this
negative amount on line 6 and
enter -0- on lines 7 and 8. The result is
a negative capitalization amount
under section 848(f).
Line 9. General deductions. These
are deductions under sections 161
through 198, relating to itemized
deductions, and sections 401 through
424, relating to pension,
profit-sharing, stock bonus plans, etc.
Also, include on this line ceding
commissions incurred for the
reinsurance of a specified insurance
contract. Do not include amortization
deductions of specified policy
acquisition expenses under section
848(a) or (b). Skip line 9 if the
corporation has elected out of the
general deductions limitation. See
Regulations section 1.848-2(g)(8).
Note. If interest expense is included
on line 9, do not also include it on
page 1, line 15a.
Line 13. Unamortized specified
policy acquisition expenses from
prior years. Enter the balance of
unamortized specified policy
acquisition expenses from prior years
as of the beginning of the tax year.
See section 848(f)(1)(B).
Line 16. Phase-out amount. The
amount of amortization for members
of a controlled group and the
phase-out of the group's specified
policy acquisition expenses under
section 848(b) must be allocated to
each member in proportion to that
member's specified policy acquisition
expenses for the tax year.

Schedule H—Small Life
Insurance Company
Deduction

To qualify for the small life insurance
company deduction, a life insurance
company must have less than:
$15 million of tentative LICTI, and
$500 million in assets.
The deduction for qualifying small
life insurance companies is 60% of
the first $3 million of tentative LICTI for
the tax year. If tentative LICTI
exceeds $3 million, the deduction is
-21-

phased out. The reduction in the
deduction is equal to 15% of the
tentative LICTI for the tax year that
exceeds $3 million.
In computing the small life
insurance company deduction, all life
insurance company members of the
same controlled group are treated as
one company. Any small life
insurance company deduction
determined for the group must be
allocated among the life insurance
companies in the group in proportion
to their respective tentative LICTIs.
Do not include any items from
noninsurance businesses when
figuring tentative LICTI for purposes of
computing the small life insurance
company deduction.
Noninsurance business generally
means any activity which is not an
insurance business. However, under
section 806(b)(3)(B), any activity
which is not an insurance business
shall be treated as an insurance
business if:
1. It is of a type traditionally carried
on by life insurance companies for
investment purposes, but only if the
carrying on of the activity (other than
real estate) does not constitute the
active conduct of a trade or business,
or
2. It involves the performance of
administrative services in connection
with plans providing life insurance,
pension, or accident and health
benefits.
For the assets test, the assets of all
members of a controlled group, as
defined in section 806(c)(3), must be
included, whether or not they are life
insurance companies. For information
regarding the valuation of assets, see
the instructions for Schedule L, Part I.

Schedule I—Limitation on
Noninsurance Losses

Section 806(b)(3)(C) provides that, in
computing LICTI, any loss from
noninsurance business (defined
above in the instructions for
Schedule H) is limited to the smaller
of:
35% of the loss, or
35% of LICTI (computed by
excluding any noninsurance loss
included in arriving at LICTI on line 24,
page 1).

For more information on either the
computation of the allowable loss
deduction or on applicable carryback
provisions, see section 1503(c).

Schedule J
Part I—Shareholders Surplus
Account

Any stock life insurance company that
had a policyholder’s surplus account
(PSA) on December 31, 1983, will
continue to maintain a shareholder’s
surplus account (SSA). See section
815(c)(1) for more information.
Line 2d. Do not include the increase
in cash value for section 264(f)
policies.
Line 4. In figuring the tax liability on
line 4, adjustments must be made for
any year in which the alternative
minimum tax is imposed or the
minimum credit has been taken.
Line 6. Enter all amounts treated
under section 815 as distributions to
shareholders.
Any distribution to shareholders is
treated as having been made first out
of the SSA, to the extent thereof.

