REVENUE RULE 95-77
1995-2 C.B. 122, 1995-47 I.R.B. 6
Internal Revenue Service
Revenue Rule
1995 BASE PERIOD T-BILL RATE
Published: November 20, 1995
§995. - Taxation of DISC Income to Shareholders
1995 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 1995, is published, as required by section 995(f)(4) of the Code.
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, 1995, is 6.30 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 1995 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; Rev. Rul. 93-77, 1993-2 C.B. 253; and 94-68, 1994-2 C.B. 177.
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).
1995 Annual Rate, Compounded Daily
| Days 6.30 Percent Factor 1 0.000172603 2 0.000345235 3 0.000517898 4 0.000690590 5 0.000863312 6 0.001036063 7 0.001208845 8 0.001381656 9 0.001554498 10 0.001727369 11 0.001900270 12 0.002073200 13 0.002246161 14 0.002419151 15 0.002592172 16 0.002765222 17 0.002938302 18 0.003111412 19 0.003284551 20 0.003457721 21 0.003630921 22 0.003804150 23 0.003977409 24 0.004150699 25 0.004324018 26 0.004497367 27 0.004670746 28 0.004844155 29 0.005017594 30 0.005191062 31 0.005364561 32 0.005538090 33 0.005711649 34 0.005885237 35 0.006058856 36 0.006232504 37 0.006406183 38 0.006579891 39 0.006753630 40 0.006927398 41 0.007101196 42 0.007275025 43 0.007448883 44 0.007622772 45 0.007796690 46 0.007970639 47 0.008144617 48 0.008318626 49 0.008492664 50 0.008666733 51 0.008840831 52 0.009014960 53 0.009189119 54 0.009363308 55 0.009537527 56 0.009711776 57 0.009886055 58 0.010060364 59 0.010234703 60 0.010409072 61 0.010583471 62 0.010757901 63 0.010932361 64 0.011106850 65 0.011281370 66 0.011455920 67 0.011630500 68 0.011805110 69 0.011979751 70 0.012154421 71 0.012329122 72 0.012503852 73 0.012678613 74 0.012853404 75 0.013028226 76 0.013203077 77 0.013377959 78 0.013552871 79 0.013727813 80 0.013902785 81 0.014077787 82 0.014252820 83 0.014427883 84 0.014602976 85 0.014778099 86 0.014953252 87 0.015128436 88 0.015303650 89 0.015478894 90 0.015654169 91 0.015829473 92 0.016004808 93 0.016180174 94 0.016355569 95 0.016530995 96 0.016706451 97 0.016881937 98 0.017057454 99 0.017233001 100 0.017408578 101 0.017584185 102 0.017759823 103 0.017935491 104 0.018111190 105 0.018286919 106 0.018462678 107 0.018638467 108 0.018814287 109 0.018990137 110 0.019166018 111 0.019341928 112 0.019517870 113 0.019693841 114 0.019869843 115 0.020045875 116 0.020221938 117 0.020398031 118 0.020574155 119 0.020750309 120 0.020926493 121 0.021102708 122 0.021278953 123 0.021455228 124 0.021631534 125 0.021807871 |
126 0.021984238 127 0.022160635 128 0.022337063 129 0.022513521 130 0.022690009 131 0.022866528 132 0.023043078 133 0.023219658 134 0.023396269 135 0.023572910 136 0.023749581 137 0.023926283 138 0.024103016 139 0.024279779 140 0.024456572 141 0.024633396 142 0.024810251 143 0.024987136 144 0.025164051 145 0.025340997 146 0.025517974 147 0.025694981 148 0.025872019 149 0.026049087 150 0.026226186 151 0.026403316 152 0.026580476 153 0.026757666 154 0.026934887 155 0.027112139 156 0.027289422 157 0.027466735 158 0.027644078 159 0.027821452 160 0.027998857 161 0.028176293 162 0.028353759 163 0.028531255 164 0.028708783 165 0.028886341 166 0.029063929 167 0.029241548 168 0.029419198 169 0.029596879 