26 USC § 4373 - Exemptions

---
identifier: "/us/usc/t26/s4373"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 4373 - Exemptions"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "4373"
section_name: "Exemptions"
chapter_number: 34
chapter_name: "TAXES ON CERTAIN INSURANCE POLICIES"
subchapter_number: "A"
subchapter_name: "Policies Issued By Foreign Insurers"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 522; Pub. L. 85–859, title I, § 141(a), Sept. 2, 1958, 72 Stat. 1301; Pub. L. 94–455, title XIX, § 1904(a)(12), Oct. 4, 1976, 90 Stat. 1813; Pub. L. 100–647, title I, § 1012(q)(13)(A), Nov. 10, 1988, 102 Stat. 3525.)"
---


# § 4373. Exemptions

The tax imposed by section 4371 shall not apply to—

**(1)** **Effectively connected items** Any amount which is effectively connected with the conduct of a trade or business within the United States unless such amount is exempt from the application of section 882(a) pursuant to a treaty obligation of the United States.

**(2)** **Indemnity bond** Any indemnity bond required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States, or to secure a duplicate for, or the payment of, any bond, note, certificate of indebtedness, war-saving certificate, warrant or check, issued by the United States.

---

**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 522; Pub. L. 85–859, title I, § 141(a), Sept. 2, 1958, 72 Stat. 1301; Pub. L. 94–455, title XIX, § 1904(a)(12), Oct. 4, 1976, 90 Stat. 1813; Pub. L. 100–647, title I, § 1012(q)(13)(A), Nov. 10, 1988, 102 Stat. 3525.)

## Editorial Notes

### Amendments

1988—Par. (1).  amended par. (1) generally, substituting provisions relating to effectively connected items for provisions relating to domestic agent.

1976—Par. (1).  substituted “State, or in the District of Columbia, within” for “State, Territory, or District of the United States within”.

1958— reenacted section without change.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

> “The amendment made by subparagraph (A) [amending this section] shall apply with respect to premiums paid after the date 30 days after the date of the enactment of this Act [
> 
> ].”

, , , provided that:

### Effective Date of 1976 Amendment

Amendment by  effective on first day of first month which begins more than 90 days after , see , set out as a note under .