Part II—Policyholders Surplus
Account

Any stock life insurance company that
had an existing policyholder’s surplus
account (PSA) on December 31,
1983, will continue to maintain the
account. See section 815(d)(1). While
no additions can be made to this
account, it must be decreased by
amounts specified in section 815(d)
(3). Also, section 815(f) provides that,
in general, the provisions of
subsections (d), (e), (f), and (g) of
section 815 as in effect before the
enactment of the Tax Reform Act of
1984 (“Act of 1984”) continue to apply
for any PSA that had a balance as of
December 31, 1983.
Amounts subtracted from the PSA
for a tax year are added to LICTI and
are subject to tax under section 801.
Line 8. If the balance at the end of
the preceding tax year differs from the
balance at the beginning of the
current tax year (for example, due to
section 815(d)(5) as in effect prior to
the Act of 1984), attach a statement
showing the adjustments made. Prior
to the Act of 1984, section 815(d)(5)
provided that, if any addition to the

PSA increases or creates a loss from
operations and part or all of the loss
cannot be used in any other year to
reduce LICTI, then the loss will reduce
the PSA at the time that the addition
was made. In this case, the beginning
balance of the PSA must be adjusted
before any subtractions for the current
tax year are made.
Line 9b. To figure the tax increase
due to the amount entered on line 9a:
1. Subtract the corporation's tax
rate from 100%,
2. Divide the distributions on
line 9a by the result of step 1,
3. Subtract the amount on line 9a
from the result of step 2, and
4. Enter the result of step 3 on
line 9b.
Line 9c. To figure the amount to
enter on line 9c:
1. Determine the total amount to
be subtracted from the PSA under
sections 815(d)(1) and 815(d)(4) as in
effect prior to the Act of 1984 (do this
only after the amounts on lines 9a and
9b are subtracted from the beginning
balance in the PSA),
2. Add 100% to the corporation's
tax rate,
3. Divide the result of step 1 by the
result of step 2, and
4. Enter the result of step 3 on
line 9c. The amount entered on line 9c
must be added to the SSA at the
beginning of the next tax year.
Line 9d. Subtract the result of step 3,
line 9c, from the result of step 1,
line 9c. Enter the result on line 9d.
Line 9e. Enter the total amount to be
subtracted from the PSA under
section 815(d)(2) as in effect prior to
the Act of 1984. At that time, section
815(d)(2) provided that if, for any tax
year, a corporation was not an
insurance company, or if for any 2
successive tax years a corporation
was not a life insurance company,
then any balance remaining in the
PSA at the end of the last tax year that
the corporation was a life insurance
company must be included in taxable
income for that tax year.

-22-

Schedule K—Tax
Computation
Line 1. If the corporation is a member
of a controlled group, check the box
on line 1. Complete and attach
Schedule O (Form 1120), Consent
Plan and Apportionment Schedule for
a Controlled Group. Component
members of a controlled group must
use Schedule O (Form 1120) to report
the apportionment of taxable income,
income tax, and certain tax benefits
between the members of the group.
See Schedule O (Form 1120) and the
instructions for Schedule O for more
information.
Line 2. If the corporation is a member
of a controlled group, and is filing
Schedule O (Form 1120), enter the
corporation's tax from Part III of
Schedule O.
Most corporations that are not
members of a controlled group and
are not filing a consolidated return
figure their tax by using the Tax Rate
Schedule below.
Tax Rate Schedule
If taxable income on line 27, page 1 is:

Over—

But not
over—

Tax is:

Of the
amount
over—

$0
$50,000
15%
$0
50,000
75,000
$ 7,500 + 25%
50,000
75,000
100,000
13,750 + 34%
75,000
100,000
335,000
22,250 + 39%
100,000
335,000 10,000,000
113,900 + 34%
335,000
10,000,000 15,000,000 3,400,000 + 35% 10,000,000
15,000,000 18,333,333 5,150,000 + 38% 15,000,000
18,333,333
----35%
0

Note. Gain recognized by a life
insurance company from the
redemption of market discount bonds
issued before July 19, 1984, and
acquired on or before September 25,
1985, is taxed at a rate of 31.6% only
if it is less than the tax that otherwise
would be imposed. See Public Law
99-514, section 1011(d) as amended
by Public Law 100-647. On the dotted
line to the left of line 2, write “Tax
differential rate of 31.6% used” and
the amount.
Deferred tax under section
1291. If the corporation was a
shareholder in a passive foreign
investment company (PFIC) and
received an excess distribution or
disposed of its investment in the PFIC
during the year, it must include the
Instructions for Form 1120-L (2016)

