Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2001-56, 2001-47 I.R.B. 500
2001 BASE PERIOD T-BILL RATE
Published: November 19, 2001
Section 995.--Taxation of DISC Income to Shareholders
2001 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2001, 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 of the 1-year constant maturity Treasury yields, as published by the Board of Governors of the Federal Reserve System, for the 1- 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, 2001, is 4.41 percent.
Pursuant to section 6222 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 2001 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. 2000-52 (2000-48 I.R.B. 516).
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 at (202) 622-3850 (not a toll-free call).
2001 ANNUAL RATE COMPOUNDED DAILY
4.410 PERCENT
DAYS FACTOR
-----------------------------------
1 .000120822
2 .000241658
3 .000362510
4 .000483375
5 .000604256
6 .000725151
7 .000846060
8 .000966984
9 .001087923
10 .001208876
11 .001329844
12 .001450827
13 .001571824
14 .001692836
15 .001813862
16 .001934903
17 .002055959
18 .002177029
19 .002298114
20 .002419214
21 .002540328
22 .002661457
23 .002782601
24 .002903759
25 .003024931
26 .003146119
27 .003267321
28 .003388538
29 .003509769
30 .003631015
31 .003752275
32 .003873551
33 .003994841
34 .004116145
35 .004237464
36 .004358798
37 .004480147
38 .004601510
39 .004722888
40 .004844281
41 .004965688
42 .005087110
43 .005208546
44 .005329997
45 .005451463
46 .005572944
47 .005694439
48 .005815949
49 .005937474
50 .006059013
51 .006180567
52 .006302136
53 .006423719
54 .006545317
55 .006666930
56 .006788557
57 .006910199
58 .007031856
59 .007153528
60 .007275214
61 .007396915
62 .007518630
63 .007640361
64 .007762106
65 .007883866
66 .008005640
67 .008127429
68 .008249233
69 .008371052
70 .008492885
71 .008614733
72 .008736596
73 .008858473
74 .008980366
75 .009102272
76 .009224194
77 .009346131
78 .009468082
79 .009590048
80 .009712028
81 .009834023
82 .009956034
83 .010078058
84 .010200098
85 .010322152
86 .010444221
87 .010566305
88 .010688404
89 .010810517
90 .010932645
91 .011054788
92 .011176945
93 .011299118
94 .011421305
95 .011543507
96 .011665723
97 .011787955
98 .011910201
99 .012032462
100 .012154738
101 .012277028
102 .012399333
103 .012521653
104 .012643988
105 .012766338
106 .012888702
107 .013011081
108 .013133475
109 .013255884
110 .013378307
111 .013500746
112 .013623199
113 .013745667
114 .013868149
115 .013990647
116 .014113159
117 .014235686
118 .014358228
119 .014480785
120 .014603356
121 .014725943
122 .014848544
123 .014971160
124 .015093791
125 .015216436
126 .015339097
127 .015461772
128 .015584462
129 .015707167
130 .015829886
131 .015952621
132 .016075370
133 .016198134
134 .016320913
135 .016443707
136 .016566516
137 .016689340
138 .016812178
139 .016935031
140 .017057899
141 .017180782
142 .017303680
143 .017426592
144 .017549520
145 .017672462
146 .017795419
147 .017918391
148 .018041378
149 .018164380
150 .018287396
151 .018410428
152 .018533474
153 .018656535
154 .018779611
155 .018902702
156 .019025808
157 .019148929
158 .019272064
159 .019395215
160 .019518380
161 .019641560
162 .019764755
163 .019887965
164 .020011190
165 .020134429
166 .020257684
167 .020380954
168 .020504238
169 .020627537
170 .020750851
171 .020874180
172 .020997524
173 .021120883
174 .021244257
175 .021367646
176 .021491049
177 .021614468
178 .021737901
179 .021861350
180 .021984813
181 .022108291
182 .022231784
183 .022355292
184 .022478815
185 .022602353
186 .022725906
187 .022849473
188 .022973056
189 .023096654
190 .023220266
191 .023343894
192 .023467536
193 .023591193
194 .023714865
195 .023838553
196 .023962255
197 .024085972
198 .024209704
199 .024333451
200 .024457213
201 .024580990
202 .024704782
203 .024828588
204 .024952410
205 .025076247
206 .025200099
207 .025323965
208 .025447847
209 .025571743
210 .025695655
211 .025819581
212 .025943523
213 .026067479
214 .026191451
215 .026315437
216 .026439439
217 .026563455
218 .026687486
219 .026811533
220 .026935594
221 .027059670
222 .027183762
223 .027307868
224 .027431989
225 .027556126
226 .027680277
227 .027804443
228 .027928625
229 .028052821
230 .028177032
231 .028301258
232 .028425500
233 .028549756
234 .028674027
235 .028798314
236 .028922615
237 .029046932
238 .029171263
239 .029295610
240 .029419971
241 .029544347
242 .029668739
243 .029793146
244 .029917567
245 .030042004
246 .030166455
247 .030290922
248 .030415404
249 .030539901
250 .030664412
251 .030788939
252 .030913481
253 .031038038
254 .031162610
255 .031287197
256 .031411799
257 .031536416
258 .031661049
259 .031785696
260 .031910358
261 .032035036
262 .032159728
263 .032284436
264 .032409158
265 .032533896
266 .032658648
267 .032783416
268 .032908199
269 .033032997
270 .033157810
271 .033282638
272 .033407481
273 .033532340
274 .033657213
275 .033782102
276 .033907005
277 .034031924
278 .034156857
279 .034281806
280 .034406770
281 .034531749
282 .034656743
283 .034781752
284 .034906777
285 .035031816
286 .035156871
287 .035281940
288 .035407025
289 .035532125
290 .035657240
291 .035782370
292 .035907515
293 .036032676
294 .036157851
295 .036283042
296 .036408247
297 .036533468
298 .036658704
299 .036783955
300 .036909221
301 .037034503
302 .037159799
303 .037285111
304 .037410438
305 .037535780
306 .037661137
307 .037786509
308 .037911896
309 .038037299
310 .038162716
311 .038288149
312 .038413597
313 .038539060
314 .038664539
315 .038790032
316 .038915541
317 .039041064
318 .039166603
319 .039292157
320 .039417727
321 .039543311
322 .039668911
323 .039794526
324 .039920156
325 .040045801
326 .040171461
327 .040297137
328 .040422827
329 .040548533
330 .040674254
331 .040799990
332 .040925742
333 .041051509
334 .041177290
335 .041303087
336 .041428900
337 .041554727
338 .041680570
339 .041806428
340 .041932301
341 .042058189
342 .042184092
343 .042310011
344 .042435945
345 .042561894
346 .042687858
347 .042813838
348 .042939833
349 .043065843
350 .043191868
351 .043317908
352 .043443964
353 .043570035
354 .043696121
355 .043822222
356 .043948339
357 .044074471
358 .044200618
359 .044326780
360 .044452958
361 .044579151
362 .044705359
363 .044831582
364 .044957821
365 .045084074
366 .045210343
367 .045336628
368 .045462927
369 .045589242
370 .045715572
371 .045841918
Rev. Rul. 2001-56, 2001-47 I.R.B. 500