Rev. Rul. 2023-23

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 DISCrelated 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, 2023, is 4.93 percent.

Pursuant to section 6622 of the Internal Revenue Code, interest must be compounded daily. The table below provides factors for compounding the 2023 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. 2022-21, 2022-47 I.R.B. 468; 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; and Rev. Rul. 2017-23, 2017-49 I.R.B. 546.

DRAFTING INFORMATION

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

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 1 0.000135068 2 0.000270155 3 0.000405260 4 0.000540383 5 0.000675525

6 0.000810685 7 0.000945863 8 0.001081059 9 0.001216273 10 0.001351506

11 0.001486757 12 0.001622027 13 0.001757314 14 0.001892620 15 0.002027944

December 18, 2023 1472 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 16 0.002163286 17 0.002298647 18 0.002434026 19 0.002569423 20 0.002704839

21 0.002840273 22 0.002975725 23 0.003111195 24 0.003246684 25 0.003382191

26 0.003517716 27 0.003653260 28 0.003788822 29 0.003924402 30 0.004060001

31 0.004195618 32 0.004331253 33 0.004466906 34 0.004602578 35 0.004738268

36 0.004873977 37 0.005009704 38 0.005145449 39 0.005281212 40 0.005416994

41 0.005552794 42 0.005688613 43 0.005824450 44 0.005960305 45 0.006096178

46 0.006232070 47 0.006367980 48 0.006503909 49 0.006639856 50 0.006775821

Bulletin No. 2023–51 1473 December 18, 2023

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 51 0.006911805 52 0.007047807 53 0.007183827 54 0.007319866 55 0.007455923

56 0.007591999 57 0.007728093 58 0.007864205 59 0.008000336 60 0.008136485

61 0.008272653 62 0.008408838 63 0.008545043 64 0.008681265 65 0.008817506

66 0.008953766 67 0.009090044 68 0.009226340 69 0.009362655 70 0.009498988

71 0.009635339 72 0.009771709 73 0.009908098 74 0.010044504 75 0.010180929

76 0.010317373 77 0.010453835 78 0.010590316 79 0.010726815 80 0.010863332

81 0.010999868 82 0.011136422 83 0.011272995 84 0.011409586 85 0.011546195

December 18, 2023 1474 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 86 0.011682823 87 0.011819470 88 0.011956135 89 0.012092818 90 0.012229520

91 0.012366240 92 0.012502979 93 0.012639736 94 0.012776512 95 0.012913306

96 0.013050119 97 0.013186950 98 0.013323800 99 0.013460668 100 0.013597554

101 0.013734459 102 0.013871383 103 0.014008325 104 0.014145286 105 0.014282265

106 0.014419262 107 0.014556278 108 0.014693313 109 0.014830366 110 0.014967438

111 0.015104528 112 0.015241637 113 0.015378764 114 0.015515909 115 0.015653074

116 0.015790256 117 0.015927458 118 0.016064677 119 0.016201916 120 0.016339173

Bulletin No. 2023–51 1475 December 18, 2023

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 121 0.016476448 122 0.016613742 123 0.016751054 124 0.016888385 125 0.017025735

126 0.017163103 127 0.017300490 128 0.017437895 129 0.017575319 130 0.017712761

131 0.017850222 132 0.017987702 133 0.018125200 134 0.018262716 135 0.018400252

136 0.018537805 137 0.018675378 138 0.018812969 139 0.018950578 140 0.019088206

141 0.019225853 142 0.019363518 143 0.019501202 144 0.019638905 145 0.019776626

146 0.019914365 147 0.020052124 148 0.020189901 149 0.020327696 150 0.020465510

151 0.020603343 152 0.020741194 153 0.020879064 154 0.021016953 155 0.021154860

December 18, 2023 1476 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 156 0.021292786 157 0.021430731 158 0.021568694 159 0.021706675 160 0.021844676

161 0.021982695 162 0.022120732 163 0.022258789 164 0.022396864 165 0.022534957

166 0.022673070 167 0.022811200 168 0.022949350 169 0.023087518 170 0.023225705

171 0.023363911 172 0.023502135 173 0.023640378 174 0.023778639 175 0.023916920

176 0.024055219 177 0.024193536 178 0.024331872 179 0.024470227 180 0.024608601

181 0.024746993 182 0.024885404 183 0.025023834 184 0.025162283 185 0.025300750

186 0.025439235 187 0.025577740 188 0.025716263 189 0.025854805 190 0.025993366

Bulletin No. 2023–51 1477 December 18, 2023

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 191 0.026131945 192 0.026270543 193 0.026409160 194 0.026547796 195 0.026686450