total increase in taxes due under
section 1291(c)(2) (from Form 8621)
in the total for line 2. On the dotted
line to the left of line 2, enter “Sec.
1291” and the amount.
Do not include on line 2 any
interest due under section 1291(c)(3).
Instead, include the amount of interest
owed on Schedule K, line 9.
For more information on reporting
the deferred tax and interest, see the
Instructions for Form 8621.
Additional tax under section
197(f). A corporation that elects to
recognize gain and pay tax on the
sale of a section 197 intangible under
the related person exception to the
anti-churning rules should include any
additional tax due in the total for
line 2. On the dotted line next to line 2,
enter “Section 197” and the amount.
See section 197(f)(9)(B)(ii).
Line 3. Alternative minimum tax
(AMT).
A corporation that is not a
small corporation exempt
CAUTION from the AMT may be
required to file Form 4626, Alternative
Minimum Tax—Corporations, if it
claims certain credits, even though it
does not owe any AMT. See the
Instructions for Form 4626 for details.

!

Unless the corporation is treated as
a small corporation exempt from the
AMT, it may owe the AMT if it has any
of the adjustments and tax preference
items listed on Form 4626. A life
insurance company must file Form
4626 if its LICTI before the operations
loss deduction, combined with these
adjustments and tax preference items,
is more than the smaller of $40,000 or
the life insurance company's
allowable exemption amount (from
Form 4626). For this purpose, taxable
income does not include the
operations loss deduction.
See Form 4626, for definitions and
details on how to figure the tax.
Note. See section 56(g)(4)(B)(ii) for
special rules for life insurance
companies for the computation of
adjusted current earnings.
Line 5a. Foreign tax credit. To find
out if a corporation can take this credit
for payment of income tax to a foreign
country or U.S. possession, see Form
1118, Foreign Tax
Credit—Corporations.
Instructions for Form 1120-L (2016)

Line 5b. Credit from Form 8834.
Enter any qualified electric vehicle
passive activity credits from prior
years allowed for the current year
from Form 8834, Electric Vehicle
Credit. Attach Form 8834. Include on
line 5b any credits from Form 5735,
American Samoa Economic
Development Credit. See the
Instructions for Form 5735. Attach
Form 5735, if applicable.
Line 5c. General business credit.
Enter on line 5c the corporation's
allowable credit from Form 3800, Part
II, line 38.
The corporation is required to file
Form 3800 to claim most business
credits. See the Instructions for Form
3800 for exceptions. For a list of
allowable credits, see Form 3800.
Also, see the applicable credit form
and its instructions.
Line 5d. Credit for prior year minimum tax. To figure the minimum tax
credit and any carryforward of that
credit, complete and attach Form
8827.
Line 5e. Bond credits from Form
8912. Enter the allowable credits
from Form 8912, Credit to Holders of
Tax Credit Bonds, line 12.
Line 8. Foreign corporations. A
foreign corporation carrying on a life
insurance business in the United
States is taxed as a domestic life
insurance company on its income
effectively connected with the conduct
of a trade or business in the United
States (see sections 864(c) and 897
for definition).
Generally, any other U.S.-source
income received by the foreign
corporation is taxed at 30% (or at a
lower treaty rate) under section 881. If
the corporation has this income,
attach a statement showing the kind
and amount of income, the tax rate,
and the amount of tax. Enter the tax
on line 8. However, see Reduction of
section 881 tax, later.
Note. Interest received from certain
portfolio debt investments that were
issued after July 18, 1984, is not
subject to the tax. See section 881(c).
See section 842 for more
information.
Minimum effectively connected
net investment income. See
section 842(b) and Notice 89-96,
-23-

