IRS Revenue Ruling
1997-49

 
Code Sec. 995

<<FULL TEXT>>

1997 base period T-bill rate. The "base period T-bill rate" for the period
ending September 30, 1997, is published, as required by section 995(f)(4)
of the Code.

REV. RUL. 97-49

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 investment
yield of United States Treasury bills with maturities of 52 weeks which
were auctioned during the one-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, 1997, is 5.68 percent.

Pursuant to section 6622 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 1997 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 tax able 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. 86-132, 1986-2 C.B. 137; Rev. Rul. 87-129, 1987-2 C.B. 196;
Rev. Rul. 88-94, 1988-2 C.B. 301; Rev. Rul. 89-116, 1989-2 C.B. 197; Rev.
Rul. 90-96, 1990-2 C.B. 188; Rev. Rul. 91-59, 1991-2 C.B. 347; Rev. Rul.
92-98, 1992-2 C.B. 201; Rev. Rul. 93-77, 1993-2 C.B. 253; Rev. Rul. 94-68,
1994-2 C.B. 177; Rev. Rul. 95-77, 1995-2 C.B. 122; and Rev. Rul. 96-55,
1996-2 C.B. 57.


DRAFTING INFORMATION

The principal author of this revenue ruling is David Bergkuist of the
Office of the Associate Chief Counsel (International). For further
information about this revenue ruling, contact Mr. Bergkuist on (202)
622-3850 (not a toll-free call).


