Rev. Rul. 2020-25
Internal Revenue Bulletin 2020-48 · 2026-10-03 edition · updated 2026-10-04 · United States
Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a domestic international sales corporation (“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 (as defined in section 995(f)(2)) 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, 2020, is 0.73 percent.
Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2020 base period T-bill rate daily for any number of days in the shareholder’s taxable year (including for a 52-53 week taxable year). 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 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 is being determined is a short taxable year, if the shareholder uses a 52-53 week taxable year, or if the shareholder’s taxable year is a leap year.
For the base period T-bill rates for periods ending in prior years, see Rev. Rul. 2019-27, 2019-51 I.R.B. 1378; Rev. Rul. 2018-31, 2018-50 I.R.B. 848; Rev. Rul. 2017-23, 2017-49 I.R.B. 546; Rev. Rul. 2017-01, 2017-03 I.R.B. 377; and Rev. Rul. 2015-26, 2015-49 I.R.B. 696.
DRAFTING INFORMATION
The principal author of this revenue ruling is Kathleen C. Arsenault of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Ms. Arsenault at (202) 317-3800 (not a toll-free number).
Bulletin No. 2020–48 1109 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
1 0.000019945 2 0.000039891 3 0.000059837 4 0.000079784 5 0.000099731
6 0.000119678 7 0.000139626 8 0.000159574 9 0.000179523 10 0.000199471
11 0.000219421 12 0.000239371 13 0.000259321 14 0.000279271 15 0.000299222
16 0.000319173 17 0.000339125 18 0.000359077 19 0.000379030 20 0.000398983
21 0.000418936 22 0.000438890 23 0.000458844 24 0.000478798 25 0.000498753
26 0.000518709 27 0.000538664 28 0.000558620 29 0.000578577 30 0.000598534
31 0.000618491 32 0.000638449 33 0.000658407 34 0.000678365 35 0.000698324
November 23, 2020 1110 Bulletin No. 2020–48
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
36 0.000718283 37 0.000738243 38 0.000758203 39 0.000778164 40 0.000798125
41 0.000818086 42 0.000838048 43 0.000858010 44 0.000877972 45 0.000897935
46 0.000917898 47 0.000937862 48 0.000957826 49 0.000977790 50 0.000997755
51 0.001017720 52 0.001037686 53 0.001057652 54 0.001077619 55 0.001097586
56 0.001117553 57 0.001137520 58 0.001157488 59 0.001177457 60 0.001197426
61 0.001217395 62 0.001237365 63 0.001257335 64 0.001277305 65 0.001297276
66 0.001317247 67 0.001337219 68 0.001357191 69 0.001377163 70 0.001397136
Bulletin No. 2020–48 1111 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
71 0.001417109 72 0.001437083 73 0.001457057 74 0.001477031 75 0.001497006
76 0.001516981 77 0.001536957 78 0.001556933 79 0.001576909 80 0.001596886
81 0.001616863 82 0.001636841 83 0.001656819 84 0.001676797 85 0.001696776
86 0.001716755 87 0.001736735 88 0.001756715 89 0.001776695 90 0.001796676
91 0.001816657 92 0.001836639 93 0.001856621 94 0.001876603 95 0.001896586
96 0.001916569 97 0.001936553 98 0.001956537 99 0.001976521 100 0.001996506
101 0.002016491 102 0.002036477 103 0.002056463 104 0.002076449 105 0.002096436
November 23, 2020 1112 Bulletin No. 2020–48
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
106 0.002116423 107 0.002136411 108 0.002156399 109 0.002176387 110 0.002196376
111 0.002216365 112 0.002236354 113 0.002256344 114 0.002276335 115 0.002296325
116 0.002316317 117 0.002336308 118 0.002356300 119 0.002376293 120 0.002396285
121 0.002416278 122 0.002436272 123 0.002456266 124 0.002476260 125 0.002496255
126 0.002516250 127 0.002536246 128 0.002556242 129 0.002576238 130 0.002596235
131 0.002616232 132 0.002636229 133 0.002656227 134 0.002676226 135 0.002696224
136 0.002716224 137 0.002736223 138 0.002756223 139 0.002776223 140 0.002796224
Bulletin No. 2020–48 1113 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
141 0.002816225 142 0.002836227 143 0.002856229 144 0.002876231 145 0.002896234
146 0.002916237 147 0.002936240 148 0.002956244 149 0.002976249 150 0.002996253
151 0.003016258 152 0.003036264 153 0.003056270 154 0.003076276 155 0.003096283
