Part I. Rulings — Internal Revenue Bulletin 2012-48

Section 995.—Taxation of DISC Income to Shareholders

2012 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2012, is published, as required by section 995(f) of the Code.

Rev. Rul. 2012–22

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 pe

riod 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, 2012, is 0.16 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 2012 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. 2011–30, 2011–2 C.B. 826; Rev. Rul. 2010–28, 2010–2 C.B. 804; Rev. Rul. 2009–36, 2009–2 C.B. 650; Rev. Rul. 2008–51, 2008–2 C.B. 1171; and Rev. Rul. 2007–64, 2007–2 C.B. 953.

DRAFTING INFORMATION

The principal author of this revenue ruling is Teresa Burridge 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).

DAYS

0.160 PERCENT FACTOR

1 .000004372 2 .000008743 3 .000013115 4 .000017486 5 .000021858

6 .000026230 7 .000030601 8 .000034973 9 .000039345 10 .000043717

11 .000048088 12 .000052460 13 .000056832 14 .000061204 15 .000065576

16 .000069948 17 .000074320 18 .000078691 19 .000083063 20 .000087435

21 .000091807 22 .000096179 23 .000100551 24 .000104923

2012–48 I.R.B. 565 November 26, 2012

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

25 .000109295

26 .000113667 27 .000118039 28 .000122412 29 .000126784 30 .000131156

31 .000135528 32 .000139900 33 .000144272 34 .000148645 35 .000153017

36 .000157389 37 .000161761 38 .000166134 39 .000170506 40 .000174878

41 .000179251 42 .000183623 43 .000187995 44 .000192368 45 .000196740

46 .000201113 47 .000205485 48 .000209858 49 .000214230 50 .000218603

51 .000222975 52 .000227348 53 .000231720 54 .000236093 55 .000240466

56 .000244838 57 .000249211 58 .000253584 59 .000257956 60 .000262329

61 .000266702 62 .000271074 63 .000275447 64 .000279820 65 .000284193

66 .000288566 67 .000292938 68 .000297311 69 .000301684 70 .000306057

71 .000310430 72 .000314803 73 .000319176

November 26, 2012 566 2012–48 I.R.B.

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

74 .000323549 75 .000327922

76 .000332295 77 .000336668 78 .000341041 79 .000345414 80 .000349787

81 .000354160 82 .000358533 83 .000362907 84 .000367280 85 .000371653

86 .000376026 87 .000380399 88 .000384773 89 .000389146 90 .000393519

91 .000397892 92 .000402266 93 .000406639 94 .000411013 95 .000415386

96 .000419759 97 .000424133 98 .000428506 99 .000432880 100 .000437253

101 .000441627 102 .000446000 103 .000450374 104 .000454747 105 .000459121

106 .000463494 107 .000467868 108 .000472242 109 .000476615 110 .000480989

111 .000485363 112 .000489736 113 .000494110 114 .000498484 115 .000502858

116 .000507231 117 .000511605 118 .000515979 119 .000520353 120 .000524727

121 .000529101 122 .000533474

2012–48 I.R.B. 567 November 26, 2012

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

123 .000537848 124 .000542222 125 .000546596

126 .000550970 127 .000555344 128 .000559718 129 .000564092 130 .000568466

131 .000572840 132 .000577214 133 .000581589 134 .000585963 135 .000590337

136 .000594711 137 .000599085 138 .000603459 139 .000607834 140 .000612208

141 .000616582 142 .000620956 143 .000625331 144 .000629705 145 .000634079

146 .000638454 147 .000642828 148 .000647202 149 .000651577 150 .000655951

151 .000660326 152 .000664700 153 .000669075 154 .000673449 155 .000677824

156 .000682198 157 .000686573 158 .000690947 159 .000695322 160 .000699697

161 .000704071 162 .000708446 163 .000712821 164 .000717195 165 .000721570

166 .000725945 167 .000730320 168 .000734694 169 .000739069 170 .000743444

171 .000747819

November 26, 2012 568 2012–48 I.R.B.

