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

38 .005736727 39 .005888137 40 .006039570

41 .006191025 42 .006342504 43 .006494005 44 .006645529 45 .006797076

46 .006948646 47 .007100239 48 .007251854 49 .007403492 50 .007555153

51 .007706837 52 .007858544 53 .008010273 54 .008162026 55 .008313801

56 .008465599 57 .008617420 58 .008769263 59 .008921130 60 .009073020

61 .009224932 62 .009376867 63 .009528825 64 .009680806 65 .009832810

66 .009984837 67 .010136886 68 .010288959 69 .010441054 70 .010593173

71 .010745314 72 .010897478 73 .011049665 74 .011201875 75 .011354108

76 .011506364 77 .011658642 78 .011810944 79 .011963268 80 .012115616

81 .012267986 82 .012420380 83 .012572796 84 .012725235 85 .012877697

86 .013030183 87 .013182691 88 .013335222 89 .013487776 90 .013640353

Section 995.—Taxation of DISC Income to Shareholders

1996 base period T-bill rate. The ‘‘base period T-bill rate’’ for the period ending September 30, 1996, is published, as required by section 995(f)(4) of the Code.

Rev. Rul. 96–55

Section 995(f)(l) 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 DISCrelated 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 investment yield of United States Treasury bills with maturities of 52 weeks which were auctioned during the one-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, 1996, is 5.51 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 shareholder’s taxable year (including a 52–53 week accounting period) for the 1996 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 DISCrelated 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. 86–132, 1986–2 C.B. 137; Rev. Rul. 87–129, 1987–2 C.B. 196; Rev. Rul. 88–94, 1988–2 C.B. 301; Rev. Rul. 89–116, 1989–2 C.B. 197; Rev. Rul.

90–96, 1990–2 C.B. 188; Rev. Rul. 91–59, 1991–2 C.B. 347; Rev. Rul. 92–98, 1992–2 C.B. 201; Rev. Rul. 93–77, 1993–2 C.B. 253; Rev. Rul. 94–68, 1994–2 C.B. 177: and Rev. Rul. 95–77, 1995–2 C.B. 122.

DRAFTING INFORMATION

The principal author of this revenue ruling is David Bergkuist of the Office of the Associate Chief Counsel (International). For further information about this revenue ruling, contact Mr. Bergkuist on (202) 622–3860 (not a toll-free call