170 0.029774590 171 0.029952332 172 0.030130105 173 0.030307908 174 0.030485742 175 0.030663607 176 0.030841502 177 0.031019428 178 0.031197385 179 0.031375372 180 0.031553390 181 0.031731439 182 0.031909519 183 0.032087629 184 0.032265771 185 0.032443943 186 0.032622145 187 0.032800379 188 0.032978643 189 0.033156938 190 0.033335263 191 0.033513620 192 0.033692007 193 0.033870425 194 0.034048874 195 0.034227354 196 0.034405864 197 0.034584406 198 0.034762978 199 0.034941581 200 0.035120214 201 0.035298879 202 0.035477574 203 0.035656301 204 0.035835058 205 0.036013846 206 0.036192665 207 0.036371514 208 0.036550395 209 0.036729306 210 0.036908249 211 0.037087222 212 0.037266226 213 0.037445261 214 0.037624327 215 0.037803424 216 0.037982551 217 0.038161710 218 0.038340899 219 0.038520120 220 0.038699371 221 0.038878654 222 0.039057967 223 0.039237311 224 0.039416686 225 0.039596093 226 0.039775530 227 0.039954998 228 0.040134497 229 0.040314027 230 0.040493588 231 0.040673180 232 0.040852803 233 0.041032457 234 0.041212142 235 0.041391858 236 0.041571605 237 0.041751384 238 0.041931193 239 0.042111033 240 0.042290904 241 0.042470806 242 0.042650740 243 0.042830704 244 0.043010699 245 0.043190726 246 0.043370784 247 0.043550872 248 0.043730992 249 0.043911143 250 0.044091325 |
251 0.044271538 252 0.044451782 253 0.044632057 254 0.044812363 255 0.044992701 256 0.045173070 257 0.045353469 258 0.045533900 259 0.045714362 260 0.045894855 261 0.046075380 262 0.046255935 263 0.046436522 264 0.046617140 265 0.046797789 266 0.046978469 267 0.047159180 268 0.047339923 269 0.047520696 270 0.047701501 271 0.047882337 272 0.048063205 273 0.048244103 274 0.048425033 275 0.048605994 276 0.048786986 277 0.048968010 278 0.049149065 279 0.049330151 280 0.049511268 281 0.049692417 282 0.049873596 283 0.050054807 284 0.050236050 285 0.050417323 286 0.050598628 287 0.050779964 288 0.050961332 289 0.051142731 290 0.051324161 291 0.051505622 292 0.051687115 293 0.051868639 294 0.052050195 295 0.052231781 296 0.052413399 297 0.052595049 298 0.052776730 299 0.052958442 300 0.053140185 301 0.053321960 302 0.053503766 303 0.053685604 304 0.053867473 305 0.054049373 306 0.054231305 307 0.054413268 308 0.054595263 309 0.054777289 310 0.054959347 311 0.055141435 312 0.055323556 313 0.055505707 314 0.055687891 315 0.055870105 316 0.056052351 317 0.056234629 318 0.056416938 319 0.056599278 320 0.056781650 321 0.056964054 322 0.057146489 323 0.057328955 324 0.057511453 325 0.057693982 326 0.057876543 327 0.058059135 328 0.058241759 329 0.058424415 330 0.058607102 331 0.058789820 332 0.058972570 333 0.059155352 334 0.059338165 335 0.059521010 336 0.059703886 337 0.059886794 338 0.060069733 339 0.060252704 340 0.060435706 341 0.060618741 342 0.060801806 343 0.060984904 344 0.061168032 345 0.061351193 346 0.061534385 347 0.061717609 348 0.061900864 349 0.062084151 350 0.062267470 351 0.062450820 352 0.062634202 353 0.062817616 354 0.063001061 355 0.063184538 356 0.063368046 357 0.063551587 358 0.063735158 359 0.063918762 360 0.064102397 361 0.064286064 362 0.064469763 363 0.064653493 364 0.064837256 365 0.065021049 366 0.065204875 367 0.065388732 368 0.065572621 369 0.065756542 370 0.065940494 371 0.066124479 |
Rev. Rul. 95-77, 1995-2 C.B. 122, 1995-47 I.R.B. 6