Rev. Rul. 2022-21

Section 995(f)(1) of the Internal Revenue Code provides that a shareholder of a domestic international sales corporation (“DISC”) shall pay interest for 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, 2022, is 1.71 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2022 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. 2021-22, 2021-47 I.R.B. 726; Rev. Rul. 2020-25, 2020-48 I.R.B. 1109; 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; and Rev. Rul. 2017-01, 2017-03 I.R.B. 377.

DRAFTING INFORMATION

The principal author of this revenue ruling is Jacob H. Larson of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Mr. Larson at (202) 317-3800 (not a toll-free number).

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 1 0.000046849 2 0.000093701 3 0.000140555 4 0.000187410 5 0.000234269

6 0.000281129 7 0.000327991 8 0.000374856 9 0.000421723 10 0.000468592

11 0.000515463 12 0.000562337 13 0.000609212 14 0.000656090 15 0.000702970

November 21, 2022 468 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 16 0.000749852 17 0.000796737 18 0.000843624 19 0.000890512 20 0.000937403

21 0.000984297 22 0.001031192 23 0.001078090 24 0.001124990 25 0.001171892

26 0.001218796 27 0.001265702 28 0.001312611 29 0.001359522 30 0.001406435

31 0.001453350 32 0.001500267 33 0.001547187 34 0.001594109 35 0.001641033

36 0.001687959 37 0.001734887 38 0.001781818 39 0.001828751 40 0.001875686

41 0.001922623 42 0.001969562 43 0.002016504 44 0.002063448 45 0.002110394

46 0.002157342 47 0.002204292 48 0.002251245 49 0.002298199 50 0.002345156

Bulletin No. 2022–47 469 November 21, 2022

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 51 0.002392116 52 0.002439077 53 0.002486041 54 0.002533006 55 0.002579974

56 0.002626945 57 0.002673917 58 0.002720892 59 0.002767868 60 0.002814847

61 0.002861829 62 0.002908812 63 0.002955797 64 0.003002785 65 0.003049775

66 0.003096767 67 0.003143762 68 0.003190758 69 0.003237757 70 0.003284758

71 0.003331761 72 0.003378767 73 0.003425774 74 0.003472784 75 0.003519796

76 0.003566811 77 0.003613827 78 0.003660846 79 0.003707866 80 0.003754889

81 0.003801915 82 0.003848942 83 0.003895972 84 0.003943004 85 0.003990038

November 21, 2022 470 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 86 0.004037074 87 0.004084112 88 0.004131153 89 0.004178196 90 0.004225241

91 0.004272288 92 0.004319338 93 0.004366389 94 0.004413443 95 0.004460499

96 0.004507558 97 0.004554618 98 0.004601681 99 0.004648746 100 0.004695813

101 0.004742882 102 0.004789954 103 0.004837027 104 0.004884103 105 0.004931181

106 0.004978262 107 0.005025344 108 0.005072429 109 0.005119516 110 0.005166605

111 0.005213696 112 0.005260790 113 0.005307886 114 0.005354984 115 0.005402084

116 0.005449186 117 0.005496291 118 0.005543398 119 0.005590507 120 0.005637618

Bulletin No. 2022–47 471 November 21, 2022

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 121 0.005684731 122 0.005731847 123 0.005778965 124 0.005826085 125 0.005873207

126 0.005920332 127 0.005967458 128 0.006014587 129 0.006061718 130 0.006108852

131 0.006155987 132 0.006203125 133 0.006250265 134 0.006297407 135 0.006344551

136 0.006391698 137 0.006438847 138 0.006485998 139 0.006533151 140 0.006580306

141 0.006627464 142 0.006674624 143 0.006721786 144 0.006768950 145 0.006816116

146 0.006863285 147 0.006910456 148 0.006957629 149 0.007004804 150 0.007051982

151 0.007099161 152 0.007146343 153 0.007193527 154 0.007240714 155 0.007287902

November 21, 2022 472 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 156 0.007335093 157 0.007382286 158 0.007429481 159 0.007476678 160 0.007523878

