Rev. Rul. 99-52
1999-50 I.R.B. 652.

                        1999 BASE PERIOD T-BILL RATE

                        Published: December 13, 1999

Section 995.--Taxation of DISC Income to Shareholders

   Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a DISC shall pay interest each taxable year in an a amount equal to the product of the shareholder's DISC-related an a deferred tax liability for the year and the "base period T-bill a 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 with 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, 1999, is 4.80 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 1999 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; Rev. Rul. 97-49,,, 1997-2 C.B. 89; and Rev. Rul. 98-54, 1998-56 I.R.B. 5.

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).

  1999 ANNUAL RATE COMPOUNDED DAILY
      DAYS       4.80 PERCENT FACTOR
              1           .000131507
              2           .000263031
              3           .000394572
              4           .000526131
              5           .000657707
              6           .000789301
              7           .000920911
              8           .001052539
              9           .001184184
             10           .001315847
             11           .001447527
             12           .001579224
             13           .001710939
             14           .001842670
             15           .001974420
             16           .002106186
             17           .002237970
             18           .002369771
             19           .002501590
             20           .002633425
             21           .002765279
             22           .002897149
             23           .003029037
             24           .003160942
             25           .003292865
             26           .003424805
             27           .003556762
             28           .003688736
             29           .003820728
             30           .003952738
             31           .004084764
             32           .004216808
             33           .004348870
             34           .004480948
             35           .004613045
             36           .004745158
             37           .004877289
             38           .005009437
             39           .005141603
             40           .005273786
             41           .005405986
             42           .005538204
             43           .005670439
             44           .005802692
             45           .005934962
             46           .006067249
             47           .006199554
             48           .006331876
             49           .006464215
             50           .006596572
             51           .006728947
             52           .006861338
             53           .006993748
             54           .007126174
             55           .007258618
             56           .007391080
             57           .007523558
             58           .007656055
             59           .007788568
             60           .007921099
             61           .008053648
             62           .008186214
             63           .008318797
             64           .008451398
             65           .008584016
             66           .008716652
             67           .008849305
             68           .008981976
             69           .009114664
             70           .009247369
             71           .009380092
             72           .009512833
             73           .009645591
             74           .009778366
             75           .009911159
             76           .010043969
             77           .010176797
             78           .010309642
             79           .010442504
             80           .010575384
             81           .010708282
             82           .010841197
             83           .010974130
             84           .011107080
             85           .011240047
             86           .011373032
             87           .011506035
             88           .011639055
             89           .011772092
             90           .011905147
             91           .012038220
             92           .012171309
             93           .012304417
             94           .012437542
             95           .012570684
             96           .012703844
             97           .012837022
             98           .012970217
             99           .013103429
            100           .013236659
            101           .013369907
            102           .013503172
            103           .013636455
            104           .013769755
            105           .013903072
            106           .014036408
            107           .014169760
            108           .014303131
            109           .014436518
            110           .014569924
            111           .014703347
            112           .014836787
            113           .014970245
            114           .015103721
            115           .015237214
            116           .015370724
            117           .015504253
            118           .015637798
            119           .015771362
            120           .015904943
            121           .016038541
            122           .016172157
            123           .016305791
            124           .016439442
            125           .016573111
            126           .016706797
            127           .016840501
            128           .016974222
            129           .017107961
            130           .017241718
            131           .017375492
            132           .017509284
            133           .017643094
            134           .017776921
            135           .017910765
            136           .018044628
            137           .018178507
            138           .018312405
            139           .018446320
            140           .018580253
            141           .018714203
            142           .018848171
            143           .018982156
            144           .019116159
            145           .019250180
            146           .019384219
            147           .019518275
            148           .019652348
            149           .019786439
            150           .019920548
            151           .020054675
            152           .020188819
            153           .020322981
            154           .020457160
            155           .020591357
            156           .020725572
            157           .020859805
            158           .020994055
            159           .021128322
            160           .021262608
            161           .021396911
            162           .021531231
            163           .021665570
            164           .021799926
            165           .021934299
            166           .022068691
            167           .022203100
            168           .022337527
            169           .022471971
            170           .022606433
            171           .022740913
            172           .022875410
            173           .023009925
            174           .023144458