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

172 .000752194 173 .000756569 174 .000760943 175 .000765318

176 .000769693 177 .000774068 178 .000778443 179 .000782818 180 .000787193

181 .000791568 182 .000795943 183 .000800318 184 .000804693 185 .000809069

186 .000813444 187 .000817819 188 .000822194 189 .000826569 190 .000830944

191 .000835320 192 .000839695 193 .000844070 194 .000848445 195 .000852821

196 .000857196 197 .000861571 198 .000865947 199 .000870322 200 .000874697

201 .000879073 202 .000883448 203 .000887824 204 .000892199 205 .000896575

206 .000900950 207 .000905326 208 .000909701 209 .000914077 210 .000918452

211 .000922828 212 .000927204 213 .000931579 214 .000935955 215 .000940330

216 .000944706 217 .000949082 218 .000953458 219 .000957833 220 .000962209

2012–48 I.R.B. 569 November 26, 2012

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

221 .000966585 222 .000970961 223 .000975337 224 .000979712 225 .000984088

226 .000988464 227 .000992840 228 .000997216 229 .001001592 230 .001005968

231 .001010344 232 .001014720 233 .001019096 234 .001023472 235 .001027848

236 .001032224 237 .001036600 238 .001040976 239 .001045352 240 .001049729

241 .001054105 242 .001058481 243 .001062857 244 .001067233 245 .001071610

246 .001075986 247 .001080362 248 .001084739 249 .001089115 250 .001093491

251 .001097868 252 .001102244 253 .001106620 254 .001110997 255 .001115373

256 .001119750 257 .001124126 258 .001128503 259 .001132879 260 .001137256

261 .001141632 262 .001146009 263 .001150385 264 .001154762 265 .001159139

266 .001163515 267 .001167892 268 .001172269 269 .001176645 270 .001181022

November 26, 2012 570 2012–48 I.R.B.

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

271 .001185399 272 .001189776 273 .001194152 274 .001198529 275 .001202906

276 .001207283 277 .001211660 278 .001216037 279 .001220414 280 .001224790

281 .001229167 282 .001233544 283 .001237921 284 .001242298 285 .001246675

286 .001251052 287 .001255429 288 .001259807 289 .001264184 290 .001268561

291 .001272938 292 .001277315 293 .001281692 294 .001286069 295 .001290447

296 .001294824 297 .001299201 298 .001303578 299 .001307956 300 .001312333

301 .001316710 302 .001321088 303 .001325465 304 .001329842 305 .001334220

306 .001338597 307 .001342975 308 .001347352 309 .001351729 310 .001356107

311 .001360484 312 .001364862 313 .001369240 314 .001373617 315 .001377995

316 .001382372 317 .001386750 318 .001391128 319 .001395505 320 .001399883

2012–48 I.R.B. 571 November 26, 2012

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

321 .001404261 322 .001408638 323 .001413016 324 .001417394 325 .001421772

326 .001426149 327 .001430527 328 .001434905 329 .001439283 330 .001443661

331 .001448039 332 .001452417 333 .001456795 334 .001461173 335 .001465551

336 .001469929 337 .001474307 338 .001478685 339 .001483063 340 .001487441

341 .001491819 342 .001496197 343 .001500575 344 .001504953 345 .001509331

346 .001513710 347 .001518088 348 .001522466 349 .001526844 350 .001531222

351 .001535601 352 .001539979 353 .001544357 354 .001548736 355 .001553114

356 .001557492 357 .001561871 358 .001566249 359 .001570628 360 .001575006

361 .001579385 362 .001583763 363 .001588142 364 .001592520 365 .001596899

366 .001601277 367 .001605656 368 .001610034 369 .001614413 370 .001618792

November 26, 2012 572 2012–48 I.R.B.

ANNUAL RATE, COMPOUNDED DAILY

DAYS

0.160 PERCENT FACTOR

371 .001623170

2012–48 I.R.B. 573 November 26, 2012