156 0.003116290 157 0.003136297 158 0.003156305 159 0.003176314 160 0.003196322
161 0.003216331 162 0.003236341 163 0.003256351 164 0.003276361 165 0.003296372
166 0.003316383 167 0.003336395 168 0.003356406 169 0.003376419 170 0.003396431
171 0.003416445 172 0.003436458 173 0.003456472 174 0.003476486 175 0.003496501
November 23, 2020 1114 Bulletin No. 2020–48
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
176 0.003516516 177 0.003536531 178 0.003556547 179 0.003576564 180 0.003596580
181 0.003616597 182 0.003636615 183 0.003656633 184 0.003676651 185 0.003696670
186 0.003716689 187 0.003736708 188 0.003756728 189 0.003776749 190 0.003796769
191 0.003816790 192 0.003836812 193 0.003856834 194 0.003876856 195 0.003896879
196 0.003916902 197 0.003936925 198 0.003956949 199 0.003976973 200 0.003996998
201 0.004017023 202 0.004037049 203 0.004057074 204 0.004077101 205 0.004097127
206 0.004117154 207 0.004137182 208 0.004157210 209 0.004177238 210 0.004197267
Bulletin No. 2020–48 1115 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
211 0.004217296 212 0.004237325 213 0.004257355 214 0.004277385 215 0.004297416
216 0.004317447 217 0.004337479 218 0.004357511 219 0.004377543 220 0.004397575
221 0.004417609 222 0.004437642 223 0.004457676 224 0.004477710 225 0.004497745
226 0.004517780 227 0.004537815 228 0.004557851 229 0.004577887 230 0.004597924
231 0.004617961 232 0.004637999 233 0.004658036 234 0.004678075 235 0.004698113
236 0.004718152 237 0.004738192 238 0.004758232 239 0.004778272 240 0.004798313
241 0.004818354 242 0.004838395 243 0.004858437 244 0.004878479 245 0.004898522
November 23, 2020 1116 Bulletin No. 2020–48
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
246 0.004918565 247 0.004938609 248 0.004958652 249 0.004978697 250 0.004998741
251 0.005018786 252 0.005038832 253 0.005058878 254 0.005078924 255 0.005098971
256 0.005119018 257 0.005139065 258 0.005159113 259 0.005179161 260 0.005199210
261 0.005219259 262 0.005239308 263 0.005259358 264 0.005279408 265 0.005299459
266 0.005319510 267 0.005339562 268 0.005359613 269 0.005379666 270 0.005399718
271 0.005419771 272 0.005439825 273 0.005459879 274 0.005479933 275 0.005499988
276 0.005520043 277 0.005540098 278 0.005560154 279 0.005580210 280 0.005600267
Bulletin No. 2020–48 1117 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
281 0.005620324 282 0.005640381 283 0.005660439 284 0.005680498 285 0.005700556
286 0.005720615 287 0.005740675 288 0.005760735 289 0.005780795 290 0.005800856
291 0.005820917 292 0.005840978 293 0.005861040 294 0.005881102 295 0.005901165
296 0.005921228 297 0.005941291 298 0.005961355 299 0.005981419 300 0.006001484
301 0.006021549 302 0.006041615 303 0.006061680 304 0.006081747 305 0.006101813
306 0.006121880 307 0.006141948 308 0.006162016 309 0.006182084 310 0.006202153
311 0.006222222 312 0.006242291 313 0.006262361 314 0.006282431 315 0.006302502
November 23, 2020 1118 Bulletin No. 2020–48
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
316 0.006322573 317 0.006342644 318 0.006362716 319 0.006382789 320 0.006402861
321 0.006422934 322 0.006443008 323 0.006463082 324 0.006483156 325 0.006503231
326 0.006523306 327 0.006543381 328 0.006563457 329 0.006583533 330 0.006603610
331 0.006623687 332 0.006643764 333 0.006663842 334 0.006683921 335 0.006703999
336 0.006724078 337 0.006744158 338 0.006764238 339 0.006784318 340 0.006804399
341 0.006824480 342 0.006844561 343 0.006864643 344 0.006884725 345 0.006904808
346 0.006924891 347 0.006944974 348 0.006965058 349 0.006985143 350 0.007005227
Bulletin No. 2020–48 1119 November 23, 2020
ANNUAL RATE, COMPOUNDED DAILY
0.73 PERCENT DAYS FACTOR
351 0.007025312 352 0.007045398 353 0.007065484 354 0.007085570 355 0.007105657
356 0.007125744 357 0.007145831 358 0.007165919 359 0.007186007 360 0.007206096
361 0.007226185 362 0.007246275 363 0.007266365 364 0.007286455 365 0.007306546
366 0.007326637 367 0.007346728 368 0.007366820 369 0.007386912 370 0.007407005
371 0.007427098
November 23, 2020 1120 Bulletin No. 2020–48
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