REVENUE RULE 91-59
1991-2 C.B. 347, 1991-45 I.R.B. 6.
Internal Revenue Service
Revenue Ruling
TAXATION OF DISC INCOME TO SHAREHOLDERS
Published: November 12, 1991
Section 995 Taxation of DISC Income to Shareholders
Taxation of DISC income to shareholders. The "base period T-bill rate" for the period ending September 30, 1991, is published, as required by section 995(f)(4) of the Code. [Full text in this issue.]
Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an amount equal to the product of the shareholder's DISC-related deferred tax liability for the year and the "base period T-bill rate." Under section 995(f)(4), the base period T-bill rate is the annual rate of interest determined by the Secretary to be equivalent to the average investment yield of United States Treasury bills with maturities of 52 weeks which were auctioned during the one-year period ending on September 30 of the calendar year ending with (or of the most recent calendar year ending before) the close of the taxable year of the shareholder. The base period T- bill rate for the period ending September 30, 1991, is 6.42 percent.
Pursuant to section 6622 of the code, interest must be compounded daily. The table below provides factors for compounding the base period T-bill rate daily for any number of days in the shareholder's taxable year (including a 52-53 week accounting period) for the 1991 base period T-bill rate. To compute the amount of the interest charge for the shareholder's taxable year, multiply the amount of the shareholder's DISC-related deferred tax liability (as defined in section 995(f)(2)) for that year by the base period T-bill rate factor corresponding to the number of days in the shareholder's taxable year for which the interest charge is being computed. Generally, one would use the factor for 365 days. One would use a different factor only if the shareholder's taxable year for which the interest charge being determined is a short taxable year, if the shareholder uses the 52-53 week taxable year, or if the shareholder's taxable year is a leap year.
For the base period T-bill rates for the periods ending in prior years, see Rev. Rul. 86-132, 1986-2 C.B. 137; Rev. Rul. 87-129, 1987-2 C.B. 196; Rev. Rul. 88-94, 1988-2 C.B. 301; Rev. Rul. 89-116, 1989-2 C.B. 197; Rev. Rul. 90-96, 1990-2 C.B. 188.
DRAFTING INFORMATION
The principal author of this revenue ruling is David Bergkuist of the Office of the Associate Chief Counsel (International). For further information about this revenue ruling, contact Mr. Bergkuist on (202) 566-6442 (not a toll-free call).
ANNUAL RATE, COMPOUNDED DAILY
DAYS 6.42 PERCENT FACTOR
| DAYS / 6.42 PERCENT FACTOR | DAYS / 6.42 PERCENT FACTOR | DAYS / 6.42 PERCENT FACTOR |
| 1 0.000175890 2 0.000351812 3 0.000527764 4 0.000703747 5 0.000879761 6 0.001055807 7 0.001231883 8 0.001407990 9 0.001584128 10 0.001760297 11 0.001936497 12 0.002112728 13 0.002288990 14 0.002465283 15 0.002641607 16 0.002817962 17 0.002994348 18 0.003170765 19 0.003347213 20 0.003523693 21 0.003700203 22 0.003876744 23 0.004053316 24 0.004229920 25 0.004406554 26 0.004583220 27 0.004759916 28 0.004936644 29 0.005113402 30 0.005290192 31 0.005467013 32 0.005643865 33 0.005820748 34 0.005997662 35 0.006174608 36 0.006351584 37 0.006528592 38 0.006705631 39 0.006882700 40 0.007059801 41 0.007236934 42 0.007414097 43 0.007591291 44 0.007768517 45 0.007945774 46 0.008123062 47 0.008300381 48 0.008477731 49 0.008655113 50 0.008832526 51 0.009009970 52 0.009187445 53 0.009364951 54 0.009542489 55 0.009720058 56 0.009897658 57 0.010075289 58 0.010252952 59 0.010430646 60 0.010608371 61 0.010786127 62 0.010963915 63 0.011141733 64 0.011319584 65 0.011497465 66 0.011675378 67 0.011853322 68 0.012031297 69 0.012209304 70 0.012387341 71 0.012565411 72 0.012743511 73 0.012921643 74 0.013099806 75 0.013278001 76 0.013456227 77 0.013634484 78 0.013812773 79 0.013991092 80 0.014169444 81 0.014347826 82 0.014526241 83 0.014704686 84 0.014883163 85 0.015061671 86 0.015240211 87 0.015418782 88 0.015597384 89 0.015776018 90 0.015954683 91 0.016133380 92 0.016312108 93 0.016490868 94 0.016669659 95 0.016848481 96 0.017027335 97 0.017206220 98 0.017385137 99 0.017564085 100 0.017743065 101 0.017922076 102 0.018101119 103 0.018280193 104 0.018459299 105 0.018638436 106 0.018817605 107 0.018996805 108 0.019176037 109 0.019355300 110 0.019534595 111 0.019713921 112 0.019893279 113 0.020072669 114 0.020252090 115 0.020431542 116 0.020611026 117 0.020790542 118 0.020970089 119 0.021149668 120 0.021329279 121 0.021508921 122 0.021688594 123 0.021868300 124 0.022048036 |
