IRS Publishes T-Bill Rate Used For Tax On Disc Income.
Rev. Rul. 2007-64; 2007-45 I.R.B. 953
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-24519
- Tax Analysts Electronic Citation2007 TNT 214-7
Rev. Rul. 2007-64
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, 2007 is 4.87 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 share-holder's taxable year (including a 52-53 week accounting period) for the 2007 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. 2006-54, 2006-45 I.R.B. 834, Rev. Rul. 2005-70, 2005-2 C.B. 919, Rev. Rul. 2004-99, 2004-2 C.B. 720, Rev. Rul. 2003-111, 2003-2 C.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 F. Bergkuist of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact David F. Bergkuist at (202) 622-3850 (not a toll-free call).
2007 ANNUAL RATE, 2007 ANNUAL RATE,
COMPOUNDED DAILY COMPOUNDED DAILY
4.87 PERCENT 4.87 PERCENT
DAYS FACTOR DAYS FACTOR
1 .000133425 41 .005485034
2 .000266867 42 .005619191
3 .000400327 43 .005753365
4 .000533805 44 .005887557
5 .000667301 45 .006021767
6 .000800815 46 .006155996
7 .000934347 47 .006290242
8 .001067896 48 .006424506
9 .001201463 49 .006558787
10 .001335048 50 .006693087
11 .001468651 51 .006827405
12 .001602271 52 .006961740
13 .001735910 53 .007096094
14 .001869566 54 .007230465
15 .002003240 55 .007364855
16 .002136932 56 .007499262
17 .002270642 57 .007633687
18 .002404370 58 .007768130
19 .002538115 59 .007902592
20 .002671878 60 .008037071
21 .002805659 61 .008171568
22 .002939458 62 .008306083
23 .003073275 63 .008440616
24 .003207110 64 .008575166
25 .003340963 65 .008709735
26 .003474833 66 .008844322
27 .003608721 67 .008978927
28 .003742627 68 .009113549
29 .003876551 69 .009248190
30 .004010493 70 .009382849
31 .004144453 71 .009517525
32 .004278431 72 .009652220
33 .004412426 73 .009786932
34 .004546440 74 .009921663
35 .004680471 75 .010056411
36 .004814520 76 .010191177
37 .004948587 77 .010325962
38 .005082672 78 .010460764
39 .005216775 79 .010595585
40 .005350895 80 .010730423
[table continued]
2007 ANNUAL RATE, 2007 ANNUAL RATE,
COMPOUNDED DAILY COMPOUNDED DAILY
4.87 PERCENT 4.87 PERCENT
DAYS FACTOR DAYS FACTOR
81 .010865279 121 .016274314
82 .011000154 122 .016409910
83 .011135046 123 .016545524
84 .011269956 124 .016681156
85 .011404885 125 .016816807
86 .011539831 126 .016952475
87 .011674795 127 .017088162
88 .011809778 128 .017223866
89 .011944778 129 .017359589
90 .012079797 130 .017495330
91 .012214833 131 .017631089
92 .012349887 132 .017766866
93 .012484960 133 .017902661
94 .012620050 134 .018038474
95 .012755159 135 .018174306
96 .012890285 136 .018310155
97 .013025430 137 .018446023
98 .013160592 138 .018581909
99 .013295773 139 .018717813
100 .013430972 140 .018853735
101 .013566188 141 .018989675
102 .013701423 142 .019125633
103 .013836676 143 .019261610
104 .013971947 144 .019397605
105 .014107236 145 .019533617
106 .014242542 146 .019669648
107 .014377867 147 .019805697
108 .014513210 148 .019941765
109 .014648571 149 .020077850
110 .014783951 150 .020213953
111 .014919348 151 .020350075
112 .015054763 152 .020486215
113 .015190196 153 .020622373
114 .015325648 154 .020758549
115 .015461117 155 .020894744
116 .015596605 156 .021030956
117 .015732110 157 .021167187
118 .015867634 158 .021303436
119 .016003176 159 .021439703
120 .016138736 160 .021575988
[table continued]
2007 ANNUAL RATE, 2007 ANNUAL RATE,
COMPOUNDED DAILY COMPOUNDED DAILY
4.87 PERCENT 4.87 PERCENT
DAYS FACTOR DAYS FACTOR
161 .021712291 201 .027179367