1989-2 C.B. 417, for the general rules
for computing this amount. Also, see
Rev. Proc. 2016-46, 2016-37 I.R.B
345, for the domestic asset/liability
percentages and domestic yields
needed to compute this amount.
Any additional income required by
section 842(b) must be included in
LICTI (for example, line 7, page 1).
Reduction of section 881 tax.
Additional taxes resulting from the net
investment income adjustment may
offset a corporation's section 881 tax
on U.S.-source income. The tax
reduction is determined by multiplying
the section 881 tax by the ratio of the
amount of income adjustment to
income subject to the section 881 tax,
computed without the exclusion for
interest on state and local bonds or
income exempted from taxation by
treaty (section 842(c)(2)). Attach a
statement showing how the reduction
of section 881 tax was figured. Enter
the net tax imposed by section 881 on
line 8.
Note. Section 842(c)(1) requires that
foreign life insurance companies
make the investment income
adjustment before claiming a small life
insurance company deduction.
Line 9. Other taxes. Include any of
the following taxes and interest in the
total on line 9. Check the appropriate
box(es) for the form, if any, used to
figure the total.
Recapture of investment credit.
If the corporation disposed of
investment credit property or changed
its use before the end of its useful life
or recovery period, it may owe tax.
See Form 4255, Recapture of
Investment Credit.
Recapture of low-income
housing credit. If the corporation
disposed of property (or there was a
reduction in the qualified basis of the
property) for which it took the
low-income housing credit and the
corporation did not follow the
procedures that would have
prevented recapture of the credit, it
may owe a tax. See Form 8611,
Recapture of Low-Income Housing
Credit.
Alternative tax on qualifying
shipping activities. Enter any
alternative tax on qualifying shipping
activities from Form 8902. Check the
“Other” box and attach Form 8902.

Other. Additional taxes and
interest amounts can be included in
the total entered on line 9. Check the
box for “Other” if the corporation
includes any additional taxes and
interest such as the items discussed
below. See How to report below for
details on reporting these amounts on
an attached statement.
Recapture of Indian employment
credit. Generally, if an employer
terminates the employment of a
qualified employee less than 1 year
after the date of initial employment,
any Indian employment credit allowed
for a prior tax year because of wages
paid or incurred to that employee
must be recaptured. For details, see
Form 8845 and section 45A.
Recapture of new markets credit
(see Form 8874, New Markets
Credit).
Recapture of employer-provided
childcare facilities and services credit
(see Form 8882, Credit for
Employer-Provided Childcare
Facilities and Services).
Interest on deferred tax attributable
to certain nondealer installment
obligations (section 453A(c)).
Interest due on deferred gain
(section 1260(b)).
Interest due under section 1291(c)
(3). See Form 8621 and the
Instructions for Form 8621.
How to report. If the corporation
checked the “Other” box, attach a
statement showing the computation of
each item included in the total for
line 9 and identify the applicable Code
section and the type of tax or interest.
Line 10. Total tax. Include any
deferred tax on the termination of a
section 1294 election applicable to
shareholders in a qualified electing
fund in the amount entered on line 10.
Subtract any deferred tax on the
corporation's share of undistributed
earnings of a qualified electing fund
(see Form 8621).
How to report. Attach a statement
showing the computation of each item
included in, or subtracted from, the
total for line 10. On the dotted line
next to line 10, specify (a) the
applicable Code section, (b) the type
of tax, and (c) the amount of tax.

Schedule L

All filers must complete Parts I and II
of Schedule L.

Note. Foreign life insurance
companies should report assets and
insurance liabilities for their U.S.
business only.

Part I—Total Assets

For Schedule L, assets mean all
assets of the corporation. In valuing
real property and stocks, use fair
market value; for other assets, use the
adjusted basis as determined under
section 1011 and related sections,
without regard to section 818(c). An
interest in a partnership or trust is not
itself treated as an asset of the
corporation. Instead, the corporation
is treated as actually owning its
proportionate share of the assets held
by the partnership or trust. The value
of the corporation's share of these
assets should be listed on line 3.

Part II—Total Assets and Total
Insurance Liabilities
The information provided in
Part II should conform with the
CAUTION “Assets” and “Liabilities,
Surplus, and Other Funds” sections of
the NAIC Annual Statement.

!

Foreign life insurance companies
must maintain a minimum surplus of
U.S. assets over their U.S. insurance
liabilities. The minimum required
surplus is determined by multiplying
their U.S. insurance liabilities by a
percentage determined by the IRS.
The IRS determines the percentage
from data supplied by domestic life
insurance companies in Schedule L,
Part II. See section 842.
For Schedule L, total insurance
liabilities means the sum of the
following amounts as of the end of the
tax year.
1. Total reserves as defined in
section 816(c); plus
2. The items referred to in
paragraphs (3), (4), (5), and (6) of
section 807(c), to the extent such
amounts are not included in total
reserves.
Foreign life insurance companies,
see Notice 89-96 for more information
on determining total insurance
liabilities on U.S. business.