125 0.022227805 126 0.022407605 127 0.022587437 128 0.022767300 129 0.022947195 130 0.023127122 131 0.023307080 132 0.023487070 133 0.023667091 134 0.023847144 135 0.024027229 136 0.024207346 137 0.024387494 138 0.024567674 139 0.024747886 140 0.024928129 141 0.025108404 142 0.025288711 143 0.025469049 144 0.025649419 145 0.025829821 146 0.026010255 147 0.026190720 148 0.026371217 149 0.026551746 150 0.026732307 151 0.026912899 152 0.027093523 153 0.027274179 154 0.027454867 155 0.027635586 156 0.027816338 157 0.027997121 158 0.028177936 159 0.028358782 160 0.028539661 161 0.028720571 162 0.028901513 163 0.029082487 164 0.029263493 165 0.029444530 166 0.029625600 167 0.029806701 168 0.029987834 169 0.030168999 170 0.030350196 171 0.030531425 172 0.030712685 173 0.030893978 174 0.031075302 175 0.031256658 176 0.031438046 177 0.031619467 178 0.031800919 179 0.031982402 180 0.032163918 181 0.032345466 182 0.032527046 183 0.032708657 184 0.032890301 185 0.033071976 186 0.033253684 187 0.033435423 188 0.033617195 189 0.033798998 190 0.033980833 191 0.034162701 192 0.034344600 193 0.034526531 194 0.034708494 195 0.034890490 196 0.035072517 197 0.035254576 198 0.035436668 199 0.035618791 200 0.035800947 201 0.035983134 202 0.036165353 203 0.036347605 204 0.036529889 205 0.036712204 206 0.036894552 207 0.037076932 208 0.037259344 209 0.037441788 210 0.037624264 211 0.037806772 212 0.037989312 213 0.038171885 214 0.038354489 215 0.038537126 216 0.038719794 217 0.038902495 218 0.039085228 219 0.039267993 220 0.039450791 221 0.039633620 222 0.039816482 223 0.039999375 224 0.040182301 225 0.040365259 226 0.040548250 227 0.040731272 228 0.040914327 229 0.041097414 230 0.041280533 231 0.041463684 232 0.041646867 233 0.041830083 234 0.042013331 235 0.042196611 236 0.042379924 237 0.042563268 238 0.042746645 239 0.042930054 240 0.043113496 241 0.043296969 242 0.043480475 243 0.043664013 244 0.043847584 245 0.044031187 246 0.044214822 247 0.044398489 248 0.044582189 249 0.044765921 |
250 0.044949685 251 0.045133482 252 0.045317311 253 0.045501172 254 0.045685066 255 0.045868992 256 0.046052950 257 0.046236941 258 0.046420964 259 0.046605019 260 0.046789107 261 0.046973227 262 0.047157380 263 0.047341564 264 0.047525782 265 0.047710032 266 0.047894314 267 0.048078628 268 0.048262975 269 0.048447355 270 0.048631766 271 0.048816211 272 0.049000687 273 0.049185197 274 0.049369738 275 0.049554312 276 0.049738919 277 0.049923558 278 0.050108229 279 0.050292933 280 0.050477670 281 0.050662439 282 0.050847240 283 0.051032074 284 0.051216941 285 0.051401840 286 0.051586771 287 0.051771735 288 0.051956732 289 0.052141761 290 0.052326822 291 0.052511917 292 0.052697043 293 0.052882203 294 0.053067395 295 0.053252619 296 0.053437876 297 0.053623166 298 0.053808488 299 0.053993843 300 0.054179230 301 0.054364650 302 0.054550103 303 0.054735588 304 0.054921106 305 0.055106656 306 0.055292240 307 0.055477855 308 0.055663504 309 0.055849185 310 0.056034899 311 0.056220645 312 0.056406424 313 0.056592236 314 0.056778080 315 0.056963957 316 0.057149867 317 0.057335810 318 0.057521785 319 0.057707793 320 0.057893834 321 0.058079907 322 0.058266013 323 0.058452152 324 0.058638324 325 0.058824528 326 0.059010765 327 0.059197035 328 0.059383337 329 0.059569673 330 0.059756041 331 0.059942442 332 0.060128876 333 0.060315342 334 0.060501841 335 0.060688373 336 0.060874938 337 0.061061536 338 0.061248167 339 0.061434830 340 0.061621526 341 0.061808255 342 0.061995017 343 0.062181812 344 0.062368639 345 0.062555500 346 0.062742393 347 0.062929319 348 0.063116279 349 0.063303271 350 0.063490295 351 0.063677353 352 0.063864444 353 0.064051567 354 0.064238724 355 0.064425913 356 0.064613135 357 0.064800391 358 0.064987679 359 0.065175000 360 0.065362354 361 0.065549741 362 0.065737161 363 0.065924614 364 0.066112100 365 0.066299619 366 0.066487171 367 0.066674756 368 0.066862373 369 0.067050024 370 0.067237708 371 0.067425425 |
Rev. Rul. 91-59, 1991-2 C.B. 347, 1991-45 I.R.B. 6.