Part I. Rulings — Internal Revenue Bulletin 2009-47

Section 995.—Taxation of DISC Income to Shareholders

2009 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2009, is published as required by section 995(f) of the Code.

Rev. Rul. 2009–36

Section 995(f)(1) 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 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, 2009, is 0.630 percent.

Pursuant to section 6222 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 2009 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. 2008–51, 2008–2 C.B. 1171; Rev. Rul. 2007–64, 2007–2 C.B. 953; Rev. Rul. 2006–54, 2006–2 C.B. 834; Rev. Rul. 2005–70, 2005–2 C.B. 919; Rev. Rul. 2004–99, 2004–2 C.B. 720; Rev. Rul. 2003–2, 2003–1 C.B. 251; Rev. Rul. 2002–68, 2002–2 C.B. 808; and Rev. Rul. 2001–56, 2001–2 C.B. 500.

DRAFTING INFORMATION

The principal author of this revenue ruling is Teresa B. Hughes of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Teresa B. Hughes at (202) 622–3850 (not a toll-free call).

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

1 .000017260 2 .000034521 3 .000051782 4 .000069043 5 .000086304

6 .000103566 7 .000120828 8 .000138091 9 .000155353 10 .000172616

11 .000189879 12 .000207143 13 .000224407 14 .000241671 15 .000258935

16 .000276200 17 .000293465 18 .000310731 19 .000327996 20 .000345262

21 .000362528 22 .000379795 23 .000397062 24 .000414329 25 .000431596

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

26 .000448864 27 .000466132 28 .000483400 29 .000500669 30 .000517938

31 .000535207 32 .000552477 33 .000569746 34 .000587016 35 .000604287

36 .000621558 37 .000638829 38 .000656100 39 .000673371 40 .000690643

41 .000707916 42 .000725188 43 .000742461 44 .000759734 45 .000777007

46 .000794281 47 .000811555 48 .000828829 49 .000846104 50 .000863379

51 .000880654 52 .000897929 53 .000915205 54 .000932481 55 .000949758

56 .000967034 57 .000984311 58 .001001589 59 .001018866 60 .001036144

61 .001053422 62 .001070701 63 .001087979 64 .001105258 65 .001122538

2009–47 I.R.B. 650 November 23, 2009

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

146 .002523156 147 .002540460 148 .002557764 149 .002575068 150 .002592373

151 .002609678 152 .002626983 153 .002644289 154 .002661595 155 .002678901

156 .002696208 157 .002713515 158 .002730822 159 .002748129 160 .002765437

161 .002782745 162 .002800053 163 .002817362 164 .002834671 165 .002851980

166 .002869289 167 .002886599 168 .002903909 169 .002921220 170 .002938530

171 .002955841 172 .002973153 173 .002990464 174 .003007776 175 .003025088

176 .003042401 177 .003059714 178 .003077027 179 .003094340 180 .003111654

181 .003128968 182 .003146282 183 .003163597 184 .003180911 185 .003198227

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

66 .001139817 67 .001157097 68 .001174378 69 .001191658 70 .001208939

71 .001226220 72 .001243502 73 .001260783 74 .001278065 75 .001295348

76 .001312630 77 .001329913 78 .001347196 79 .001364480 80 .001381764

81 .001399048 82 .001416332 83 .001433617 84 .001450902 85 .001468187

86 .001485473 87 .001502759 88 .001520045 89 .001537332 90 .001554618

91 .001571906 92 .001589193 93 .001606481 94 .001623769 95 .001641057

96 .001658346 97 .001675634 98 .001692924 99 .001710213 100 .001727503

101 .001744793 102 .001762083 103 .001779374 104 .001796665 105 .001813956

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

106 .001831248 107 .001848540 108 .001865832 109 .001883124 110 .001900417

111 .001917710 112 .001935004 113 .001952297 114 .001969591 115 .001986886

116 .002004180 117 .002021475 118 .002038770 119 .002056066 120 .002073361

121 .002090658 122 .002107954 123 .002125251 124 .002142547 125 .002159845

126 .002177142 127 .002194440 128 .002211738 129 .002229037 130 .002246335

131 .002263635 132 .002280934 133 .002298234 134 .002315533 135 .002332834

136 .002350134 137 .002367435 138 .002384736 139 .002402038 140 .002419339

141 .002436641 142 .002453944 143 .002471246 144 .002488549 145 .002505853

November 23, 2009 651 2009–47 I.R.B.

