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IRS Publishes T-Bill Rate Used for Tax on DISC Income

NOV. 22, 2021

Rev. Rul. 2021-22; 2021-47 IRB 726

DATED NOV. 22, 2021
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2021-43777
  • Tax Analysts Electronic Citation
    2021 TNTF 224-28
    2021 TNTG 224-35
    2021 TPR 48-11
Citations: Rev. Rul. 2021-22; 2021-47 IRB 726

Section 995. — Taxation of DISC Income to Shareholders

Part I

2021 Base Period T-Bill Rate. The “base period T-bill rate” for the period ending September 30, 2021, is published as required by section 995(f) of the Internal Revenue Code.

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a domestic international sales corporation (“DISC”) shall pay interest for each taxable year in an amount equal to the product of the “shareholder's DISC-related deferred tax liability” for the year (as defined in section 995(f)(2)) 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, 2021, is 0.08 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2021 base period T-bill rate daily for any number of days in the shareholder's taxable year (including for a 52-53 week taxable year). 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 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 is being determined is a short taxable year, if the shareholder uses a 52-53 week taxable year, or if the shareholder's taxable year is a leap year.

For the base period T-bill rates for periods ending in prior years, see Rev. Rul. 2020-25, 2020-48 I.R.B. 1109; Rev. Rul. 2019-27, 2019-51 I.R.B. 1378; Rev. Rul. 2018-31, 2018-50 I.R.B. 848; Rev. Rul. 2017-23, 2017-49 I.R.B. 546; and Rev. Rul. 2017-01, 2017-03 I.R.B. 377.

DRAFTING INFORMATION

The principal author of this revenue ruling is Kathleen C. Arsenault of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Ms. Arsenault at (202) 317-3800 (not a toll-free number). 

