REVENUE RULE 94-68
1994-2 C.B. 177, 1994-46 I.R.B. 4.
Internal Revenue Service
Revenue Ruling
TAXATION OF DISC INCOME TO SHAREHOLDER
Published: November 14, 1994
§995. - Taxation of DISC Income to Shareholders
Taxation of DISC income to shareholder. The "base period T-bill rate" for the period ending September 30, 1994, is published, as required by section 995(f)(4) of the Code.
Section 995(f)(l) 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, 1994, is 4.55 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 1994 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; Rev. Rul. 91-59, 1991-2 C.B. 347; Rev. Rul. 92-98, 1992-2 C.B. 201; and Rev. Rul. 93-77, 1993-2 C.B. 253.
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) 622-3860 (not a toll-free call).
ANNUAL RATE, COMPOUNDED DAILY
DAYS 4.55 PERCENT FACTOR
| 1 .000124658 2 .000249331 3 .000374019 4 .000498723 5 .000623443 6 .000748178 7 .000872929 8 .000997695 9 .001122477 10 .001247275 11 .001372088 12 .001496916 13 .001621761 14 .001746620 15 .001871496 16 .001996386 17 .002121293 18 .002246215 19 .002371152 20 .002496105 21 .002621074 22 .002746058 23 .002871058 24 .002996074 25 .003121105 26 .003246151 27 .003371213 28 .003496291 29 .003621385 30 .003746494 31 .003871618 32 .003996758 33 .004121914 34 .004247085 35 .004372272 36 .004497475 37 .004622693 38 .004747927 39 .004873176 40 .004998441 41 .005123722 42 .005249018 43 .005374330 44 .005499658 45 .005625001 46 .005750359 47 .005875734 48 .006001124 49 .006126529 50 .006251951 51 .006377388 52 .006502840 53 .006628308 54 .006753792 55 .006879291 56 .007004807 57 .007130337 58 .007255884 59 .007381446 60 .007507023 61 .007632617 62 .007758226 63 .007883850 64 .008009491 65 .008135147 66 .008260818 67 .008386506 68 .008512209 69 .008637927 70 .008763662 71 .008889412 72 .009015177 73 .009140959 74 .009266756 75 .009392568 76 .009518397 77 .009644241 78 .009770101 79 .009895976 80 .010021867 81 .010147774 82 .010273696 83 .010399635 84 .010525589 85 .010651558 86 .010777544 87 .010903545 88 .011029561 89 .011155594 90 .011281642 91 .011407706 92 .011533785 93 .011659881 94 .011785992 95 .011912119 96 .012038261 97 .012164419 98 .012290593 99 .012416783 100 .012542988 101 .012669209 102 .012795446 103 .012921699 104 .013047967 105 .013174251 106 .013300551 107 .013426866 108 .013553198 109 .013679545 110 .013805908 111 .013932286 112 .014058680 113 .014185090 114 .014311516 115 .014437958 116 .014564415 117 .014690888 118 .014817377 119 .014943882 120 .015070402 121 .015196938 122 .015323490 |
123 .015450058 124 .015576641 125 .015703241 126 .015829856 127 .015956487 128 .016083133 129 .016209796 130 .016336474 131 .016463168 132 .016589878 133 .016716603 134 .016843345 135 .016970102 136 .017096875 137 .017223664 138 .017350468 139 .017477289 140 .017604125 141 .017730977 142 .017857845 143 .017984728 144 .018111628 145 .018238543 146 .018365474 147 .018492421 148 .018619384 149 .018746362 150 .018873357 151 .019000367 152 .019127393 153 .019254435 154 .019381493 155 .019508566 156 .019635656 157 .019762761 158 .019889882 159 .020017019 160 .020144172 161 .020271341 162 .020398525 163 .020525726 164 .020652942 165 .020780174 166 .020907422 167 .021034686 168 .021161965 169 .021289261 170 .021416572 171 .021543899 172 .021671243 173 .021798602 174 .021925977 175 .022053367 176 .022180774 177 .022308196 178 .022435635 179 .022563089 180 .022690559 181 .022818045 182 .022945547 183 .023073065 184 .023200599 185 .023328149 186 .023455714 187 .023583296 188 .023710893 189 .023838506 190 .023966136 191 .024093781 192 .024221442 193 .024349119 194 .024476811 195 .024604520 196 .024732245 197 .024859985 198 .024987742 199 .025115514 200 .025243303 201 .025371107 202 .025498927 203 .025626764 204 .025754616 205 .025882484 206 .026010368 207 .026138268 208 .026266183 209 .026394115 210 .026522063 211 .026650027 212 .026778006 213 .026906002 214 .027034014 215 .027162041 216 .027290085 217 .027418144 218 .027546219 219 .027674311 220 .027802418 221 .027930541 222 .028058681 223 .028186836 224 .028315007 225 .028443194 226 .028571398 227 .028699617 228 .028827852 229 .028956103 230 .029084370 231 .029212653 232 .029340953 233 .029469268 234 .029597599 235 .029725946 236 .029854309 237 .029982688 238 .030111083 239 .030239494 240 .030367921 241 .030496364 242 .030624824 243 .030753299 244 .030881790 245 .031010297 246 .031138820 |
247 .031267360 248 .031395915 249 .031524486 250 .031653073 251 .031781677 252 .031910296 253 .032038931 254 .032167583 255 .032296250 256 .032424934 257 .032553633 258 .032682349 259 .032811081 260 .032939828 261 .033068592 262 .033197372 263 .033326168 264 .033454980 265 .033583807 266 .033712651 267 .033841512 268 .033970388 269 .034099280 270 .034228188 271 .034357112 272 .034486053 273 .034615009 274 .034743982 275 .034872971 276 .035001975 277 .035130996 278 .035260033 279 .035389086 280 .035518155 281 .035647240 282 .035776341 283 .035905459 284 .036034592 285 .036163742 286 .036292907 287 .036422089 288 .036551287 289 .036680501 290 .036809731 291 .036938977 292 .037068239 293 .037197517 294 .037326812 295 .037456123 296 .037585449 297 .037714792 298 .037844151 299 .037973526 300 .038102917 301 .038232325 302 .038361748 303 .038491188 304 .038620644 305 .038750115 306 .038879604 307 .039009108 308 .039138628 309 .039268164 310 .039397717 311 .039527286 312 .039656871 313 .039786472 314 .039916089 315 .040045722 316 .040175372 317 .040305038 318 .040434719 319 .040564418 320 .040694132 321 .040823862 322 .040953609 323 .041083371 324 .041213150 325 .041342945 326 .041472757 327 .041602584 328 .041732428 329 .041862287 330 .041992163 331 .042122055 332 .042251964 333 .042381888 334 .042511829 335 .042641786 336 .042771759 337 .042901749 338 .043031754 339 .043161776 340 .043291814 341 .043421868 342 .043551939 343 .043682025 344 .043812128 345 .043942247 346 .044072382 347 .044202534 348 .044332701 349 .044462885 350 .044593086 351 .044723302 352 .044853535 353 .044983783 354 .045114049 355 .045244330 356 .045374628 357 .045504941 358 .045635271 359 .045765618 360 .045895980 361 .046026359 362 .046156754 363 .046287165 364 .046417593 365 .046548037 366 .046678497 367 .046808973 368 .046939466 369 .047069975 370 .047200500 371 .047331041 |
Rev. Rul. 94-68, 1994-2 C.B. 177, 1994-46 I.R.B. 4.