An Act consolidated returns of life Insurance companies
PL 91-688 (H.R.19881), enacted 01/12/1971

2072 
PUBLIC LAW91-688-JAN. 12, 1971 
[84 STAT. 
January 12, 1971 
[H. R.19881] 
Public Law 91-688 
AN ACT 
Relating to consolidated returns of life insurance companies, and for other 
purposes. 
Tax returns. 
Life insurance 
companies. 
73 Stat. 133. 
26 u s e 818. 
68A Stat, 367. 
73 Stat. 115. 
68A Stat. 8 
Refund or c 
allowance 
49. 
redit 
Be it enacted hy the Senate and House of Repremrdatlves 
of the 
United States of America in Congress assembled^ That (a) section 
818 of the Internal Revenue Code of 1954 (relating to life insurance 
company accounting provisions) is amended by adding at the end 
thereof the following new subsection: 
"(g) 
COMPUTATION ON CONSOLIDATED RETURNS OF POLICYHOLDERS' 
SHARE OF INVESTMENT YIELD.—For purposes of this part, in the case 
of a life insurance company filing or required to file a consolidated 
return under section 1501 for a taxable year, the computations of 
the policyholders' share of investment yield under subparts B and C 
(including all determinations and computations incident thereto) 
shall be made as if such company were not filing a consolidated 
return." 
(b) The amendment made by subsection (a) shall apply with 
respect to taxable years beginning after December 31, 1957. 
SEC. 2. (a) If— 
(1) any insurance company subject to taxation under section 
802 of the Internal Revenue Code of 1954 filed a consolidated 
return under section 1501 of such Code for any taxable year 
beginning after December 31, 1957, and ending before March 13, 
1969, and 
(2) not later than one year after the date of the enactment 
of this Act— 
(A) such company elects (in such manner as the Secretary 
of the Treasury or his delegate may prescribe) to have this 
section apply, 
(B) such company files consents to the application of this 
section of all companies which at any time during any taxable 
year beginning after December 31, 1957, and ending before 
March 13, 1969, were members of the same affiliated group 
as such company, and 
(C) such company (and each company referred to in 
subparagraph (B)) files a separate return for the first taxable 
year beginning after December 31, 1957, for which such 
company filed a consolidated return and for each taxable 
year thereafter ending before the date of the enactment of 
this Act, 
then not withstanding any law or rule of law the requirement of filing 
a consolidated return shall be replaced by a requirement of separate 
returns for each company referred to in paragraph (2) (C) for each 
taxable year to which paragraph (2) (C) applies with respect to such 
company. Paragraph (2) (C) shall not apply with respect to any com-
pany for any taxable year the allowance of a credit for which is barred 
on the date of the enactment of this Act by res judicata or through the 
operation of section 7121 or section 7122 of the Internal Revenue Code 
of 1954. 
(b) If the making or allowance of any refund or credit, or the 
assessment of any deficiency, of income tax for any taxable year to 
which subsection (a)(2)(C) applies is prevented before the expira-
tion of 2 years after the date of the enactment of this Act by any law 
or rule of law (other than sections 7121 and 7122 of such Code and 
other than res judicata), such refund or credit may nevertheless be 
made or allowed, and such deficiency may nevertheless be assessed. 
84 STAT. ] 
PUBLIC LAW 91-689-JAN. 12, 1971 
2073 
at any time before the expiration of such 2-year period, but only to the 
extent that the overpayment or deficiency is attributable to an election 
made under this section. No interest shall be allowed on any credit 
or refund described in the preceding sentence, and no interest shall be 
assessed with respect to any deficiency described in the preceding 
sentence, for any period before the day which is one year after the date 
of the enactment of this Act. 
SEC. 3. (a) For purposes of applying section 1212(a) of the Inter-
nal Revenue Code of 1954 (as amended by section 512 of the Tax 
Reform Act of 1969) in the case of a corporation which makes an 
election under subsection (b), any net capital loss sustained in a tax-
able year beginning after December 31, 1969, may not be carried back 
to any taxable year beginning before January 1, 1970, for which it 
was subject to taxation under section 802 of such Code, if the carry-
back of such loss would result in an increase in sucli corporation's 
income tax liability for any such taxable year. 
(b) An election to have the provisions of subsection (a) apply shall 
be made by a corporation— 
(1) in such form and manner as the Secretary of the Treasury 
or his delegate may prescribe, and 
(2) not later than the time prescribed by law for filing a claim 
for credit or refund of overpayment of income tax for the first 
taxable year beginning after December 31, 1969, in which such 
corporation sustains a net capital loss. 
(c) The Secretary of the Treasury or his delegate shall prescribe 
such regulations as he determines necessary to carry out the purposes 
of this section. 
Approved January 12, 1971. 
Capital loss 
carryover, corpo-
rations. 
83 Stat. 638. 
26 u s e 1212. 
73 Stat. 115. 
Regulations. 
Public Law 91-689 
AN ACT 
To suspend the duties on certain bicycle parts and accessories until the close of 
December 31,1973. 
January 12, 1971 
[H. R. 19670] 
Be it enacted hy the Senate and House of Rejyresentatives of the 
United States of Ameiica in Congress assembled, That subpart B of 
part 1 of the appendix to title I of the Tariff Act of 1930 (Tariff 
Schedules of the United States; 28 F.R., pt. II, Aug. 17, 1963; 77A 
Stat.; 19 U.S.C. 1202) is amended as follows: 
Immediately preceding item 915.25 insert the following new items: 
Bicycle parts. 
Duty suspen-
77A Stat. 434. 
80 Stat. 71. 
"912,05 
912.10 
Generator lighting sets for bicycles (pro-
vided for in item 663.39, part 3F, scliedule 
6) 
Derailleurs, caliper brakes, drum brakes, 
three-speed hubs incorporating coaster 
brakes, three-speed hubs not incorporat-
ing coaster brakes, click twist grips, click 
stick levers, multiple freewheel sprockets 
(provided for in item 732.36, part 60, 
schedule?) 
Free 
Free 
No change 
No change 
On or before 
12/31/73, 
On or before 
12/31/73. 
SEC. 2. The amendments made by this Act shall apply with respect 
to articles entered, or withdrawn from warehouse, for consumption 
after the date of enactment of this Act. 
Approved January 12, 1971.