IRS Corrects Table in T-Bill Rate Guidance for DISC Income

Rev. Rul. 2014-27, 2014-47 I.R.B. 832 provided the "base period T-bill rate" under section 995(f) of the Internal Revenue Code for the period ending September 30, 2014, and provided a table of base period T-bill rate factors to reflect daily compounding of the rate for any number of days in a DISC shareholder's taxable year. Due to a transcription error, Rev. Rul. 2014-27 overstated the factors (though Rev. Rul. 2014-27 correctly stated the base period T-bill rate itself) and cited section 6222 (rather than section 6622) as the statute that requires daily compounding of interest. This ruling provides a corrected table of factors and changes the statutory reference to section 6622.

EFFECT ON OTHER REVENUE RULING(S)

Rev. Rul. 2014-27 is modified.

DRAFTING INFORMATION

The principal author of this revenue ruling is Anand Desai of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Mr. Desai at (202) 317-6939 (not a toll-free number).

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