1997 ANNUAL RATE, COMPOUNDED DAILY

5.68 PERCENT 5.68 PERCENT
DAYS FACTOR DAYS FACTOR
---- ------------ ---- ------------
1 .000155616 191 .030166487
2 .000311257 192 .030326798
3 .000466922 193 .030487134
4 .000622611 194 .030647495
5 .000778324 195 .030807880
6 .000934062 196 .030968291
7 .001089824 197 .031128727
8 .001245610 198 .031289187
9 .001401420 199 .031449673
10 .001557255 200 .031610183
11 .001713113 201 .031770719
12 .001868996 202 .031931279
13 .002024904 203 .032091865
14 .002180835 204 .032252475
15 .002336791 205 .032413111
16 .002492771 206 .032573771
17 .002648775 207 .032734457
18 .002804804 208 .032895167
19 .002960857 209 .033055902
20 .003116934 210 .033216663
21 .003273036 211 .033377448
22 .003429161 212 .033538259
23 .003585312 213 .033699094
24 .003741486 214 .033859955
25 .003897685 215 .034020841
26 .004053908 216 .034181751
27 .004210155 217 .034342687
28 .004366426 218 .034503648
29 .004522722 219 .034664633
30 .004679043 220 .034825644
31 .004835387 221 .034986680
32 .004991756 222 .035147741
33 .005148149 223 .035308827
34 .005304567 224 .035469938
35 .005461009 225 .035631074
36 .005617475 226 .035792236
37 .005773966 227 .035953422
38 .005930481 228 .036114633
39 .006087020 229 .036275870
40 .006243584 230 .036437131
41 .006400172 231 .036598418
42 .006556784 232 .036759730
43 .006713421 233 .036921067
44 .006870082 234 .037082428
45 .007026768 235 .037243816
46 .007183478 236 .037405228
47 .007340212 237 .037566665
48 .007496971 238 .037728127
49 .007653754 239 .037889615
50 .007810561 240 .038051128
51 .007967393 241 .038212666
52 .008124249 242 .038374229
53 .008281130 243 .038535817
54 .008438035 244 .038697430
55 .008594965 245 .038859068
56 .008751919 246 .039020732
57 .008908897 247 .039182420
58 .009065900 248 .039344134
59 .009222927 249 .039505873
60 .009379979 250 .039667638
61 .009537055 251 .039829427
62 .009694155 252 .039991242
63 .009851280 253 .040153081
64 .010008430 254 .040314946
65 .010165604 255 .040476836
66 .010322802 256 .040638752
67 .010480025 257 .040800692
68 .010637272 258 .040962658
69 .010794544 259 .041124649
70 .010951840 260 .041286665
71 .011109161 261 .041448706
72 .011266506 262 .041610773
73 .011423876 263 .041772864
74 .011581270 264 .041934981
75 .011738689 265 .042097124
76 .011896132 266 .042259291
77 .012053600 267 .042421484
78 .012211092 268 .042583702
79 .012368608 269 .042745945
80 .012526150 270 .042908213
81 .012683715 271 043070507
82 .012841306 272 .043232826
83 .012998920 273 .043395170
84 .013156560 274 .043557539
85 .013314223 275 .043719934
86 .013471912 276 .043882354
87 .013629625 277 .044044799
88 .013787362 278 .044207270
89 .013945124 279 .044369766
90 .014102911 280 .044532287
91 .014260722 281 .044694833
92 .014418557 282 .044857405
93 .014576418 283 .045020002
94 .014734302 284 .045182624
95 .014892212 285 .045345272
96 .015050146 286 .045507945
97 .015208104 287 .045670643
98 .015366087 288 .045833366
99 .015524095 289 .045996115
100 .015682127 290 .046158889
101 .015840184 291 .046321689
102 .015998265 292 .046484514
103 .016156371 293 .046647364
104 .016314502 294 .046810240
105 .016472657 295 .046973140
106 .016630837 296 .047136067
107 .016789042 297 .047299018
108 .016947271 298 .047461995
109 .017105524 299 .047624998
110 .017263803 300 .047788025
111 .017422106 301 .047951078
112 .017580433 302 .048114157
113 .017738786 303 .048277260
114 .017897162 304 .048440390
115 .018055564 305 .048603544
116 .018213990 306 .048766724
117 .018372441 307 .048929929
118 .018530916 308 .049093160
119 .018689417 309 .049256416
120 .018847941 310 .049419698
121 .019006491 311 .049583005
122 .019165065 312 .049746337
123 .019323664 313 .049909695
124 .019482287 314 .050073078
125 .019640936 315 .050236487
126 .019799609 316 .050399921
127 .019958306 317 .050563380
128 .020117028 318 .050726865
129 .020275775 319 .050890376
130 .020434547 320 .051053912
131 .020593343 321 .051217473
132 .020752165 322 .051381060
133 .020911010 323 .051544672
134 .021069881 324 .051708309
135 .021228776 325 .051871972
136 .021387696 326 .052035661
137 .021546641 327 .052199375
138 .021705610 328 .052363115
139 .021864604 329 .052526880
140 .022023623 330 .052690670
141 .022182667 331 .052854486
142 .022341736 332 .053018327
143 .022500829 333 .053182194
144 .022659947 334 .053346087
145 .022819089 335 .053510005
146 .022978257 336 .053673948
147 .023137449 337 .053837917
148 .023296666 338 .054001912
149 .023455908 339 .054165932
150 .023615174 340 .054329977
151 .023774466 341 .054494048
152 .023933782 342 .054658145
153 .024093123 343 .054822267
154 .024252489 344 .054986415
155 .024411879 345 .055150588
156 .024571294 346 .055314787
157 .024730734 347 .055479011
158 .024890199 348 .055643261
159 .025049689 349 .055807537
160 .025209204 350 .055971838
161 .025368743 351 .056136164
162 .025528307 352 .056300516
163 .025687896 353 .056464894
164 .025847510 354 .056629297
165 .026007149 355 .056793726
166 .026166813 356 .056958181
167 .026326501 357 .057122661
168 .026486214 358 .057287166
169 .026645953 359 .057451698
170 .026805716 360 .057616255
171 .026965503 361 .057780837
172 .027125316 362 .057945445
173 .027285154 363 .058110079
174 .027445016 364 .058274738
175 .027604903 365 .058439423
176 .027764816 366 .058604134
177 .027924753 367 .058768870
178 .028084715 368 .058933632
179 .028244702 369 .059098419
180 .028404713 370 .059263232
181 .028564750 371 .059428071

<<END RULING>>
 

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