1996 ANNUAL RATE, COMPOUNDED DAILY

1 .000150546 2 .000301116 3 .000451707 4 .000602322 5 .000752959

6 .000903619 7 .001054301 8 .001205006 9 .001355734 10 .001506485

11 .001657258 12 .001808054 13 .001958873 14 .002109714 15 .002260578

16 .002411465 17 .002562374 18 .002713306 19 .002864261 20 .003015239

21 .003166239 22 .003317263 23 .003468308 24 .003619377 25 .003770468

26 .003921582 27 .004072719 28 .004223879 29 .004375061 30 .004526266

31 .004677494 32 .004828745 33 .004980018 34 .005131314 35 .005282633

36 .005433975 37 .005585340

4

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

91 .013792953 92 .013945576 93 .014098222 94 .014250890 95 .014403582

96 .014556297 97 .014709035 98 .014861796 99 .015014580 100 .015167387

101 .015320216 102 .015473069 103 .015625945 104 .015778844 105 .015931766

106 .016084711 107 .016237679 108 .016390670 109 .016543684 110 .016696721

111 .016849781 112 .017002864 113 .017155970 114 .017309099 115 .017462252

116 .017615427 117 .017768625 118 .017921847 119 .018075091 120 .018228359

121 .018381650 122 .018534963 123 .018688300 124 .018841660 125 .018995043

126 .019148449 127 .019301878 128 .019455331 129 .019608806 130 .019762304

131 .019915826 132 .020069371 133 .020222939 134 .020376529 135 .020530144

136 .020683781 137 .020837441 138 .020991124 139 .021144831 140 .021298561

141 .021452314 142 .021606090 143 .021759889 144 .021913711 145 .022067557

146 .022221425 147 .022375317 148 .022529232 149 .022683170 150 .022837132

151 .022991116 152 .023145124 153 .023299155 154 .023453209 155 .023607286

156 .023761386 157 .023915510 158 .024069657 159 .024223827 160 .024378020

161 .024532237 162 .024686476 163 .024840739 164 .024995025 165 .025149335

166 .025303667 167 .025458023 168 .025612402 169 .025766804 170 .025921230

171 .026075679 172 .026230151 173 .026384646 174 .026539165 175 .026693707

176 .026848272 177 .027002860 178 .027157472 179 .027312107 180 .027466765

181 .027621446 182 .027776151 183 .027930879 184 .028085630 185 .028240405

186 .028395203 187 .028550024 188 .028704869 189 .028859737 190 .029014628

191 .029169542 192 .029324480 193 .029479441 194 .029634426 195 .029789433

196 .029944465 197 .030099519 198 .030254597 199 .030409698 200 .030564823

5

201 .030719970 202 .030875142 203 .031030336 204 .031185554 205 .031340796

206 .031496060 207 .031651348 208 .031806660 209 .031961995 210 .032117353

211 .032272734 212 .032428139 213 .032583568 214 .032739020 215 .032894495

216 .033049993 217 .033205515 218 .033361061 219 .033516630 220 .033672222

221 .033827838 222 .033983477 223 .034139139 224 .034294825 225 .034450535

226 .034606268 227 .034762024 228 .034917804 229 .035073607 230 .035229433

231 .035385284 232 .035541157 233 .035697054 234 .035852975 235 .036008919

236 .036164886 237 .036320877 238 .036476891 239 .036632929 240 .036788991

241 .036945076 242 .037101184 243 .037257316 244 .037413471 245 .037569650

246 .037725853 247 .037882079 248 .038038328 249 .038194601 250 .038350898

251 .038507218 252 .038663561 253 .038819928 254 .038976319 255 .039132733

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

DAYS

5.51 PERCENT FACTOR

256 .039289171 257 .039445632 258 .039602117 259 .039758625 260 .039915157

261 .040071713 262 .040228292 263 .040384895 264 .040541521 265 .040698171

266 .040854844 267 .041011541 268 .041168262 269 .041325006 270 .041481774

271 .041638565 272 .041795380 273 .041952219 274 .042109081 275 .042265967

276 .042422876 277 .042579809 278 .042736766 279 .042893746 280 .043050750

281 .043207778 282 .043364829 283 .043521904 284 .043679002 285 .043836125

286 .043993270 287 .044150440 288 .044307633 289 .044464850 290 .044622090

291 .044779354 292 .044936642 293 .045093954 294 .045251289 295 .045408648

296 .045566030 297 .045723437 298 .045880867 299 .046038320 300 .046195798

301 .046353299 302 .046510823 303 .046668372

304 .046825944 305 .046983540

306 .047141160 307 .047298803 308 .047456470 309 .047614161 310 .047771876

311 .047929614 312 .048087376 313 .048245162 314 .048402971 315 .048560805

316 .048718662 317 .048876543 318 .049034447 319 .049192376 320 .049350328

321 .049508304 322 .049666304 323 .049824327 324 .049982375 325 .050140446

326 .050298541 327 .050456659 328 .050614802 329 .050772968 330 .050931158

331 .051089372 332 .051247610 333 .051405872 334 .051564157 335 .051722466

336 .051880799 337 .052039156 338 .052197537 339 .052355942 340 .052514370

341 .052672822 342 .052831299 343 .052989799 344 .053148322 345 .053306870

346 .053465442 347 .053624037 348 .053782657 349 .053941300 350 .054099967

6

351 .054258658 352 .054417373 353 .054576112 354 .054734874 355 .054893661

356 .055052471 357 .055211306 358 .055370164 359 .055529046 360 .055687953

361 .055846883 362 .056005837 363 .056164815 364 .056323816 365 .056482842

366 .056641892 367 .056800966 368 .056960063 369 .057119185 370 .057278330

371 .057437500

Section 6044.—Returns Regarding Payments of Patronage Dividends

26 CFR 1.6044–5: Statements to recipients of patronage dividends.

Are payors, required to report payments on Form 1099, permitted to use certain logos and identifying slogans on substitute Forms 1099? See Notice 96–62, page 8.

Section 6049.—Returns Regarding Payments of Interest

26 CFR 1.6049–6: Statements to recipients of interest payments and holders of obligations as to which there is attributed original issue.

Are payors, required to report payments on Form 1099, permitted to use certain logos and identifying slogans on substitute Forms 1099? See Notice 96–62, page 8.

Section 6050N.—Returns Regarding Payments of Royalties

26 CFR 1.6050N–1: Statements to recipients of royalties.

Are payors, required to report payments on Form 1099, permitted to use certain logos and identifying slogans on substitute Forms 1099? See Notice 96–62, page 8.