161 0.007571080 162 0.007618284 163 0.007665490 164 0.007712699 165 0.007759909

166 0.007807122 167 0.007854337 168 0.007901554 169 0.007948774 170 0.007995996

171 0.008043220 172 0.008090446 173 0.008137674 174 0.008184905 175 0.008232137

176 0.008279372 177 0.008326610 178 0.008373849 179 0.008421091 180 0.008468334

181 0.008515580 182 0.008562829 183 0.008610079 184 0.008657332 185 0.008704587

186 0.008751844 187 0.008799103 188 0.008846365 189 0.008893629 190 0.008940894

Bulletin No. 2022–47 473 November 21, 2022

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 191 0.008988163 192 0.009035433 193 0.009082706 194 0.009129981 195 0.009177258

196 0.009224537 197 0.009271818 198 0.009319102 199 0.009366388 200 0.009413676

201 0.009460966 202 0.009508259 203 0.009555554 204 0.009602851 205 0.009650150

206 0.009697451 207 0.009744755 208 0.009792061 209 0.009839369 210 0.009886679

211 0.009933992 212 0.009981306 213 0.010028623 214 0.010075942 215 0.010123264

216 0.010170587 217 0.010217913 218 0.010265241 219 0.010312571 220 0.010359904

221 0.010407239 222 0.010454575 223 0.010501915 224 0.010549256 225 0.010596599

November 21, 2022 474 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 226 0.010643945 227 0.010691293 228 0.010738643 229 0.010785996 230 0.010833350

231 0.010880707 232 0.010928066 233 0.010975428 234 0.011022791 235 0.011070157

236 0.011117525 237 0.011164895 238 0.011212267 239 0.011259642 240 0.011307019

241 0.011354398 242 0.011401779 243 0.011449163 244 0.011496548 245 0.011543936

246 0.011591326 247 0.011638719 248 0.011686113 249 0.011733510 250 0.011780909

251 0.011828310 252 0.011875714 253 0.011923119 254 0.011970527 255 0.012017937

256 0.012065350 257 0.012112764 258 0.012160181 259 0.012207600 260 0.012255021

Bulletin No. 2022–47 475 November 21, 2022

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 261 0.012302445 262 0.012349871 263 0.012397298 264 0.012444729 265 0.012492161

266 0.012539596 267 0.012587032 268 0.012634471 269 0.012681913 270 0.012729356

271 0.012776802 272 0.012824250 273 0.012871700 274 0.012919152 275 0.012966607

276 0.013014063 277 0.013061522 278 0.013108984 279 0.013156447 280 0.013203913

281 0.013251381 282 0.013298851 283 0.013346323 284 0.013393798 285 0.013441275

286 0.013488754 287 0.013536235 288 0.013583718 289 0.013631204 290 0.013678692

291 0.013726182 292 0.013773674 293 0.013821169 294 0.013868666 295 0.013916165

November 21, 2022 476 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 296 0.013963666 297 0.014011170 298 0.014058675 299 0.014106183 300 0.014153694

301 0.014201206 302 0.014248721 303 0.014296238 304 0.014343757 305 0.014391278

306 0.014438801 307 0.014486327 308 0.014533855 309 0.014581385 310 0.014628918

311 0.014676453 312 0.014723989 313 0.014771529 314 0.014819070 315 0.014866613

316 0.014914159 317 0.014961707 318 0.015009258 319 0.015056810 320 0.015104365

321 0.015151922 322 0.015199481 323 0.015247042 324 0.015294606 325 0.015342172

326 0.015389740 327 0.015437310 328 0.015484883 329 0.015532457 330 0.015580034

Bulletin No. 2022–47 477 November 21, 2022

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 331 0.015627614 332 0.015675195 333 0.015722779 334 0.015770365 335 0.015817953

336 0.015865543 337 0.015913136 338 0.015960731 339 0.016008328 340 0.016055927

341 0.016103529 342 0.016151132 343 0.016198738 344 0.016246347 345 0.016293957

346 0.016341570 347 0.016389185 348 0.016436802 349 0.016484421 350 0.016532043

351 0.016579667 352 0.016627293 353 0.016674921 354 0.016722551 355 0.016770184

356 0.016817819 357 0.016865456 358 0.016913096 359 0.016960738 360 0.017008381

361 0.017056028 362 0.017103676 363 0.017151327 364 0.017198979 365 0.017246634

November 21, 2022 478 Bulletin No. 2022–47

ANNUAL RATE (1.71%), COMPOUNDED DAILY

DAYS FACTOR 366 0.017294292 367 0.017341951 368 0.017389613 369 0.017437277 370 0.017484943

371 0.017532612

Bulletin No. 2022–47 479 November 21, 2022