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

NOV. 21, 2022

Rev. Rul. 2022-21; 2022-47 IRB 468

DATED NOV. 21, 2022
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2022-37132
  • Tax Analysts Electronic Citation
    2022 TNTI 224-26
    2022 TNTF 224-25
    2022 TNTG 224-21
Citations: Rev. Rul. 2022-21; 2022-47 IRB 468

Part I

Section 995. — Taxation of DISC Income to Shareholders

2022 Base Period T-Bill Rate. The “base period T-bill rate” for the period ending September 30, 2022, 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, 2022, is 1.71 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2022 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. 2021-22, 2021-47 I.R.B. 726; 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 Jacob H. Larson of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Mr. Larson at (202) 317-3800 (not a toll-free number).

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS

FACTOR

1

0.000046849

2

0.000093701

3

0.000140555

4

0.000187410

5

0.000234269

6

0.000281129

7

0.000327991

8

0.000374856

9

0.000421723

10

0.000468592

11

0.000515463

12

0.000562337

13

0.000609212

14

0.000656090

15

0.000702970

16

0.000749852

17

0.000796737

18

0.000843624

19

0.000890512

20

0.000937403

21

0.000984297

22

0.001031192

23

0.001078090

24

0.001124990

25

0.001171892

26

0.001218796

27

0.001265702

28

0.001312611

29

0.001359522

30

0.001406435

31

0.001453350

32

0.001500267

33

0.001547187

34

0.001594109

35

0.001641033

36

0.001687959

37

0.001734887

38

0.001781818

39

0.001828751

40

0.001875686

41

0.001922623

42

0.001969562

43

0.002016504

44

0.002063448

45

0.002110394

46

0.002157342

47

0.002204292

48

0.002251245

49

0.002298199

50

0.002345156

51

0.002392116

52

0.002439077

53

0.002486041

54

0.002533006

55

0.002579974

56

0.002626945

57

0.002673917

58

0.002720892

59

0.002767868

60

0.002814847

61

0.002861829

62

0.002908812

63

0.002955797

64

0.003002785

65

0.003049775

66

0.003096767

67

0.003143762

68

0.003190758

69

0.003237757

70

0.003284758

71

0.003331761

72

0.003378767

73

0.003425774

74

0.003472784

75

0.003519796

76

0.003566811

77

0.003613827

78

0.003660846

79

0.003707866

80

0.003754889

81

0.003801915

82

0.003848942

83

0.003895972

84

0.003943004

85

0.003990038

86

0.004037074

87

0.004084112

88

0.004131153

89

0.004178196

90

0.004225241

91

0.004272288

92

0.004319338

93

0.004366389

94

0.004413443

95

0.004460499

96

0.004507558

97

0.004554618

98

0.004601681

99

0.004648746

100

0.004695813

101

0.004742882

102

0.004789954

103

0.004837027

104

0.004884103

105

0.004931181

106

0.004978262

107

0.005025344

108

0.005072429

109

0.005119516

110

0.005166605

111

0.005213696

112

0.005260790

113

0.005307886

114

0.005354984

115

0.005402084

116

0.005449186

117

0.005496291

118

0.005543398

119

0.005590507

120

0.005637618

121

0.005684731

122

0.005731847

123

0.005778965

124

0.005826085

125

0.005873207

126

0.005920332

127

0.005967458

128

0.006014587

129

0.006061718

130

0.006108852

131

0.006155987

132

0.006203125

133

0.006250265

134

0.006297407

135

0.006344551

136

0.006391698

137

0.006438847

138

0.006485998

139

0.006533151

140

0.006580306

141

0.006627464

142

0.006674624

143

0.006721786

144

0.006768950

145

0.006816116

146

0.006863285

147

0.006910456

148

0.006957629

149

0.007004804

150

0.007051982

151

0.007099161

152

0.007146343

153

0.007193527

154

0.007240714

155

0.007287902

156

0.007335093

157

0.007382286

158

0.007429481

159

0.007476678

160

0.007523878

161

0.007571080

162

0.007618284

163

0.007665490

164

0.007712699

165

0.007759909

166

0.007807122

167

0.007854337

168

0.007901554

169

0.007948774

