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

DEC. 4, 2017

Rev. Rul. 2017-23; 2017-49 IRB 546

DATED DEC. 4, 2017
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2017-98290
  • Tax Analysts Electronic Citation
    2017 TNT 231-44
Citations: Rev. Rul. 2017-23; 2017-49 IRB 546

2017 Base Period T-Bill Rate. The “base period T-bill rate” for the period ending September 30, 2017, is published as required by section 995(f) of the Internal Revenue Code.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 995 — Taxation of DISC Income to Shareholders

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a domestic international sales corporation (“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 (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 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, 2017, is 1.01 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2017 base period T-bill rate daily for any number of days in the shareholder's taxable year (including for a 52-53 week accounting period). 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 tax-able year is a leap year.

For the base period T-bill rates for periods ending in prior years, see Rev. Rul. 2017-01, 2017-03 IRB 377; Rev. Rul. 2015-26, 2015-49 IRB 696; Rev. Rul. 2014-33, 2014-52 IRB 957; Rev. Rul. 2013-24, 2013-49 IRB 594; and Rev. Rul. 2012-22, 2012-48 IRB 565.

DRAFTING INFORMATION

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

ANNUAL RATE, COMPOUNDED DAILY

DAYS

1.01 PERCENT FACTOR

1

0.000027671

2

0.000055343

3

0.000083016

4

0.000110690

5

0.000138364

6

0.000166039

7

0.000193715

8

0.000221391

9

0.000249069

10

0.000276747

11

0.000304426

12

0.000332105

13

0.000359786

14

0.000387467

15

0.000415149

16

0.000442832

17

0.000470515

18

0.000498199

19

0.000525884

20

0.000553570

21

0.000581257

22

0.000608944

23

0.000636632

24

0.000664321

25

0.000692011

26

0.000719701

27

0.000747392

28

0.000775084

29

0.000802777

30

0.000830470

31

0.000858164

32

0.000885859

33

0.000913555

34

0.000941252

35

0.000968949

36

0.000996647

37

0.001024346

38

0.001052045

39

0.001079746

40

0.001107447

41

0.001135149

42

0.001162851

43

0.001190555

44

0.001218259

45

0.001245964

46

0.001273670

47

0.001301376

48

0.001329083

49

0.001356791

50

0.001384500

51

0.001412210

52

0.001439920

53

0.001467631

54

0.001495343

55

0.001523055

56

0.001550769

57

0.001578483

58

0.001606198

59

0.001633914

60

0.001661630

61

0.001689347

62

0.001717065

63

0.001744784

64

0.001772503

65

0.001800224

66

0.001827945

67

0.001855667

68

0.001883389

69

0.001911113

70

0.001938837

71

0.001966562

72

0.001994287

73

0.002022014

74

0.002049741

75

0.002077469

76

0.002105197

77

0.002132927

78

0.002160657

79

0.002188388

80

0.002216120

81

0.002243853

82

0.002271586

83

0.002299320

84

0.002327055

85

0.002354790

86

0.002382527

87

0.002410264

88

0.002438002

89

0.002465741

90

0.002493480

91

0.002521220

92

0.002548961

93

0.002576703

94

0.002604446

95

0.002632189

96

0.002659933

97

0.002687678

98

0.002715423

99

0.002743170

100

0.002770917

101

0.002798665

102

0.002826413

103

0.002854163

104

0.002881913

105

0.002909664

106

0.002937416

107

0.002965168

108

0.002992922

109

0.003020676

110

0.003048431

111

0.003076186

112

0.003103942

113

0.003131700

114

0.003159458

115

0.003187216

116

0.003214976

117

0.003242736

118

0.003270497

119

0.003298258

120

0.003326021

121

0.003353784

122

0.003381548

123

0.003409313

124

0.003437079

125

0.003464845

126

0.003492612

127

0.003520380

128

0.003548149

129

0.003575918

130

0.003603688

131

0.003631459

132

0.003659231

133

0.003687003

134

0.003714777

135

0.003742551

136

0.003770325

137

0.003798101

138

0.003825877

139

0.003853654

140

0.003881432

141

0.003909211

142

0.003936990

143

0.003964771

144

0.003992551

145

0.004020333

146

0.004048116

147

0.004075899

148

0.004103683

149

0.004131468

150

0.004159253

151

0.004187040

152