Schedule M—Other
Information

Complete the items that apply to the
corporation.
-24-

Question 6. Check the “Yes” box if:
The corporation is a subsidiary in
an affiliated group (defined below),
but is not filing a consolidated return
for the tax year with that group, or
The corporation is a subsidiary in a
parent-subsidiary controlled group.
For a definition of a parent-subsidiary
controlled group, see the instructions
for Schedule O (Form 1120).
Any corporation that meets either
of the requirements above should
check the “Yes” box. This applies
even if the corporation is a subsidiary
member of one group and the parent
corporation of another.
Note. If the corporation is an
“excluded member” of a controlled
group (see definition in the
Instructions for Schedule O (Form
1120)), it is still considered a member
of a controlled group for this purpose.
Affiliated group. An affiliated group
is one or more chains of includible
corporations (section 1504(a))
connected through stock ownership
with a common parent corporation.
The common parent must be an
includible corporation and the
following requirements must be met.
1. The common parent must own
directly stock that represents at least
80% (0.80) of the total voting power
and at least 80% (0.80) of the total
value of the stock of at least one of the
other includible corporations.
2. Stock that represents at least
80% (0.80) of the total voting power
and at least 80% (0.80) of the total
value of the stock of each of the other
corporations (except for the common
parent) must be owned directly by one
or more of the other includible
corporations.
For this purpose, “stock” generally
does not include any stock that (a) is
nonvoting, (b) is nonconvertible, (c) is
limited and preferred as to dividends
and does not participate significantly
in corporate growth, and (d) has
redemption and liquidation rights that
do not exceed the issue price of the
stock (except for a reasonable
redemption or liquidation premium).
See section 1504(a)(4).
Question 8. Check the “Yes” box if
one foreign person owned at least
25% (0.25) of (a) the total voting
power of all classes of stock of the
corporation entitled to vote, or (b) the
Instructions for Form 1120-L (2016)

total value of all classes of stock of the
corporation.
The constructive ownership rules of
section 318 apply in determining if a
corporation is foreign owned. See
section 6038A(c)(5) and the related
regulations.
Enter on line 8a the percentage
owned by the foreign person specified
in question 8. On line 8b, write the
name of the owner's country.
Note. If there is more than one
25%-or-more foreign owner, complete
lines 8a and 8b for the foreign person
with the highest percentage of
ownership.
Foreign person. The term “foreign
person” means:
An individual who is not a citizen or
resident of the United States;
An individual who is a citizen or
resident of a U.S. possession who is
not otherwise a citizen or resident of
the United States;
Any partnership, association,
company, or corporation that is not
created or organized in the United
States;
Any foreign estate or trust within the
meaning of section 7701(a)(31); or
A foreign government (or one of its
agencies or instrumentalities) to the
extent that it is engaged in the
conduct of a commercial activity as
described in section 892.
However, the term "foreign person"
does not include any foreign person
who consents to the filing of a joint
income tax return.

Instructions for Form 1120-L (2016)

Owner's country. For individuals,
the term “owner's country” means the
country of residence. For all others, it
is the country where incorporated,
organized, created, or administered.
Requirement to file Form 5472. If
the corporation checked “Yes” to
question 8, it may have to file Form
5472, Information Return of a 25%
Foreign-Owned U.S. Corporation or a
Foreign Corporation Engaged in a
U.S. Trade or Business. Generally, a
25% foreign-owned corporation that
had a reportable transaction with a
foreign or domestic related party
during the tax year must file Form
5472. See the Instructions for Form
5472 for filing instructions and
penalties for failure to file.
Item 12. If the corporation has an
operations loss deduction (OLD), it
generally may elect under section
810(b)(3) to waive the entire
carryback period for the OLD and
instead carry the OLD forward to
future tax years. To do so, check the
box on line 12 and file the tax return
by its due date, including extensions.
Do not attach the statement described
in Temporary Regulations section
301.9100-12T. Once made, the
election is irrevocable.
Corporations filing a consolidated
return that elect to waive the entire
carryback period for the group must
also attach the statement required by
Regulations section 1.1502-21(b)(3)
or the election will not be valid.