170

0.007995996

171

0.008043220

172

0.008090446

173

0.008137674

174

0.008184905

175

0.008232137

176

0.008279372

177

0.008326610

178

0.008373849

179

0.008421091

180

0.008468334

181

0.008515580

182

0.008562829

183

0.008610079

184

0.008657332

185

0.008704587

186

0.008751844

187

0.008799103

188

0.008846365

189

0.008893629

190

0.008940894

191

0.008988163

192

0.009035433

193

0.009082706

194

0.009129981

195

0.009177258

196

0.009224537

197

0.009271818

198

0.009319102

199

0.009366388

200

0.009413676

201

0.009460966

202

0.009508259

203

0.009555554

204

0.009602851

205

0.009650150

206

0.009697451

207

0.009744755

208

0.009792061

209

0.009839369

210

0.009886679

211

0.009933992

212

0.009981306

213

0.010028623

214

0.010075942

215

0.010123264

216

0.010170587

217

0.010217913

218

0.010265241

219

0.010312571

220

0.010359904

221

0.010407239

222

0.010454575

223

0.010501915

224

0.010549256

225

0.010596599

226

0.010643945

227

0.010691293

228

0.010738643

229

0.010785996

230

0.010833350

231

0.010880707

232

0.010928066

233

0.010975428

234

0.011022791

235

0.011070157

236

0.011117525

237

0.011164895

238

0.011212267

239

0.011259642

240

0.011307019

241

0.011354398

242

0.011401779

243

0.011449163

244

0.011496548

245

0.011543936

246

0.011591326

247

0.011638719

248

0.011686113

249

0.011733510

250

0.011780909

251

0.011828310

252

0.011875714

253

0.011923119

254

0.011970527

255

0.012017937

256

0.012065350

257

0.012112764

258

0.012160181

259

0.012207600

260

0.012255021

261

0.012302445

262

0.012349871

263

0.012397298

264

0.012444729

265

0.012492161

266

0.012539596

267

0.012587032

268

0.012634471

269

0.012681913

270

0.012729356

271

0.012776802

272

0.012824250

273

0.012871700

274

0.012919152

275

0.012966607

276

0.013014063

277

0.013061522

278

0.013108984

279

0.013156447

280

0.013203913

281

0.013251381

282

0.013298851

283

0.013346323

284

0.013393798

285

0.013441275

286

0.013488754

287

0.013536235

288

0.013583718

289

0.013631204

290

0.013678692

291

0.013726182

292

0.013773674

293

0.013821169

294

0.013868666

295

0.013916165

296

0.013963666

297

0.014011170

298

0.014058675

299

0.014106183

300

0.014153694

301

0.014201206

302

0.014248721

303

0.014296238

304

0.014343757

305

0.014391278

306

0.014438801

307

0.014486327

308

0.014533855

309

0.014581385

310

0.014628918

311

0.014676453

312

0.014723989

313

0.014771529

314

0.014819070

315

0.014866613

316

0.014914159

317

0.014961707

318

0.015009258

319

0.015056810

320

0.015104365

321

0.015151922

322

0.015199481

323

0.015247042

324

0.015294606

325

0.015342172

326

0.015389740

327

0.015437310

328

0.015484883

329

0.015532457

330

0.015580034

331

0.015627614

332

0.015675195

333

0.015722779

334

0.015770365

335

0.015817953

336

0.015865543

337

0.015913136

338

0.015960731

339

0.016008328

340

0.016055927

341

0.016103529

342

0.016151132

343

0.016198738

344

0.016246347

345

0.016293957

346

0.016341570

347

0.016389185

348

0.016436802

349

0.016484421

350

0.016532043

351

0.016579667

352

0.016627293

353

0.016674921

354

0.016722551

355

0.016770184

356

0.016817819

357

0.016865456

358

0.016913096

359

0.016960738

360

0.017008381

361

0.017056028

362

0.017103676

363

0.017151327

364

0.017198979

365

0.017246634

366

0.017294292

367

0.017341951

368

0.017389613

369

0.017437277

370

0.017484943

371

0.017532612
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Tax Analysts Document Number
    2022-37132
  • Tax Analysts Electronic Citation
    2022 TNTI 224-26
    2022 TNTF 224-25
    2022 TNTG 224-21
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