Internal Revenue Service
Revenue Ruling
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smRev. Rul. 2002-68, 2002-45 I.R.B. 808
Internal Revenue Service (I.R.S.)
Revenue Ruling
2002 BASE PERIOD T-BILL RATE
Published: November 12, 2002
Section 995.--Taxation of DISC Income to Shareholders
2002 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2002, 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, 2002 is 2.18 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 2002 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. 2001-56, 2001-2 C.B. 500, and Rev. Rul. 2000-52, 2000-2 C.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).
ANNUAL RATE, COMPOUNDED DAILY
DAYS 2.180 PERCENT FACTOR
--------------------------
1 .000059726
2 .000119456
3 .000179189
4 .000238926
5 .000298666
6 .000358410
7 .000418157
8 .000477908
9 .000537663
10 .000597421
11 .000657183
12 .000716948
13 .000776717
14 .000836489
15 .000896265
16 .000956045
17 .001015828
18 .001075614
19 .001135405
20 .001195199
21 .001254996
22 .001314797
23 .001374602
24 .001434410
25 .001494221
26 .001554037
27 .001613855
28 .001673678
29 .001733504
30 .001793333
31 .001853167
32 .001913003
33 .001972844
34 .002032687
35 .002092535
36 .002152386
37 .002212240
38 .002272099
39 .002331960
40 .002391826
41 .002451694
42 .002511567
43 .002571443
44 .002631323
45 .002691206
46 .002751093
47 .002810983
48 .002870877
49 .002930774
50 .002990675
51 .003050580
52 .003110488
53 .003170400
54 .003230315
55 .003290234
56 .003350157
57 .003410083
58 .003470013
59 .003529946
60 .003589883
61 .003649823
62 .003709767
63 .003769715
64 .003829666
65 .003889621
66 .003949579
67 .004009541
68 .004069507
69 .004129476
70 .004189448
71 .004249425
72 .004309404
73 .004369388
74 .004429375
75 .004489365
76 .004549360
77 .004609357
78 .004669359
79 .004729364
80 .004789372
81 .004849384
82 .004909400
83 .004969419
84 .005029442
85 .005089468
86 .005149498
87 .005209532
88 .005269569
89 .005329610
90 .005389654
91 .005449702
92 .005509754
93 .005569809
94 .005629867
95 .005689930
96 .005749996
97 .005810065
98 .005870138
99 .005930215
100 .005990295
101 .006050379
102 .006110466
103 .006170557
104 .006230652
105 .006290750
106 .006350852
107 .006410957
108 .006471066
109 .006531178
110 .006591294
111 .006651414
112 .006711537
113 .006771664
114 .006831795
115 .006891929
116 .006952066
117 .007012208
118 .007072353
119 .007132501
120 .007192653
121 .007252809
122 .007312968
123 .007373131
124 .007433297
125 .007493467
126 .007553641
127 .007613818
128 .007673999
129 .007734183
130 .007794371
131 .007854562
132 .007914758
133 .007974956
134 .008035159
135 .008095365
136 .008155574
137 .008215787
138 .008276004
139 .008336224
140 .008396448
141 .008456676
142 .008516907
143 .008577142
144 .008637380
145 .008697622
146 .008757867
147 .008818116
148 .008878369
149 .008938625
150 .008998885
151 .009059149
152 .009119416
153 .009179687
154 .009239961
155 .009300239
156 .009360520
157 .009420805
158 .009481094
159 .009541386
160 .009601682
161 .009661982
162 .009722285
163 .009782592
164 .009842902
165 .009903216
166 .009963533
167 .010023854
168 .010084179
169 .010144507
170 .010204839
171 .010265175
172 .010325514
173 .010385857
174 .010446203
175 .010506553
176 .010566906
177 .010627264
178 .010687624
179 .010747989
180 .010808357
181 .010868728
182 .010929103
183 .010989482
184 .011049865
185 .011110251
186 .011170640
187 .011231033
188 .011291430
189 .011351831
190 .011412235
191 .011472642
192 .011533054
193 .011593468
194 .011653887
195 .011714309
196 .011774735
197 .011835164
198 .011895597
199 .011956033
200 .012016473
201 .012076917
202 .012137364
203 .012197815
204 .012258270
205 .012318728
206 .012379190
207 .012439655
208 .012500124
209 .012560597
210 .012621073
211 .012681553
212 .012742036
213 .012802523
214 .012863014
215 .012923508
216 .012984006
217 .013044508
218 .013105013
219 .013165522
220 .013226034
221 .013286550
222 .013347070
223 .013407593
224 .013468120
225 .013528650
226 .013589184
227 .013649722
228 .013710263
229 .013770808
230 .013831356
231 .013891908
232 .013952464
233 .014013024
234 .014073587
235 .014134153
236 .014194723
237 .014255297
238 .014315875
239 .014376456
240 .014437040
241 .014497629
242 .014558221
243 .014618816
244 .014679415
245 .014740018
246 .014800624
247 .014861234
248 .014921848
249 .014982465
250 .015043086
251 .015103711
252 .015164339
253 .015224970
254 .015285606
255 .015346245
256 .015406887
257 .015467534
258 .015528183
259 .015588837
260 .015649494
261 .015710155
262 .015770819
263 .015831487
264 .015892159
265 .015952834
266 .016013513
267 .016074195
268 .016134881
269 .016195571
270 .016256264
271 .016316961
272 .016377662
273 .016438366
274 .016499074
275 .016559785
276 .016620500
277 .016681219
278 .016741941
279 .016802667
280 .016863397
281 .016924130
282 .016984867
283 .017045607
284 .017106351
285 .017167099
286 .017227850
287 .017288605
288 .017349364
289 .017410126
290 .017470892
291 .017531662
292 .017592435
293 .017653212
294 .017713992
295 .017774776
296 .017835564
297 .017896355
298 .017957150
299 .018017948
300 .018078750
301 .018139556
302 .018200366
303 .018261179
304 .018321995
305 .018382816
306 .018443640
307 .018504467
308 .018565299
309 .018626133
310 .018686972
311 .018747814
312 .018808660
313 .018869509
314 .018930362
315 .018991219
316 .019052079
317 .019112943
318 .019173811
319 .019234682
320 .019295557
321 .019356435
322 .019417317
323 .019478203
324 .019539092
325 .019599985
326 .019660882
327 .019721782
328 .019782686
329 .019843594
330 .019904505
331 .019965420
332 .020026338
333 .020087261
334 .020148186
335 .020209116
336 .020270049
337 .020330985
338 .020391926
339 .020452870
340 .020513817
341 .020574769
342 .020635723
343 .020696682
344 .020757644
345 .020818610
346 .020879579
347 .020940552
348 .021001529
349 .021062510
350 .021123494
351 .021184481
352 .021245472
353 .021306467
354 .021367466
355 .021428468
356 .021489474
357 .021550484
358 .021611497
359 .021672514
360 .021733534
361 .021794558
362 .021855586
363 .021916617
364 .021977652
365 .022038691
366 .022099733
367 .022160779
368 .022221829
369 .022282882
370 .022343939
371 .022404999
Rev. Rul. 2002-68, 2002-45 I.R.B. 808