0.004214827

153

0.004242615

154

0.004270403

155

0.004298193

156

0.004325983

157

0.004353774

158

0.004381565

159

0.004409358

160

0.004437151

161

0.004464945

162

0.004492740

163

0.004520535

164

0.004548332

165

0.004576129

166

0.004603927

167

0.004631725

168

0.004659525

169

0.004687325

170

0.004715126

171

0.004742928

172

0.004770730

173

0.004798533

174

0.004826337

175

0.004854142

176

0.004881948

177

0.004909754

178

0.004937561

179

0.004965369

180

0.004993178

181

0.005020987

182

0.005048797

183

0.005076608

184

0.005104420

185

0.005132232

186

0.005160046

187

0.005187860

188

0.005215674

189

0.005243490

190

0.005271306

191

0.005299123

192

0.005326941

193

0.005354760

194

0.005382579

195

0.005410399

196

0.005438220

197

0.005466042

198

0.005493865

199

0.005521688

200

0.005549512

201

0.005577337

202

0.005605162

203

0.005632989

204

0.005660816

205

0.005688643

206

0.005716472

207

0.005744302

208

0.005772132

209

0.005799963

210

0.005827794

211

0.005855627

212

0.005883460

213

0.005911294

214

0.005939129

215

0.005966965

216

0.005994801

217

0.006022638

218

0.006050476

219

0.006078315

220

0.006106154

221

0.006133994

222

0.006161835

223

0.006189677

224

0.006217519

225

0.006245363

226

0.006273207

227

0.006301052

228

0.006328897

229

0.006356744

230

0.006384591

231

0.006412439

232

0.006440287

233

0.006468137

234

0.006495987

235

0.006523838

236

0.006551690

237

0.006579542

238

0.006607395

239

0.006635250

240

0.006663104

241

0.006690960

242

0.006718816

243

0.006746674

244

0.006774531

245

0.006802390

246

0.006830250

247

0.006858110

248

0.006885971

249

0.006913833

250

0.006941695

251

0.006969558

252

0.006997423

253

0.007025287

254

0.007053153

255

0.007081019

256

0.007108887

257

0.007136755

258

0.007164623

259

0.007192493

260

0.007220363

261

0.007248234

262

0.007276106

263

0.007303978

264

0.007331852

265

0.007359726

266

0.007387601

267

0.007415476

268

0.007443353

269

0.007471230

270

0.007499108

271

0.007526987

272

0.007554866

273

0.007582747

274

0.007610628

275

0.007638509

276

0.007666392

277

0.007694275

278

0.007722160

279

0.007750044

280

0.007777930

281

0.007805817

282

0.007833704

283

0.007861592

284

0.007889481

285

0.007917370

286

0.007945260

287

0.007973152

288

0.008001043

289

0.008028936

290

0.008056829

291

0.008084724

292

0.008112619

293

0.008140514

294

0.008168411

295

0.008196308

296

0.008224206

297

0.008252105

298

0.008280004

299

0.008307905

300

0.008335806

301

0.008363708

302

0.008391611

303

0.008419514

304

0.008447418

305

0.008475323

306

0.008503229

307

0.008531135

308

0.008559043

309

0.008586951

310

0.008614860

311

0.008642769

312

0.008670680

313

0.008698591

314

0.008726503

315

0.008754415

316

0.008782329

317

0.008810243

318

0.008838158

319

0.008866074

320

0.008893991

321

0.008921908

322

0.008949826

323

0.008977745

324

0.009005665

325

0.009033585

326

0.009061506

327

0.009089428

328

0.009117351

329

0.009145274

330

0.009173199

331

0.009201124

332

0.009229050

333

0.009256976

334

0.009284904

335

0.009312832

336

0.009340761

337

0.009368690

338

0.009396621

339

0.009424552

340

0.009452484

341

0.009480417

342

0.009508351

343

0.009536285

344

0.009564220

345

0.009592156

346

0.009620093

347

0.009648030

348

0.009675968

349

0.009703907

350

0.009731847

351

0.009759787

352

0.009787729

353

0.009815671

354

0.009843614

355

0.009871557

356

0.009899502

357

0.009927447

358

0.009955393

359

0.009983339

360

0.010011287

361

0.010039235

362

0.010067184

363

0.010095134

364

0.010123085

365

0.010151036

366

0.010178988

367

0.010206941

368

0.010234895

369

0.010262849

370

0.010290804

371

0.010318760
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2017-98290
  • Tax Analysts Electronic Citation
    2017 TNT 231-44
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