A bill to provide that a consent to the application of former section 820 of the Internal Revenue Code of 1954 shall be treated as timely made in certain cases.

Provides that a consent to elect the optional tax treatment of insurance or annuity policies reinsured under modified coinsurance contracts in effect prior to the Tax Equity and Fiscal Responsibility Act of 1982 will be considered as timely made where: (1) a modified coinsurance contract was entered into in July of 1981; (2) the consent was filed on or before June 15, 1982; (3) such consent failed to satisfy the requirements because application for extension of time for filing such return was not timely made; and (4) such reinsured life insurance company was founded before 1720.