162 .021848613 202 .027316418
163 .021984953 203 .027453487
164 .022121311 204 .027590575
165 .022257687 205 .027727681
166 .022394081 206 .027864805
167 .022530494 207 .028001948
168 .022666925 208 .028139109
169 .022803374 209 .028276288
170 .022939841 210 .028413485
171 .023076326 211 .028550701
172 .023212830 212 .028687935
173 .023349352 213 .028825187
174 .023485892 214 .028962458
175 .023622450 215 .029099747
176 .023759027 216 .029237054
177 .023895621 217 .029374380
178 .024032234 218 .029511724
179 .024168865 219 .029649086
180 .024305515 220 .029786466
181 .024442182 221 .029923865
182 .024578868 222 .030061283
183 .024715572 223 .030198718
184 .024852295 224 .030336172
185 .024989035 225 .030473644
186 .025125794 226 .030611135
187 .025262571 227 .030748644
188 .025399366 228 .030886171
189 .025536180 229 .031023717
190 .025673012 230 .031161281
191 .025809862 231 .031298863
192 .025946730 232 .031436464
193 .026083617 233 .031574083
194 .026220522 234 .031711720
195 .026357445 235 .031849376
196 .026494386 236 .031987050
197 .026631346 237 .032124743
198 .026768324 238 .032262454
199 .026905320 239 .032400183
200 .027042334 240 .032537931
[table continued]
2007 ANNUAL RATE, 2007 ANNUAL RATE,
COMPOUNDED DAILY COMPOUNDED DAILY
4.87 PERCENT 4.87 PERCENT
DAYS FACTOR DAYS FACTOR
241 .032675697 281 .038201436
242 .032813481 282 .038339958
243 .032951284 283 .038478498
244 .033089105 284 .038617057
245 .033226944 285 .038755634
246 .033364802 286 .038894229
247 .033502679 287 .039032844
248 .033640573 288 .039171476
249 .033778487 289 .039310127
250 .033916418 290 .039448797
251 .034054368 291 .039587485
252 .034192336 292 .039726192
253 .034330323 293 .039864917
254 .034468328 294 .040003660
255 .034606352 295 .040142422
256 .034744394 296 .040281203
257 .034882454 297 .040420002
258 .035020533 298 .040558820
259 .035158630 299 .040697656
260 .035296746 300 .040836511
261 .035434880 301 .040975384
262 .035573033 302 .041114276
263 .035711204 303 .041253186
264 .035849393 304 .041392115
265 .035987601 305 .041531062
266 .036125827 306 .041670028
267 .036264072 307 .041809013
268 .036402335 308 .041948016
269 .036540617 309 .042087037
270 .036678917 310 .042226077
271 .036817235 311 .042365136
272 .036955572 312 .042504213
273 .037093928 313 .042643309
274 .037232302 314 .042782423
275 .037370694 315 .042921556
276 .037509105 316 .043060708
277 .037647534 317 .043199878
278 .037785982 318 .043339066
279 .037924448 319 .043478274
280 .038062933 320 .043617499
[table continued]
2007 ANNUAL RATE, 2007 ANNUAL RATE,
COMPOUNDED DAILY COMPOUNDED DAILY
4.87 PERCENT 4.87 PERCENT
DAYS FACTOR DAYS FACTOR
321 .043756744 361 .049341777
322 .043896006 362 .049481785
323 .044035288 363 .049621812
324 .044174588 364 .049761857
325 .044313907 365 .049901921
326 .044453244 366 .050042004
327 .044592600 367 .050182105
328 .044731974 368 .050322226
329 .044871367 369 .050462365
330 .045010779 370 .050602522
331 .045150209 371 .050742698
332 .045289658
333 .045429125
334 .045568611
335 .045708116
336 .045847639
337 .045987181
338 .046126741
339 .046266320
340 .046405918
341 .046545535
342 .046685170
343 .046824823
344 .046964495
345 .047104186
346 .047243896
347 .047383624
348 .047523371
349 .047663136
350 .047802920
351 .047942723
352 .048082544
353 .048222384
354 .048362243
355 .048502121
356 .048642017
357 .048781931
358 .048921865
359 .049061817
360 .049201787
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2007-24519
- Tax Analysts Electronic Citation2007 TNT 214-7