            175           .023279009
            176           .023413577
            177           .023548163
            178           .023682766
            179           .023817388
            180           .023952027
            181           .024086683
            182           .024221358
            183           .024356050
            184           .024490760
            185           .024625487
            186           .024760233
            187           .024894996
            188           .025029776
            189           .025164575
            190           .025299391
            191           .025434225
            192           .025569076
            193           .025703946
            194           .025838833
            195           .025973738
            196           .026108660
            197           .026243601
            198           .026378559
            199           .026513534
            200           .026648528
            201           .026783539
            202           .026918568
            203           .027053615
            204           .027188680
            205           .027323762
            206           .027458862
            207           .027593980
            208           .027729116
            209           .027864269
            210           .027999440
            211           .028134629
            212           .028269836
            213           .028405061
            214           .028540303
            215           .028675563
            216           .028810841
            217           .028946137
            218           .029081450
            219           .029216781
            220           .029352130
            221           .029487497
            222           .029622882
            223           .029758284
            224           .029893705
            225           .030029143
            226           .030164599
            227           .030300072
            228           .030435564
            229           .030571073
            230           .030706600
            231           .030842145
            232           .030977708
            233           .031113289
            234           .031248887
            235           .031384503
            236           .031520138
            237           .031655790
            238           .031791459
            239           .031927147
            240           .032062852
            241           .032198576
            242           .032334317
            243           .032470076
            244           .032605853
            245           .032741648
            246           .032877460
            247           .033013291
            248           .033149139
            249           .033285005
            250           .033420889
            251           .033556791
            252           .033692711
            253           .033828649
            254           .033964604
            255           .034100578
            256           .034236569
            257           .034372578
            258           .034508605
            259           .034644650
            260           .034780713
            261           .034916794
            262           .035052892
            263           .035189009
            264           .035325143
            265           .035461296
            266           .035597466
            267           .035733654
            268           .035869860
            269           .036006084
            270           .036142326
            271           .036278586
            272           .036414864
            273           .036551159
            274           .036687473
            275           .036823804
            276           .036960154
            277           .037096521
            278           .037232906
            279           .037369310
            280           .037505731
            281           .037642170
            282           .037778627
            283           .037915102
            284           .038051595
            285           .038188106
            286           .038324635
            287           .038461182
            288           .038597746
            289           .038734329
            290           .038870930
            291           .039007548
            292           .039144185
            293           .039280840
            294           .039417512
            295           .039554203
            296           .039690911
            297           .039827638
            298           .039964382
            299           .040101144
            300           .040237925
            301           .040374723
            302           .040511540
            303           .040648374
            304           .040785226
            305           .040922097
            306           .041058985
            307           .041195892
            308           .041332816
            309           .041469758
            310           .041606719
            311           .041743697
            312           .041880694
            313           .042017708
            314           .042154741
            315           .042291791
            316           .042428860
            317           .042565946
            318           .042703051
            319           .042840173
            320           .042977314
            321           .043114473
            322           .043251649
            323           .043388844
            324           .043526057
            325           .043663288
            326           .043800536
            327           .043937803
            328           .044075088
            329           .044212391
            330           .044349712
            331           .044487052
            332           .044624409
            333           .044761784
            334           .044899177
            335           .045036589
            336           .045174018
            337           .045311466
            338           .045448931
            339           .045586415
            340           .045723917
            341           .045861437
            342           .045998975
            343           .046136531
            344           .046274105
            345           .046411697
            346           .046549307
            347           .046686936
            348           .046824582
            349           .046962247
            350           .047099930
            351           .047237630
            352           .047375349
            353           .047513086
            354           .047650841
            355           .047788615
            356           .047926406
            357           .048064216
            358           .048202043
            359           .048339889
            360           .048477753
            361           .048615635
            362           .048753535
            363           .048891453
            364           .049029390
            365           .049167344
            366           .049305317
            367           .049443308
            368           .049581317
            369           .049719344
            370           .049857389
            371           .049995453

Rev. Rul. 99-52, 1999-50 I.R.B. 652.