Rev. Rul. 98-55, 1998-47 I.R.B. 5.
Internal Revenue Service
Revenue Ruling
1998 BASE PERIOD T-BILL RATE
Published: November 23, 1998
Section 995. - Taxation of DISC Income to Shareholders
1998 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 1998, is published, as required by section 995(f) 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, 1998, is 5.34 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 1998 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; Rev. Rul. 94-68, 1994-2 C.B. 177; Rev. Rul. 95-77, 1995-2 C.B. 122; Rev. Rul. 96-55, 1996-2 C.B. 57; and Rev. Rul. 97- 49, 1997-48 I.R.B. 4.
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) 622-3850 (not a toll-free call.
1998 ANNUAL RATE, COMPOUNDED DAILY
1 .000146301
2 .000292624
3 .000438968
4 .000585334
5 .000731721
6 .000878129
7 .001024559
8 .001171010
9 .001317483
10 .001463977
11 .001610493
12 .001757030
13 .001903588
14 .002050168
15 .002196769
16 .002343392
17 .002490036
18 .002636702
19 .002783389
20 .002930098
21 .003076828
22 .003223579
23 .003370352
24 .003517147
25 .003663963
26 .003810800
27 .003957659
28 .004104539
29 .004251441
30 .004398365
31 .004545309
32 .004692276
33 .004839264
34 .004986273
35 .005133304
36 .005280356
37 .005427430
38 .005574526
39 .005721643
40 .005868781
41 .006015941
42 .006163122
43 .006310325
44 .006457550
45 .006604796
46 .006752064
47 .006899353
48 .007046664
49 .007193996
50 .007341350
51 .007488725
52 .007636122
53 .007783541
54 .007930981
55 .008078443
56 .008225926
57 .008373431
58 .008520957
59 .008668505
60 .008816075
61 .008963666
62 .009111279
63 .009258913
64 .009406569
65 .009554247
66 .009701946
67 .009849667
68 .009997409
69 .010145173
70 .010292959
71 .010440766
72 .010588595
73 .010736445
74 .010884317
75 .011032211
76 .011180126
77 .011328064
78 .011476022
79 .011624003
80 .011772005
81 .011920028
82 .012068073
83 .012216140
84 .012364229
85 .012512339
86 .012660471
87 .012808625
88 .012956800
89 .013104997
90 .013253216
91 .013401456
92 .013549718
93 .013698002
94 .013846307
95 .013994634
96 .014142983
97 .014291354
98 .014439746
99 .014588160
100 .014736595
101 .014885053
102 .015033532
103 .015182033
104 .015330555
105 .015479099
106 .015627665
107 .015776253
108 .015924863
109 .016073494
110 .016222147
111 .016370821
112 .016519518
113 .016668236
114 .016816976
115 .016965738
116 .017114521
117 .017263326
118 .017412153
119 .017561002
120 .017709873
121 .017858765
122 .018007679
123 .018156615
124 .018305573
125 .018454552
126 .018603554
127 .018752577
128 .018901622
129 .019050688
130 .019199777
131 .019348887
132 .019498019
133 .019647173
134 .019796349
135 .019945547
136 .020094766
137 .020244007
138 .020393271
139 .020542555
140 .020691862
141 .020841191
142 .020990541
143 .021139914
144 .021289308
145 .021438724
146 .021588162
147 .021737621
148 .021887103
149 .022036607
150 .022186132
151 .022335679
152 .022485248
153 .022634839
154 .022784452
155 .022934087
156 .023083744
157 .023233422
158 .023383123
159 .023532845
160 .023682589
161 .023832355
162 .023982143
163 .024131953
164 .024281785
165 .024431639
166 .024581515
167 .024731413
168 .024881332
169 .025031274
170 .025181237
171 .025331223
172 .025481230
173 .025631259
174 .025781311
175 .025931384
176 .026081479
177 .026231596
178 .026381735
179 .026531896
180 .026682079
181 .026832284
182 .026982511
183 .027132760
184 .027283031
185 .027433324
186 .027583639
187 .027733976
188 .027884335
189 .028034716
190 .028185118
191 .028335543
192 .028485990
193 .028636459
194 .028786950
195 .028937463
196 .029087998
197 .029238555
198 .029389134
199 .029539735
200 .029690358
201 .029841003
202 .029991670
203 .030142359
204 .030293071
205 .030443804
206 .030594559
207 .030745337
208 .030896136
209 .031046958
210 .031197801
211 .031348667
212 .031499555
213 .031650464
214 .031801396
215 .031952350
216 .032103326
217 .032254324
218 .032405345
219 .032556387
220 .032707451
221 .032858538
222 .033009647
223 .033160777
224 .033311930
225 .033463105
226 .033614302
227 .033765521
228 .033916763
229 .034068026
230 .034219312
231 .034370619
232 .034521949
233 .034673301
234 .034824675
235 .034976072
236 .035127490
237 .035278931
238 .035430393
239 .035581878
240 .035733385
241 .035884914
242 .036036466
243 .036188039
244 .036339635
245 .036491253
246 .036642893
247 .036794555
248 .036946240
249 .037097946
250 .037249675
251 .037401426
252 .037553200
253 .037704995
254 .037856813
255 .038008653
256 .038160515
257 .038312399
258 .038464306
259 .038616234
260 .038768185
261 .038920158
262 .039072154
263 .039224172
264 .039376212
265 .039528274
266 .039680358
267 .039832465
268 .039984594
269 .040136745
270 .040288918
271 .040441114
272 .040593332
273 .040745572
274 .040897835
275 .041050119
276 .041202426
277 .041354756
278 .041507107
279 .041659481
280 .041811878
281 .041964296
282 .042116737
283 .042269200
284 .042421685
285 .042574193
286 .042726723
287 .042879276
288 .043031850
289 .043184447
290 .043337066
291 .043489708
292 .043642372
293 .043795058
294 .043947767
295 .044100498
296 .044253251
297 .044406027
298 .044558825
299 .044711645
300 .044864488
301 .045017353
302 .045170241
303 .045323151
304 .045476083
305 .045629037
306 .045782014
307 .045935014
308 .046088035
309 .046241080
310 .046394146
311 .046547235
312 .046700346
313 .046853480
314 .047006636
315 .047159815
316 .047313015
317 .047466239
318 .047619485
319 .047772753
320 .047926043
321 .048079356
322 .048232692
323 .048386050
324 .048539430
325 .048692833
326 .048846258
327 .048999706
328 .049153176
329 .049306668
330 .049460183
331 .049613721
332 .049767281
333 .049920863
334 .050074468
335 .050228095
336 .050381745
337 .050535417
338 .050689112
339 .050842829
340 .050996569
341 .051150331
342 .051304116
343 .051457923
344 .051611753
345 .051765605
346 .051919480
347 .052073377
348 .052227297
349 .052381239
350 .052535204
351 .052689191
352 .052843201
353 .052997234
354 .053151289
355 .053305366
356 .053459466
357 .053613589
358 .053767734
359 .053921901
360 .054076092
361 .054230304
362 .054384540
363 .054538798
364 .054693078
365 .054847381
366 .055001707
367 .055156055
368 .055310426
369 .055464819
370 .055619235
371 .055773674
Rev. Rul. 98-55, 1998-47 I.R.B. 5.