-25-

Item 13. Enter the amount of the
operations loss carryover to the tax
year from prior years, even if some of
the loss is used to offset income on
this return. The amount to enter is the
total of all operating losses generated
in prior years but not used to offset
income (either as a carryback or
carryover) in a tax year prior to 2016.
Do not reduce the amount by any
OLD reported on line 21b, page 1.
Item 14. Complete Item 14 to identify
the state where the annual statement
used to prepare the tax return was
filed.
Question 15. A corporation that files
Form 1120-L must file Schedule UTP
(Form 1120), Uncertain Tax Position
Statement, with its 2016 income tax
return if:
For 2016, the corporation's total
assets equal or exceed $50 million;
The corporation or a related party
issued audited financial statements
reporting all or a portion of a
corporation's operations for all or a
portion of the corporation's tax year;
and
The corporation has one or more
tax positions that must be reported on
Schedule UTP.
Attach Schedule UTP to the
corporation's income tax return. Do
not file it separately. A taxpayer that
files a protective Form 1120-L must
also file Schedule UTP if it satisfies
the requirements set forth above.
For details, see the Instructions for
Schedule UTP.

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estimates shown in the instructions for their business income tax return.
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Do not send the tax form to this address. Instead, see Where To File, earlier.

-26-

Instructions for Form 1120-L (2016)

Index
A
Accounting methods, change
in 5
Accounting period (tax year) 5
Address change 8
Affiliated group 24
Amended return 8
Amortization 10
Annual Statement 4
Assembling the return 4
B
Backup withholding 16
Business start-up
expenses 10
C
Charitable contributions 13
Consolidated return 7
Controlled group:
Member of 22
Parent-subsidiary 24
D
Deductions 10
Definitions:
Insurance company 2
Life insurance company 2
Reserves test 2
Depository methods of tax
payment 4
Disclosure statement 6
Dues, membership and
other 14
E
Electronic deposit of tax refund
of $1 million or more 16
Electronic Federal Tax
Payment System
(EFTPS) 4

Electronic Filing 2
Employer identification number
(EIN) 8
Estimated tax payments 15
Estimated tax penalty 5, 16
Excess interest 20
Experience-rated refund 20
Extension of time to file 3
F
Final return 8
Foreign corporations 23
Foreign person 25
Foreign tax credit 23
Forms and publications, how
to get 1
Future Developments 1

Prior year, credit for 23
N
Name change 8
O
Operations loss deduction 14
Other deductions 11
Other taxes 23
Overpaid 15
Owner's country 25
Ozone-depleting chemicals,
credit for tax on 15
P
Paid preparer authorization 3
Penalties 5, 16
Pension, profit-sharing, etc.
plans 13
Period covered 7
Policyholder dividends 20
Premium adjustment 20
Private delivery services 3

G
General business credit 23
Golden parachute
payments 10
Gross premiums and other
consideration 9
I
Interest due on late payment of
tax 5
L
Life insurance company
taxable income 9
Limitation on
dividends-received
deduction 17
Limitations on deductions 10
Lobbying expenses,
nondeductibility 14
Losses incurred 11
M
Minimum tax:
Alternative minimum tax 23

R
Recordkeeping 6
Refundable credits 15
Return premiums 9
S
Schedule:
A 16
B 18
F 19
G 21
H 21
I 21
J, Part I 22
J, Part II 22
K 22
L, Part I 24
L, Part II 24
M 24

-27-

Schedule M-3 (Form
1120-L) 8
Section 953 elections 8
Special estimated tax
payments:
Prior year(s) payments to
be applied 15
Tax benefit rule 15
T
Tax and payments:
Estimated tax payments 15
Prior year(s) special
estimated tax payments
to be applied 15
Special estimated tax
payments 15
Taxpayer Advocate Service 1
Tax rate schedule 22
Transactions between related
taxpayers 10
Travel, meals, and
entertainment 14
W
What's New 1
When to file 2
Where to file 3
Who must file 2
Foreign Life Insurance
Companies 2
Mutual savings banks
conducting life insurance
business 2
Other insurance
companies 2
Who must sign 3
Worksheet for Schedule A 17