196 0.026825123 197 0.026963815 198 0.027102525 199 0.027241254 200 0.027380002

201 0.027518769 202 0.027657554 203 0.027796358 204 0.027935181 205 0.028074023

206 0.028212883 207 0.028351763 208 0.028490661 209 0.028629577 210 0.028768513

211 0.028907467 212 0.029046440 213 0.029185432 214 0.029324442 215 0.029463471

216 0.029602520 217 0.029741586 218 0.029880672 219 0.030019776 220 0.030158900

221 0.030298042 222 0.030437203 223 0.030576382 224 0.030715581 225 0.030854798

December 18, 2023 1478 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 226 0.030994034 227 0.031133289 228 0.031272562 229 0.031411855 230 0.031551166

231 0.031690496 232 0.031829845 233 0.031969212 234 0.032108599 235 0.032248004

236 0.032387429 237 0.032526872 238 0.032666333 239 0.032805814 240 0.032945314

241 0.033084832 242 0.033224369 243 0.033363925 244 0.033503500 245 0.033643094

246 0.033782707 247 0.033922338 248 0.034061988 249 0.034201658 250 0.034341346

251 0.034481053 252 0.034620778 253 0.034760523 254 0.034900287 255 0.035040069

256 0.035179870 257 0.035319690 258 0.035459529 259 0.035599387 260 0.035739264

Bulletin No. 2023–51 1479 December 18, 2023

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 261 0.035879160 262 0.036019075 263 0.036159008 264 0.036298961 265 0.036438932

266 0.036578922 267 0.036718931 268 0.036858959 269 0.036999006 270 0.037139072

271 0.037279157 272 0.037419261 273 0.037559384 274 0.037699525 275 0.037839686

276 0.037979865 277 0.038120063 278 0.038260281 279 0.038400517 280 0.038540772

281 0.038681046 282 0.038821339 283 0.038961651 284 0.039101982 285 0.039242332

286 0.039382701 287 0.039523089 288 0.039663496 289 0.039803922 290 0.039944366

291 0.040084830 292 0.040225313 293 0.040365815 294 0.040506335 295 0.040646875

December 18, 2023 1480 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 296 0.040787433 297 0.040928011 298 0.041068608 299 0.041209223 300 0.041349858

301 0.041490511 302 0.041631184 303 0.041771875 304 0.041912586 305 0.042053315

306 0.042194064 307 0.042334832 308 0.042475618 309 0.042616424 310 0.042757248

311 0.042898092 312 0.043038955 313 0.043179837 314 0.043320737 315 0.043461657

316 0.043602596 317 0.043743554 318 0.043884530 319 0.044025526 320 0.044166541

321 0.044307575 322 0.044448628 323 0.044589701 324 0.044730792 325 0.044871902

326 0.045013031 327 0.045154179 328 0.045295347 329 0.045436533 330 0.045577739

Bulletin No. 2023–51 1481 December 18, 2023

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 331 0.045718964 332 0.045860207 333 0.046001470 334 0.046142752 335 0.046284053

336 0.046425373 337 0.046566712 338 0.046708070 339 0.046849447 340 0.046990844

341 0.047132259 342 0.047273694 343 0.047415147 344 0.047556620 345 0.047698112

346 0.047839623 347 0.047981153 348 0.048122702 349 0.048264271 350 0.048405858

351 0.048547465 352 0.048689091 353 0.048830735 354 0.048972399 355 0.049114083

356 0.049255785 357 0.049397506 358 0.049539247 359 0.049681006 360 0.049822785

361 0.049964583 362 0.050106400 363 0.050248237 364 0.050390092 365 0.050531967

December 18, 2023 1482 Bulletin No. 2023–51

ANNUAL RATE (4.93%), COMPOUNDED DAILY

DAYS FACTOR 366 0.050673861 367 0.050815773 368 0.050957706 369 0.051099657 370 0.051241627

371 0.051383617

Bulletin No. 2023–51 1483 December 18, 2023