50 largest stock companies
Defined in 1 place of the United States Code.
For purposes of this paragraph, the term “50 largest stock companies” means a group (as determined by the Secretary) of stock life insurance companies which consists of the 50 largest domestic stock life insurance companies which are subject to tax under this part. The Secretary—
(i) shall, for purposes of determining the base period stock earnings rate, exclude from the group determined under the preceding sentence any company which had a negative equity base at any time during 1981, 1982, or 1983,
(ii) shall exclude from such group for any calendar year any company which has a negative equity base, and
(iii) may by regulations exclude any other company which otherwise would have been included in such group if the inclusion of the excluded company or companies would, by reason of the small equity base of such company, seriously distort the stock earnings rate.
The aggregate number of companies excluded by the Secretary under clause (iii) shall not exceed the excess of 2 over the number of companies excluded under clause (ii).
Source
- 1994–present26 U.S.C. § 809Internal Revenue Code · Repealed. Pub. L. 108218, title II, 205(a), Apr. 10, 2004, 118 Stat. 610] · for purposes of this section