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SECTION 10. PAPERWORK
Internal Revenue Bulletin 1999-24 · 2026-10-03 edition · updated 2026-10-04 · United States
REDUCTION ACT
The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1653. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the col
lection of information displays a valid OMB control number.
The collection of information in this revenue procedure is in section 7 of this revenue procedure. The information is required to ensure that the settlement amount required to be paid under this revenue procedure is accurately computed and timely paid. The likely respondents are businesses that pay deferred benefits.
The estimated total annual reporting burden is 2,000 hours.
The estimated annual burden per respondent will vary from 10 hours to 30 hours, depending on individual circumstances, with an estimated average of 20 hours. The estimated number of respondents is 100.
The estimated annual frequency of responses is one time.
Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and return information are confidential, as required by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this revenue procedure is Robert Testoff of the Office of the Assistant Chief Counsel (Income Tax & Accounting). For further information regarding this settlement initiative contact Sharon Russell (Vacation Pay Issue Specialist) at (216) 328-2824 (not a toll-free call).
June 14, 1999 44 1999–24 I.R.B.
E XHIBIT I
COMPUTATION OF EXCESS ACCELERATED DEDUCTION
| Taxable Year Covered By Settlement |
Accelerated Deduction (Column A) |
Accelerated Deduction From Prior Year Paid During Current Year (Column B) [Col A Prior Yr] |
Excess Accelerated Deduction (Column C) [Col A - Col B] |
50-Percent Disallowance of Excess Accelerated Deduction (Column D) [50% Col C] |
|---|---|---|---|---|
| 1992 | $ 12,000,000 | $ 12,000,000* | $ 6,000,000 | |
| 1993 | $ 15,000,000 | $ 12,000,000 | $ 3,000,000 | $ 1,500,000 |
| 1994 | $ 13,000,000 | $ 15,000,000 | ($ 2,000,000) | ($ 1,000,000) |
| 1995 | $ 16,000,000 | $ 13,000,000 | $ 3,000,000 | $ 1,500,000 |
| 1996 | $ 16,000,000 | $ 16,000,000 | $ 0 | $ 0 |
| 1997 | $ 18,000,000 | $ 16,000,000 | $ 2,000,000 | $ 1,000,000 |
| Total | $ 18,000,000 | $ 9,000,000 |
- The excess accelerated deduction for the first taxable year covered by the settlement is equal to the accelerated deduction for the taxable year.
1999–24 I.R.B. 45 June 14, 1999
EXHIBIT II
COMPUTATION OF § 481(a) ADJUSTMENT
Computation of § 481(a) Adjustment Time-value-of-money Settlement (Option Two)
- The excess accelerated deduction for the first taxable year covered by the settlement is computed without regard to the special rule in section 3.02.
Computation of Reduced § 481(a) Adjustment
Alternative-timing Settlement (Option One)
§ 481(a) Adjustment for Time-Value-of-Money Settlement (Exhibit II, Col. C) $18,000,000 50% Disallowance of Excess Accelerated Deduction (Exhibit I, Col. D) $ 9,000,000 § 481(a) Adjustment for Alternative-timing Settlement $ 9,000,000
June 14, 1999 46 1999–24 I.R.B.
EXHIBIT III
COMPUTATION OF SPECIFIED AMOUNT
| Quarterly Interest Rates | Taxable Year |
Applicable Period |
Average Under/ Payment Rate (AR /AR ) U O S Rates / # Rates |
Tax Rate (T) |
After-Tax Time-Value Rate (R) AR * [1–T] |
Number of Days In Applicable Period (N) |
Excess Accelerated Deductions (EAD) |
Hypothetical Under/ Payment (HU/ EAD * TR |
Time-Value-of- Money Benefit (Detriment) For Taxable Year (TVMB) HU * {[1+(R/365)]N–1} |
||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Under Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
Over Payment Rate |
| 1/1/93 – 3/31/93 | 7% | 6% | 1992 | 3/15/93 - 3/15/99 | 8.28% | 34% | 5.46% | 2191 | $12,000,000 | $4,080,000 | $1,582,254 |
| 4/1/93 – 6/30/93 | 7% | 6% | |||||||||
| 7/1/93 – 9/30/93 | 7% | 6% | |||||||||
| 10/1/93 – 12/31/93 | 7% | 6% | |||||||||
| 1/1/94 – 3/31/94 | 7% | 6% | 1993 | 3/15/94 - 3/15/99 | 8.52% | 35% | 5.54% | 1826 | $3,000,000 | $1,050,000 | $ 335,306 |
| 4/1/94 - 6/30/94 | 7% | 6% | |||||||||
| 7/1/94 – 9/30/94 | 8% | 7% | |||||||||
| 10/1/94 – 12/31/94 | 9% | 8% | |||||||||
| 1/1/95 – 3/31/95 | 9% | 8% | 1994 | 3/15/95 - 3/15/99 | 8.71% | 35% | 5.66% | 1461 | ($2,000,000) | ($ 700,000) | ($ 155,430) |
| 4/1/95 – 6/30/95 | 10% | 9% | |||||||||
| 7/1/95 – 9/30/95 | 9% | 8% | |||||||||
| 10/1/95 – 12/31/95 | 9% | 8% | |||||||||
| 1/1/96 – 3/31/96 | 9% | 8% | 1995 | 3/15/96 - 3/15/99 | 8.54% | 35% | 5.55% | 1095 | $3,000,000 | $1,050,000 | $ 190,206 |
| 4/1/96 – 6/30/96 | 8% | 7% | |||||||||
| 7/1/96 – 9/30/96 | 9% | 8% | |||||||||
| 10/1/96 – 12/31/96 | 9% | 8% | |||||||||
| 1/1/97 – 3/31/97 | 9% | 8% | 1996 | 3/15/97 - 3/15/99 | 8.44% | 35% | 5.49% | 730 | $ 0 | $ 0 | $ 0 |
| 4/1/97 – 6/30/97 | 9% | 8% | |||||||||
| 7/1/97 – 9/30/97 | 9% | 8% | |||||||||
| 10/1/97 – 12/31/97 | 9% | 8% | |||||||||
| 1/1/98 – 3/31/98 | 9% | 8% | 1997 | 3/15/98 - 3/15/99 | 8.00% | 35% | 5.20% | 365 | $2,000,000 | $ 700,000 | $ 37,360 |
| 4/1/98 – 6/30/98 | 8% | 7% | |||||||||
| 7/1/98 – 9/30/98 | 8% | 7% |
| 10/1/98 – 12/31/98 | 8% | 7% | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1/1/99 – 3/31/99 | 7% | 6% | ||||||||||||
| S TVMBs | $ 1,989,696 | |||||||||||||
| Specified Amount 50% ofS TVMBs |
$ 994,848 |
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