IRS Publishes T-Bill Rate Used For Tax On Disc Income.
Rev. Rul. 2008-51; 2008-47 I.R.B. 1171
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2008-24648
- Tax Analysts Electronic Citation2008 TNT 227-11
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, 2008, is 2.48 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 2008 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. 2007-64, 2007-45 I.R.B. 953; Rev. Rul. 2006-54, 2006-2 C.B. 834; Rev. Rul. 2005-70, 2005-2 C.B. 919; Rev. Rul. 2004-99, 2004-2 C.B. 720; Rev. Rul. 2003-2, 2003-1 C.B. 251; 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 Teresa B. Hughes of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Teresa B. Hughes at (202) 622-3850 (not a toll-free call).
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2008 ANNUAL RATE, COMPOUNDED DAILY
2.480 PERCENT
DAYS FACTOR DAYS FACTOR DAYS FACTOR DAYS FACTOR
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1 .000067760 94 .006389510 187 .012751221 280 .019153147
2 .000135524 95 .006457702 188 .012819845 281 .019222205
3 .000203292 96 .006525899 189 .012888473 282 .019291267
4 .000271066 97 .006594101 190 .012957106 283 .019360334
5 .000338844 98 .006662307 191 .013025743 284 .019429405
6 .000406626 99 .006730518 192 .013094386 285 .019498481
7 .000474413 100 .006798734 193 .013163032 286 .019567562
8 .000542205 101 .006866954 194 .013231684 287 .019636647
9 .000610001 102 .006935179 195 .013300340 288 .019705737
10 .000677802 103 .007003408 196 .013369001 289 .019774832
11 .000745608 104 .007071643 197 .013437666 290 .019843932
12 .000813418 105 .007139881 198 .013506336 291 .019913036
13 .000881233 106 .007208125 199 .013575011 292 .019982145
14 .000949052 107 .007276373 200 .013643691 293 .020051258
15 .001016876 108 .007344625 201 .013712375 294 .020120377
16 .001084704 109 .007412883 202 .013781063 295 .020189499
17 .001152537 110 .007481144 203 .013849757 296 .020258627
18 .001220375 111 .007549411 204 .013918455 297 .020327759
19 .001288217 112 .007617682 205 .013987157 298 .020396896
20 .001356064 113 .007685958 206 .014055865 299 .020466038
21 .001423915 114 .007754238 207 .014124577 300 .020535184
22 .001491771 115 .007822523 208 .014193293 301 .020604335
23 .001559632 116 .007890813 209 .014262015 302 .020673491
24 .001627497 117 .007959107 210 .014330741 303 .020742651
25 .001695367 118 .008027406 211 .014399471 304 .020811816
26 .001763242 119 .008095709 212 .014468206 305 .020880986
27 .001831121 120 .008164017 213 .014536946 306 .020950161
28 .001899004 121 .008232330 214 .014605691 307 .021019340
29 .001966893 122 .008300648 215 .014674440 308 .021088524
30 .002034785 123 .008368970 216 .014743194 309 .021157712
31 .002102683 124 .008437296 217 .014811953 310 .021226905
32 .002170585 125 .008505627 218 .014880716 311 .021296103
33 .002238492 126 .008573963 219 .014949484 312 .021365306
34 .002306403 127 .008642304 220 .015018256 313 .021434513
35 .002374319 128 .008710649 221 .015087033 314 .021503725
36 .002442239 129 .008778999 222 .015155815 315 .021572942
37 .002510164 130 .008847353 223 .015224602 316 .021642163
38 .002578094 131 .008915712 224 .015293393 317 .021711389
39 .002646028 132 .008984076 225 .015362189 318 .021780620
40 .002713967 133 .009052444 226 .015430989 319 .021849855
41 .002781910 134 .009120817 227 .015499794 320 .021919095
42 .002849858 135 .009189195 228 .015568604 321 .021988340
43 .002917811 136 .009257577 229 .015637419 322 .022057590
44 .002985768 137 .009325964 230 .015706238 323 .022126844
45 .003053730 138 .009394355 231 .015775062 324 .022196103
46 .003121697 139 .009462752 232 .015843890 325 .022265366
47 .003189668 140 .009531152 233 .015912723 326 .022334634
48 .003257643 141 .009599558 234 .015981561 327 .022403907
49 .003325624 142 .009667968 235 .016050404 328 .022473185
50 .003393609 143 .009736382 236 .016119251 329 .022542467
51 .003461598 144 .009804802 237 .016188103 330 .022611754
52 .003529592 145 .009873226 238 .016256959 331 .022681046
53 .003597591 146 .009941654 239 .016325820 332 .022750343
54 .003665594 147 .010010087 240 .016394686 333 .022819644
55 .003733602 148 .010078525 241 .016463556 334 .022888949
56 .003801615 149 .010146968 242 .016532432 335 .022958260
57 .003869632 150 .010215415 243 .016601311 336 .023027575
58 .003937654 151 .010283867 244 .016670196 337 .023096895
59 .004005680 152 .010352323 245 .016739085 338 .023166220
60 .004073711 153 .010420784 246 .016807979 339 .023235549
61 .004141747 154 .010489250 247 .016876877 340 .023304883
62 .004209787 155 .010557720 248 .016945780 341 .023374222
63 .004277832 156 .010626195 249 .017014688 342 .023443565
64 .004345881 157 .010694674 250 .017083601 343 .023512913
65 .004413935 158 .010763159 251 .017152518 344 .023582266
66 .004481994 159 .010831648 252 .017221440 345 .023651623
67 .004550057 160 .010900141 253 .017290366 346 .023720986
68 .004618125 161 .010968639 254 .017359297 347 .023790352
69 .004686197 162 .011037142 255 .017428233 348 .023859724
70 .004754275 163 .011105649 256 .017497173 349 .023929100
71 .004822356 164 .011174162 257 .017566119 350 .023998481
72 .004890443 165 .011242678 258 .017635068 351 .024067867
73 .004958534 166 .011311200 259 .017704023 352 .024137257
74 .005026629 167 .011379726 260 .017772982 353 .024206653
75 .005094729 168 .011448256 261 .017841946 354 .024276052
76 .005162834 169 .011516792 262 .017910915 355 .024345457
77 .005230943 170 .011585332 263 .017979888 356 .024414866
78 .005299057 171 .011653876 264 .018048866 357 .024484280
79 .005367176 172 .011722425 265 .018117848 358 .024553699
80 .005435299 173 .011790979 266 .018186835 359 .024623122
81 .005503427 174 .011859538 267 .018255827 360 .024692550
82 .005571560 175 .011928101 268 .018324824 361 .024761983
83 .005639697 176 .011996669 269 .018393825 362 .024831420
84 .005707838 177 .012065241 270 .018462831 363 .024900862
85 .005775985 178 .012133818 271 .018531842 364 .024970309
86 .005844136 179 .012202400 272 .018600857 365 .025039760
87 .005912291 180 .012270986 273 .018669877 366 .025109217
88 .005980451 181 .012339577 274 .018738901 367 .025178678
89 .006048616 182 .012408173 275 .018807931 368 .025248143
90 .006116786 183 .012476773 276 .018876965 369 .025317614
91 .006184960 184 .012545378 277 .018946003 370 .025387089
92 .006253138 185 .012613988 278 .019015047 371 .025456569
93 .006321322 186 .012682602 279 .019084095
______________________________________________________________________________
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2008-24648
- Tax Analysts Electronic Citation2008 TNT 227-11