Part I. Rulings — Internal Revenue Bulletin 2000-48

5.96 PERCENT DAYS FACTOR

26 .004242509 27 .004406042 28 .004569601 29 .004733186 30 .004896799

31 .005060437 32 .005224103 33 .005387795 34 .005551514 35 .005715260

36 .005879032 37 .006042831 38 .006206656 39 .006370509 40 .006534387

41 .006698293 42 .006862225 43 .007026184 44 .007190170 45 .007354182

46 .007518222 47 .007682287 48 .007846380 49 .008010499 50 .008174645

51 .008338818 52 .008503017 53 .008667243 54 .008831496 55 .008995776

56 .009160082 57 .009324416 58 .009488775 59 .009653162 60 .009817576

61 .009982016 62 .010146483 63 .010310977 64 .010475497 65 .010640045

66 .010804619 67 .010969220 68 .011133848 69 .011298502 70 .011463184

71 .011627892 72 .011792627 73 .011957389 74 .012122177 75 .012286993

Section 995.—Taxation of DISC Income to Shareholders

2000 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2000, is published, as required by section 995(f) of the Code.

Rev. Rul. 2000–52

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 DISC-related 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, 2000, is 5.96 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 2000 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 DISC-related 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; Rev. Rul. 95–77, 1995–2 C.B. 122; Rev. Rul. 96–55, 1996–2 C.B. 57; Rev. Rul. 97–49, 1997–2 C.B. 89; Rev. Rul. 98–55, 1998–2 C.B. 665; and Rev. Rul. 99–52, 1999–50 I.R.B. 652.

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 at (202) 622-3850 (not a tollfree call).

2000 ANNUAL RATE COMPOUNDED DAILY

5.96 PERCENT DAYS FACTOR

1 .000162842 2 .000325710 3 .000488604 4 .000651525 5 .000814473

6 .000977447 7 .001140448 8 .001303475 9 .001466529 10 .001629609

11 .001792716 12 .001955849 13 .002119009 14 .002282196 15 .002445409

16 .002608649 17 .002771915 18 .002935208 19 .003098528 20 .003261874

21 .003425247 22 .003588646 23 .003752072 24 .003915524 25 .004079003

November 27, 2000 516 2000–48 I.R.B.