ANNUAL RATE (0.08%), COMPOUNDED DAILY

DAYS

FACTOR

1

0.000002192

2

0.000004384

3

0.000006575

4

0.000008767

5

0.000010959

6

0.000013151

7

0.000015343

8

0.000017534

9

0.000019726

10

0.000021918

11

0.000024110

12

0.000026302

13

0.000028494

14

0.000030685

15

0.000032877

16

0.000035069

17

0.000037261

18

0.000039453

19

0.000041645

20

0.000043837

21

0.000046028

22

0.000048220

23

0.000050412

24

0.000052604

25

0.000054796

26

0.000056988

27

0.000059180

28

0.000061372

29

0.000063564

30

0.000065756

31

0.000067947

32

0.000070139

33

0.000072331

34

0.000074523

35

0.000076715

36

0.000078907

37

0.000081099

38

0.000083291

39

0.000085483

40

0.000087675

41

0.000089867

42

0.000092059

43

0.000094251

44

0.000096443

45

0.000098635

46

0.000100827

47

0.000103019

48

0.000105211

49

0.000107403

50

0.000109595

51

0.000111787

52

0.000113979

53

0.000116171

54

0.000118363

55

0.000120555

56

0.000122747

57

0.000124939

58

0.000127131

59

0.000129323

60

0.000131515

61

0.000133707

62

0.000135899

63

0.000138092

64

0.000140284

65

0.000142476

66

0.000144668

67

0.000146860

68

0.000149052

69

0.000151244

70

0.000153436

71

0.000155628

72

0.000157820

73

0.000160013

74

0.000162205

75

0.000164397

76

0.000166589

77

0.000168781

78

0.000170973

79

0.000173165

80

0.000175358

81

0.000177550

82

0.000179742

83

0.000181934

84

0.000184126

85

0.000186319

86

0.000188511

87

0.000190703

88

0.000192895

89

0.000195087

90

0.000197280

91

0.000199472

92

0.000201664

93

0.000203856

94

0.000206048

95

0.000208241

96

0.000210433

97

0.000212625

98

0.000214817

99

0.000217010

100

0.000219202

101

0.000221394

102

0.000223586

103

0.000225779

104

0.000227971

105

0.000230163

106

0.000232356

107

0.000234548

108

0.000236740

109

0.000238932

110

0.000241125

111

0.000243317

112

0.000245509

113

0.000247702

114

0.000249894

115

0.000252086

116

0.000254279

117

0.000256471

118

0.000258663

119

0.000260856

120

0.000263048

121

0.000265240

122

0.000267433

123

0.000269625

124

0.000271817

125

0.000274010

126

0.000276202

127

0.000278395

128

0.000280587

129

0.000282779

130

0.000284972

131

0.000287164

132

0.000289357

133

0.000291549

134

0.000293741

135

0.000295934

136

0.000298126

137

0.000300319

138

0.000302511

139

0.000304704

140

0.000306896

141

0.000309089

142

0.000311281

143

0.000313473

144

0.000315666

145

0.000317858

146

0.000320051

147

0.000322243

148

0.000324436

149

0.000326628

150

0.000328821

151

0.000331013

152

0.000333206

153

0.000335398

154

0.000337591

155

0.000339783

156

0.000341976

157

0.000344168

158

0.000346361

159

0.000348553

160

0.000350746

161

0.000352939

162

0.000355131

163

0.000357324

164

0.000359516

165

0.000361709

166

0.000363901

167

0.000366094

168

0.000368287

169

0.000370479

170

0.000372672

171

0.000374864

172

0.000377057

173

0.000379250

174

0.000381442

175

0.000383635

176

0.000385827

177

0.000388020

178

0.000390213

179

0.000392405

180

0.000394598

181

0.000396791

182

0.000398983

183

0.000401176

184

0.000403369

185

0.000405561

186

0.000407754

187

0.000409947

188

0.000412139

189

0.000414332

190

0.000416525

191

0.000418717

192

0.000420910

193

0.000423103

194

0.000425295

195

0.000427488

196

0.000429681

197

0.000431874

198

0.000434066

199

0.000436259

200

0.000438452

201

0.000440645

202

0.000442837

203

0.000445030

204

0.000447223

205

0.000449416

206

0.000451608

207

0.000453801

208

0.000455994

209

0.000458187

210

0.000460379

211

0.000462572

212

0.000464765

213

0.000466958

214

0.000469151

215

0.000471343

216

0.000473536

217

0.000475729

218

0.000477922

219

0.000480115

220

0.000482308

221

0.000484500

222

0.000486693

223

0.000488886

224

0.000491079

225

0.000493272

226

0.000495465

227

0.000497657

228

0.000499850

229

0.000502043

230

0.000504236

231

0.000506429

232

0.000508622

233

0.000510815

234

0.000513008

235

0.000515201

236

0.000517394

237

0.000519586

238

0.000521779

239

0.000523972

240

0.000526165

241

0.000528358

242

0.000530551

243

0.000532744

244

0.000534937

245

0.000537130

246

0.000539323

247

0.000541516

248

0.000543709

249

0.000545902

250

0.000548095

251

0.000550288

252

0.000552481

253

0.000554674

254

0.000556867

255

0.000559060

256

0.000561253

257

0.000563446

258

0.000565639

259

0.000567832

260

0.000570025

261

0.000572218

262

0.000574411

263

0.000576604

264

0.000578797

265

0.000580990

266

0.000583183

267

0.000585376

268

0.000587569

269

0.000589762

270

0.000591955

271

0.000594148

272

0.000596341

273

0.000598535

274

0.000600728

275

0.000602921

276

0.000605114

277

0.000607307

278

0.000609500

279

0.000611693

280

0.000613886

281

0.000616079

282

0.000618273

283

0.000620466

284

0.000622659

285

0.000624852

286

0.000627045

287

0.000629238

288

0.000631431

289

0.000633625

290

0.000635818

291

0.000638011

292

0.000640204

293

0.000642397

294

0.000644591

295

0.000646784

296

0.000648977

297

0.000651170

298

0.000653363

299

0.000655557

300

0.000657750

301

0.000659943

302

0.000662136

303

0.000664329

304

0.000666523

305

0.000668716

306

0.000670909

307

0.000673102

308

0.000675296

309

0.000677489

310

0.000679682

311

0.000681875

312

0.000684069

313

0.000686262

314

0.000688455

315

0.000690649

316

0.000692842

317

0.000695035

318

0.000697228

319

0.000699422

320

0.000701615

321

0.000703808

322

0.000706002

323

0.000708195

324

0.000710388

325

0.000712582

326

0.000714775

327

0.000716968

328

0.000719162

329

0.000721355

330

0.000723549

331

0.000725742

332

0.000727935

333

0.000730129

334

0.000732322

335

0.000734515

336

0.000736709

337

0.000738902

338

0.000741096

339

0.000743289

340

0.000745482

341

0.000747676

342

0.000749869

343

0.000752063

344

0.000754256

345

0.000756450

346

0.000758643

347

0.000760836

348

0.000763030

349

0.000765223

350

0.000767417

351

0.000769610

352

0.000771804

353

0.000773997

354

0.000776191

355

0.000778384

356

0.000780578

357

0.000782771

358

0.000784965

359

0.000787158

360

0.000789352

361

0.000791545

362

0.000793739

363

0.000795932

364

0.000798126

365

0.000800319

366

0.000802513

367

0.000804706

368

0.000806900

369

0.000809093

370

0.000811287

371

0.000813480
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2021-43777
  • Tax Analysts Electronic Citation
    2021 TNTF 224-28
    2021 TNTG 224-35
    2021 TPR 48-11
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