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

266 .004601749 267 .004619089 268 .004636429 269 .004653769 270 .004671110

271 .004688450 272 .004705792 273 .004723133 274 .004740475 275 .004757817

276 .004775159 277 .004792502 278 .004809845 279 .004827188 280 .004844532

281 .004861876 282 .004879220 283 .004896565 284 .004913909 285 .004931254

286 .004948600 287 .004965946 288 .004983292 289 .005000638 290 .005017984

291 .005035331 292 .005052678 293 .005070026 294 .005087374 295 .005104722

296 .005122070 297 .005139419 298 .005156768 299 .005174117 300 .005191467

301 .005208817 302 .005226167 303 .005243517 304 .005260868 305 .005278219

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

186 .003215542 187 .003232858 188 .003250174 189 .003267490 190 .003284807

191 .003302124 192 .003319441 193 .003336759 194 .003354077 195 .003371395

196 .003388713 197 .003406032 198 .003423351 199 .003440670 200 .003457990

201 .003475310 202 .003492630 203 .003509951 204 .003527272 205 .003544593

206 .003561914 207 .003579236 208 .003596558 209 .003613881 210 .003631203

211 .003648526 212 .003665849 213 .003683173 214 .003700497 215 .003717821

216 .003735145 217 .003752470 218 .003769795 219 .003787120 220 .003804446

221 .003821772 222 .003839098 223 .003856425 224 .003873752 225 .003891079

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

226 .003908406 227 .003925734 228 .003943062 229 .003960390 230 .003977719

231 .003995048 232 .004012377 233 .004029707 234 .004047036 235 .004064367

236 .004081697 237 .004099028 238 .004116359 239 .004133690 240 .004151022

241 .004168354 242 .004185686 243 .004203018 244 .004220351 245 .004237684

246 .004255018 247 .004272351 248 .004289685 249 .004307020 250 .004324354

251 .004341689 252 .004359025 253 .004376360 254 .004393696 255 .004411032

256 .004428368 257 .004445705 258 .004463042 259 .004480379 260 .004497717

261 .004515055 262 .004532393 263 .004549732 264 .004567070 265 .004584410

2009–47 I.R.B. 652 November 23, 2009

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

306 .005295570 307 .005312922 308 .005330274 309 .005347626 310 .005364979

311 .005382332 312 .005399685 313 .005417039 314 .005434392 315 .005451746

316 .005469101 317 .005486455 318 .005503810 319 .005521166 320 .005538521

321 .005555877 322 .005573233 323 .005590590 324 .005607946 325 .005625304

326 .005642661 327 .005660019 328 .005677377 329 .005694735 330 .005712093

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

331 .005729452 332 .005746811 333 .005764171 334 .005781531 335 .005798891

336 .005816251 337 .005833612 338 .005850973 339 .005868334 340 .005885696

341 .005903057 342 .005920420 343 .005937782 344 .005955145 345 .005972508

346 .005989871 347 .006007235 348 .006024599 349 .006041963 350 .006059328

351 .006076693 352 .006094058 353 .006111423 354 .006128789 355 .006146155

2009 ANNUAL RATE, COMPOUNDED DAILY

0.630 PERCENT

DAYS FACTOR

356 .006163521 357 .006180888 358 .006198255 359 .006215622 360 .006232990

361 .006250358 362 .006267726 363 .006285094 364 .006302463 365 .006319832

366 .006337201 367 .006354571 368 .006371941 369 .006389311 370 .006406682

371 .006424053

November 23, 2009 653 2009–47 I.R.B.