Special Loss Discount Account and Special 
Form  8816                                                                                                          OMB No. 1545-0123
(Rev. September 2018)         Estimated Tax Payments for Insurance Companies
Department of the Treasury                              ▶ Attach to tax return. 
Internal Revenue Service                   ▶ Go to www.irs.gov/Form8816 for the latest information.
Name                                                                                                        Employer identification number

Part I      Special Loss Discount Amount

                 Accident year

1      Undiscounted unpaid losses         .

2      Discounted unpaid losses  .        .
3      Special  loss  discount  limitation. 
       Subtract line 2 from line 1     .  .
Part II     Special Loss Discount Account (See instructions.)

4      Balance at the beginning of the year

5      Additions—section 847(4)        .  .  .

6      Subtractions—section 847(5)  .        .
7      Balance at the end of the year. Add 
       lines 4 and 5 and subtract line 6 
       from the result  .   . .  .     .  .  .
Part III    Special Estimated Tax Payments (See instructions.)

8      Balance at the beginning of the year

9      Payments made for year .        .  .  .
10     Prior section 847 payments 
       transferred to current year  .     .  .

11     Payments applied for year  .       .  .
12     Balance at the end of the year. Add 
       lines 8 through 10 and subtract line 
       11 from the result  .  .  .     .  .  .

Section references are to the Internal        account (SLDA), special estimated tax          deduction, enter “Form 8816” and the 
Revenue Code unless otherwise noted.          payments (SETPs), and refundable amount        amount on the dotted line next to line 14 
                                              rules are eliminated.                          on Form 1120, Schedule J, Part III. This will 
Future Developments                                Taxpayers with an existing SLDA balance   assist the IRS in properly accounting for 
For the latest information about              will need to report the entire balance in      your Special Estimated Tax Payments. 
developments related to Form 8816 and its     income for the first tax year beginning after  When to file. Attach Form 8816 to the 
instructions, such as legislation enacted     2017.  Any tax attributable to this            Form 1120-PC, Form 1120-L, or Form 
after they were published, go to              inclusion may be offset by the entire          1120 filed for the tax year of theadditional 
www.irs.gov/Form8816.                         amount of existing SETPs applied.  The         deduction and for eachsubsequent   tax 
                                              excess of the SETPs over the amount of         year that has aremaining  amount of unpaid 
General Instructions                          tax attributable to the income inclusion       lossesresulting from the deduction.
Purpose of form. Form 8816 must befiled       from the SLDA will be treated as estimated 
by insurance companies that electto  take     tax payments under section 6655 for 2018.      Specific Instructions
an additional deduction undersection   847.   Consolidated return. Each member of a          Note: All line references to Form 1120-L, 
Public Law 115-97, the Tax Cuts and Jobs      consolidated group claiming a section847       Form 1120-PC, andForm     1120 are to the 
Act (TCJA), repealed section 847 for tax      deduction must file a separate Form8816.       2018 forms.
years beginning after December 31, 2017.      Do not combine several taxpayerson    one 
For tax years beginning after December 31,    Form 8816. If a consolidatedreturn  is filed 
2017, the election to apply section 847, the  on Form 1120 and one or more members 
additional deduction, special loss discount   of the group is claiming a section 847 

For Paperwork Reduction Act Notice, see instructions.                        Cat. No. 41382N                        Form 8816 (Rev. 9-2018)

Form 8816 (Rev. 9-2018)                                                                                                           Page 2
Part I. Special Loss Discount               Section 847(8) (tax benefit determination)     that SETPshall be treated as an estimated 
Amount                                      requires that if a taxpayer carries back net   taxpayment   made under section 6655. 
                                            operating losses or capital losses that arise  Enter these amountson   Form 1120-PC, 
Accident year. Enter the four-digit         in years after a year in which a section 847   page 1, line 15c, orForm  1120-L, page 1, 
accident year in the space provided atthe   deduction was claimed, the taxpayer must       line 28c. Forpurposes of Form 1120, this 
top of each column. For example,enter       recompute the tax benefit attributable to      amount isincluded  on Form 1120, 
accident year 2018 as 2018.                 the previously claimed section 847             Schedule J, Part III, line 14.
The computation for the SLDA in Part I,     deduction taking into account the loss 
lines 1, 2, and 3 is no longer applicable.  carrybacks. Tax benefits also include those    Paperwork Reduction Act Notice. We 
                                            derived from filing a consolidated return      ask for the information on this form tocarry 
Part II. Special Loss Discount              with another insurance company (without        out the Internal Revenue laws ofthe  United 
Account (SLDA)                              regard to section 1503(c)).                    States. You are required togive us the 
Keep a separate SLDA for each accident      Therefore, if this recomputation changes       information. We need it toensure  that you 
year for which an additional deduction      the amount of the section 847 tax benefit,     are complying withthese   laws and to allow 
under section 847 is claimed. Do not net    the taxpayer must provide a computation        us to figure andcollect the right amount of 
amounts from one year against amounts       schedule and attach it to Form 8816.           tax.
from another year.                          Line 8. The amount entered on this line        You are not required to provide the 
Line 4. Enter the balance in the SLDA at    should be the same as the endingbalance        information requested on a form that is 
the beginning of the year for which this    for this account for the yearimmediately       subject to the Paperwork Reduction Act 
return is filed.                            preceding this year. If theamounts  are        unless the form displays a valid OMB 
Line 5. Section 847 has been repealed. No   different, attach anexplanation.               control number. Books or records relating 
                                                                                           to a form or its instructions must be 
entry is made on line 5.                    Line 9. Section 847 has been repealed.  No     retained as long as their contents may 
Line 6. Enter on this line and on Form      entry is made on line 9.                       become material in the administration of 
1120-PC, Schedule A, line 12; Form          Line 10. Prior section 847 payments            any Internal Revenue law. Generally, tax 
1120-L, page 1, line 6; or Form 1120,page   transferred to the current year are no         returns and return information are 
1, line 10, amounts that arerequired to be  longer applicable since section 847 has        confidential, as required by section 6103.
removed from the SLDAand     included in    been repealed. No entry is made on line 10.    The time needed to complete and file 
income. Section 847 was repealed, so the    Line 11. Enter the total payments applied      this form will vary depending on individual 
entire balance in the SLDA account is       to pay additional tax due as a result of       circumstances. The estimated burden for 
included in income. Line 6 must equal line  including in income amounts required by        business taxpayers filing this form is 
4.  See section 847(5) prior to its         the repeal of section 847. The total of the    approved under OMB control number 
amendment by the TCJA for details.          amount(s)on  line 11 must agree with the       1545-0123 and is included in the estimates 
Line 7. Line 7 must be zero.                amount onForm     1120-PC, page 1, line        shown in the instructions for their business 
                                            15b, or Form1120-L,   page 1, line 28b. For    income tax return.
Part III. Special Estimated Tax             purposes ofForm    1120, this amount is        If you have any comments concerning the 
Payments (SETPs)                            included on Form 1120, Schedule J,             accuracy of these time estimates or 
                                            Part III, line 14.
Use Part III to reconcile the corporation’s                                                suggestions for making this form simpler, we 
SETPs for each tax year it has made a       Line 12. To the extent that an SETP is not     would be happy to hear  from you. See the 
section 847 election.                       used to offset additional tax due (that is, to instructions for Form 1120-PC, Form 1120-L, 
                                            the extent there is abalance  on line 12),     or Form 1120.