Internal Revenue Service
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smRev. Rul. 2004-99
Rev. Rul. 2004-99, 2004-44 I.R.B. 720
Internal Revenue Service (I.R.S.)
Revenue Ruling
2004 BASE PERIOD T-BILL RATE
Published: November 1, 2004
Section 995.--Taxation of DISC Income to Shareholders
2004 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2004, is published as required by section 995(f) of the Code.
2004 base period T-bill rate. The "base period T-bill rate" for the period ending September 30, 2004, 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, 2004 is 1.60 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 2004 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. 2003-111, 2003-45 I.R.B. 1009, Rev. Rul. 2002-68, 2002-2 C.B. 808, 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).
2004 ANNUAL RATE, COMPOUNDED DAILY
DAYS 1.60 PERCENT FACTOR
------------------------------------
1 .000043716
2 .000087434
3 .000131153
4 .000174875
5 .000218598
6 .000262324
7 .000306051
8 .000349780
9 .000393511
10 .000437244
11 .000480979
12 .000524716
13 .000568455
14 .000612196
15 .000655938
16 .000699683
17 .000743429
18 .000787178
19 .000830928
20 .000874680
21 .000918434
22 .000962190
23 .001005948
24 .001049708
25 .001093470
26 .001137233
27 .001180999
28 .001224766
29 .001268536
30 .001312307
31 .001356080
32 .001399855
33 .001443632
34 .001487411
35 .001531192
36 .001574975
37 .001618760
38 .001662546
39 .001706335
40 .001750125
41 .001793918
42 .001837712
43 .001881508
44 .001925306
45 .001969106
46 .002012908
47 .002056712
48 .002100518
49 .002144325
50 .002188135
51 .002231947
52 .002275760
53 .002319575
54 .002363393
55 .002407212
56 .002451033
57 .002494856
58 .002538681
59 .002582508
60 .002626336
61 .002670167
62 .002714000
63 .002757834
64 .002801670
65 .002845509
66 .002889349
67 .002933191
68 .002977035
69 .003020881
70 .003064729
71 .003108579
72 .003152431
73 .003196284
74 .003240140
75 .003283997
76 .003327857
77 .003371718
78 .003415581
79 .003459447
80 .003503314
81 .003547183
82 .003591054
83 .003634926
84 .003678801
85 .003722678
86 .003766556
87 .003810437
88 .003854319
89 .003898204
90 .003942090
91 .003985978
92 .004029868
93 .004073760
94 .004117654
95 .004161550
96 .004205448
97 .004249347
98 .004293249
99 .004337153
100 .004381058
101 .004424965
102 .004468875
103 .004512786
104 .004556699
105 .004600614
106 .004644531
107 .004688450
108 .004732371
109 .004776293
110 .004820218
111 .004864145
112 .004908073
113 .004952004
114 .004995936
115 .005039870
116 .005083806
117 .005127744
118 .005171684
119 .005215626
120 .005259570
121 .005303516
122 .005347464
123 .005391413
124 .005435365
125 .005479318
126 .005523274
127 .005567231
128 .005611190
129 .005655151
130 .005699114
131 .005743079
132 .005787046
133 .005831015
134 .005874986
135 .005918959
136 .005962933
137 .006006910
138 .006050888
139 .006094869
140 .006138851
141 .006182835
142 .006226821
143 .006270809
144 .006314799
145 .006358791
146 .006402785
147 .006446781
148 .006490778
149 .006534778
150 .006578779
151 .006622783
152 .006666788
153 .006710796
154 .006754805
155 .006798816
156 .006842829
157 .006886844
158 .006930861
159 .006974880
160 .007018900
161 .007062923
162 .007106948
163 .007150974
164 .007195003
165 .007239033
166 .007283065
167 .007327100
168 .007371136
169 .007415174
170 .007459214
171 .007503256
172 .007547300
173 .007591345
174 .007635393
175 .007679443
176 .007723494
177 .007767548
178 .007811603
179 .007855661
180 .007899720
181 .007943781
182 .007987844
183 .008031909
184 .008075976
185 .008120045
186 .008164116
187 .008208189
188 .008252263
189 .008296340
190 .008340418
191 .008384499
192 .008428581
193 .008472666
194 .008516752
195 .008560840
196 .008604930
197 .008649022
198 .008693116
199 .008737212
200 .008781310
201 .008825409
202 .008869511
203 .008913615
204 .008957720
205 .009001828
206 .009045937
207 .009090048
208 .009134162
209 .009178277
210 .009222394
211 .009266513
212 .009310634
213 .009354757
214 .009398881
215 .009443008
216 .009487137
217 .009531267
218 .009575400
219 .009619534
220 .009663671
221 .009707809
222 .009751949
223 .009796091
224 .009840236
225 .009884382
226 .009928529
227 .009972679
228 .010016831
229 .010060985
230 .010105141
231 .010149298
232 .010193458
233 .010237619
234 .010281783
235 .010325948
236 .010370115
237 .010414284
238 .010458455
239 .010502629
240 .010546803
241 .010590980
242 .010635159
243 .010679340
244 .010723523
245 .010767707
246 .010811894
247 .010856082
248 .010900273
249 .010944465
250 .010988660
251 .011032856
252 .011077054
253 .011121254
254 .011165456
255 .011209660
256 .011253866
257 .011298074
258 .011342283
259 .011386495
260 .011430709
261 .011474924
262 .011519142
263 .011563361
264 .011607583
265 .011651806
266 .011696031
267 .011740258
268 .011784487
269 .011828718
270 .011872951
271 .011917186
272 .011961423
273 .012005662
274 .012049902
275 .012094145
276 .012138390
277 .012182636
278 .012226884
279 .012271135
280 .012315387
281 .012359641
282 .012403897
283 .012448156
284 .012492416
285 .012536678
286 .012580941
287 .012625207
288 .012669475
289 .012713745
290 .012758016
291 .012802290
292 .012846565
293 .012890843
294 .012935122
295 .012979404
296 .013023687
297 .013067972
298 .013112259
299 .013156548
300 .013200839
301 .013245132
302 .013289427
303 .013333724
304 .013378023
305 .013422323
306 .013466626
307 .013510930
308 .013555237
309 .013599545
310 .013643856
311 .013688168
312 .013732482
313 .013776798
314 .013821117
315 .013865437
316 .013909759
317 .013954082
318 .013998408
319 .014042736
320 .014087066
321 .014131398
322 .014175731
323 .014220067
324 .014264404
325 .014308744
326 .014353085
327 .014397428
328 .014441774
329 .014486121
330 .014530470
331 .014574821
332 .014619174
333 .014663529
334 .014707886
335 .014752245
336 .014796605
337 .014840968
338 .014885333
339 .014929699
340 .014974068
341 .015018438
342 .015062811
343 .015107185
344 .015151561
345 .015195939
346 .015240320
347 .015284702
348 .015329086
349 .015373472
350 .015417860
351 .015462249
352 .015506641
353 .015551035
354 .015595431
355 .015639828
356 .015684228
357 .015728629
358 .015773033
359 .015817438
360 .015861845
361 .015906255
362 .015950666
363 .015995079
364 .016039494
365 .016083911
366 .016128330
367 .016172751
368 .016217174
369 .016261599
370 .016306025
371 .016350454
Rev. Rul. 2004-99, 2004-44 I.R.B. 720