5.96 PERCENT DAYS FACTOR

76 .012451835 77 .012616704 78 .012781600 79 .012946523 80 .013111473

81 .013276450 82 .013441453 83 .013606484 84 .013771541 85 .013936625

86 .014101736 87 .014266874 88 .014432039 89 .014597230 90 .014762449

91 .014927694 92 .015092967 93 .015258266 94 .015423592 95 .015588945

96 .015754325 97 .015919732 98 .016085166 99 .016250627 100 .016416115

101 .016581630 102 .016747171 103 .016912740 104 .017078336 105 .017243958

106 .017409608 107 .017575284 108 .017740988 109 .017906718 110 .018072476

111 .018238260 112 .018404072 113 .018569910 114 .018735776 115 .018901668

116 .019067588 117 .019233534 118 .019399508 119 .019565508 120 .019731536

121 .019897591 122 .020063672 123 .020229781 124 .020395917 125 .020562080

5.96 PERCENT DAYS FACTOR

126 .020728270 127 .020894487 128 .021060731 129 .021227002 130 .021393300

131 .021559625 132 .021725977 133 .021892357 134 .022058763 135 .022225197

136 .022391658 137 .022558146 138 .022724660 139 .022891203 140 .023057772

141 .023224368 142 .023390991 143 .023557642 144 .023724320 145 .023891024

146 .024057756 147 .024224516 148 .024391302 149 .024558115 150 .024724956

151 .024891824 152 .025058719 153 .025225641 154 .025392590 155 .025559567

156 .025726570 157 .025893601 158 .026060659 159 .026227745 160 .026394857

161 .026561997 162 .026729164 163 .026896358 164 .027063579 165 .027230828

166 .027398104 167 .027565407 168 .027732737 169 .027900095 170 .028067479

171 .028234892 172 .028402331 173 .028569797 174 .028737291 175 .028904813

5.96 PERCENT DAYS FACTOR

176 .029072361 177 .029239937 178 .029407540 179 .029575170 180 .029742828

181 .029910512 182 .030078225 183 .030245964 184 .030413731 185 .030581525

186 .030749347 187 .030917195 188 .031085072 189 .031252975 190 .031420906

191 .031588864 192 .031756850 193 .031924862 194 .032092903 195 .032260970

196 .032429065 197 .032597187 198 .032765337 199 .032933514 200 .033101719

201 .033269951 202 .033438210 203 .033606497 204 .033774811 205 .033943152

206 .034111521 207 .034279917 208 .034448341 209 .034616792 210 .034785271

211 .034953777 212 .035122310 213 .035290871 214 .035459459 215 .035628075

216 .035796719 217 .035965389 218 .036134087 219 .036302813 220 .036471566

221 .036640347 222 .036809155 223 .036977991 224 .037146854 225 .037315744

2000–48 I.R.B. 517 November 27, 2000

5.96 PERCENT DAYS FACTOR

226 .037484662 227 .037653608 228 .037822581 229 .037991582 230 .038160610

231 .038329665 232 .038498749 233 .038667859 234 .038836998 235 .039006163

236 .039175357 237 .039344578 238 .039513826 239 .039683102 240 .039852406

241 .040021737 242 .040191096 243 .040360482 244 .040529896 245 .040699337

246 .040868806 247 .041038303 248 .041207827 249 .041377379 250 .041546959

251 .041716566 252 .041886200 253 .042055863 254 .042225553 255 .042395270

256 .042565016 257 .042734788 258 .042904589 259 .043074417 260 .043244273

261 .043414157 262 .043584068 263 .043754007 264 .043923973 265 .044093967

266 .044263989 267 .044434039 268 .044604116 269 .044774221 270 .044944353

271 .045114514 272 .045284702 273 .045454918 274 .045625161 275 .045795432

5.96 PERCENT DAYS FACTOR

276 .045965731 277 .046136058 278 .046306412 279 .046476794 280 .046647204

281 .046817642 282 .046988107 283 .047158600 284 .047329121 285 .047499670

286 .047670246 287 .047840851 288 .048011483 289 .048182142 290 .048352830

291 .048523545 292 .048694289 293 .048865060 294 .049035858 295 .049206685

296 .049377539 297 .049548422 298 .049719332 299 .049890270 300 .050061235

301 .050232229 302 .050403250 303 .050574300 304 .050745377 305 .050916482

306 .051087615 307 .051258775 308 .051429964 309 .051601180 310 .051772425

311 .051943697 312 .052114997 313 .052286325 314 .052457681 315 .052629065

316 .052800477 317 .052971916 318 .053143384 319 .053314879 320 .053486403

321 .053657954 322 .053829533 323 .054001140 324 .054172776 325 .054344439

5.96 PERCENT DAYS FACTOR

326 .054516130 327 .054687849 328 .054859596 329 .055031371 330 .055203174

331 .055375005 332 .055546863 333 .055718750 334 .055890665 335 .056062608

336 .056234579 337 .056406578 338 .056578605 339 .056750659 340 .056922742

341 .057094853 342 .057266992 343 .057439159 344 .057611354 345 .057783577

346 .057955828 347 .058128107 348 .058300415 349 .058472750 350 .058645113

351 .058817505 352 .058989924 353 .059162372 354 .059334847 355 .059507351

356 .059679883 357 .059852443 358 .060025031 359 .060197647 360 .060370291

361 .060542963 362 .060715664 363 .060888392 364 .061061149 365 .061233934

366 .061406747 367 .061579588 368 .061752457 369 .061925354 370 .062098280

371 .062271234

November 27, 2000 518 2000–48 I.R.B.