Internal Revenue Bulletin:  2003-45 

November 10, 2003 

Rev. Rul. 2003-111


Table of Contents

2003 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2003, is published as required by section 995(f) of the Code.

2003 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2003, is published as required by section 995(f) of the Code.

2003 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2003, is published as required by section 995(f) of the Code.

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 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, 2003, is 1.30 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 2003 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. 2002-68, 2002-2 C.B. 808, Rev. Rul. 2001-56, 2001-2 C.B. 500, and Rev. Rul. 2000-52, 2000-2 C.B. 516.

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 at

(202) 622-3850 (not a toll-free call).

2003 ANNUAL RATE, COMPOUNDED DAILY
DAYS 1.30 PERCENT FACTOR
1 .000035616
2 .000071234
3 .000106853
4 .000142473
5 .000178095
   
6 .000213718
7 .000249342
8 .000284967
9 .000320594
10 .000356221
   
11 .000391851
12 .000427481
13 .000463113
14 .000498746
15 .000534380
   
16 .000570015
17 .000605652
18 .000641290
19 .000676929
20 .000712570
   
21 .000748212
22 .000783855
23 .000819499
24 .000855145
25 .000890792
   
26 .000926440
27 .000962089
28 .000997740
29 .001033392
30 .001069045
   
31 .001104700
32 .001140355
33 .001176012
34 .001211671
35 .001247330
   
36 .001282991
37 .001318653
38 .001354317
39 .001389981
40 .001425647
   
41 .001461315
42 .001496983
43 .001532653
44 .001568324
45 .001603996
   
46 .001639670
47 .001675345
48 .001711021
49 .001746698
50 .001782377
   
51 .001818057
52 .001853738
53 .001889420
54 .001925104
55 .001960789
   
56 .001996475
57 .002032163
58 .002067852
59 .002103542
60 .002139233
   
61 .002174926
62 .002210620
63 .002246315
64 .002282011
65 .002317709
   
66 .002353408
67 .002389108
68 .002424810
69 .002460513
70 .002496217
   
71 .002531922
72 .002567629
73 .002603337
74 .002639046
75 .002674756
   
76 .002710468
77 .002746181
78 .002781895
79 .002817611
80 .002853327
   
81 .002889045
82 .002924765
83 .002960485
84 .002996207
85 .003031930
   
86 .003067655
87 .003103381
88 .003139107
89 .003174836
90 .003210565
   
91 .003246296
92 .003282028
93 .003317761
94 .003353496
95 .003389232
   
96 .003424969
97 .003460707
98 .003496447
99 .003532188
100 .003567930
   
101 .003603674
102 .003639419
103 .003675165
104 .003710912
105 .003746661
   
106 .003782411
107 .003818162
108 .003853914
109 .003889668
110 .003925423
   
111 .003961179
112 .003996937
113 .004032695
114 .004068455
115 .004104217
   
116 .004139979
117 .004175743
118 .004211508
119 .004247275
120 .004283043
   
121 .004318812
122 .004354582
123 .004390353
124 .004426126
125 .004461900
   
126 .004497676
127 .004533452
128 .004569230
129 .004605009
130 .004640790
   
131 .004676572
132 .004712355
133 .004748139
134 .004783924
135 .004819711
   
136 .004855499
137 .004891289
138 .004927079
139 .004962871
140 .004998664
   
141 .005034459
142 .005070255
143 .005106052
144 .005141850
145 .005177650
   
146 .005213450
147 .005249253
148 .005285056
149 .005320861
150 .005356667
   
151 .005392474
152 .005428282
153 .005464092
154 .005499903
155 .005535715
   
156 .005571529
157 .005607344
158 .005643160
159 .005678977
160 .005714796
   
161 .005750616
162 .005786437
163 .005822260
164 .005858084
165 .005893909
   
166 .005929735
167 .005965563
168 .006001392
169 .006037222
170 .006073053
   
171 .006108886
172 .006144720
173 .006180555
174 .006216392
175 .006252230
   
176 .006288069
177 .006323909
178 .006359751
179 .006395594
180 .006431438
   
181 .006467284
182 .006503130
183 .006538979
184 .006574828
185 .006610678
   
186 .006646530
187 .006682384
188 .006718238
189 .006754094
190 .006789951
   
191 .006825809
192 .006861668
193 .006897529
194 .006933391
195 .006969255
   
196 .007005119
197 .007040985
198 .007076853
199 .007112721
200 .007148591
   
201 .007184462
202 .007220334
203 .007256208
204 .007292083
205 .007327959
   
206 .007363836
207 .007399715
208 .007435595
209 .007471476
210 .007507359
   
211 .007543243
212 .007579128
213 .007615014
214 .007650902
215 .007686791
   
216 .007722681
217 .007758572
218 .007794465
219 .007830359
220 .007866255
   
221 .007902151
222 .007938049
223 .007973948
224 .008009849
225 .008045750
   
226 .008081653
227 .008117558
228 .008153463
229 .008189370
230 .008225278
   
231 .008261188
232 .008297098
233 .008333010
234 .008368923
235 .008404838
   
236 .008440754
237 .008476671
238 .008512589
239 .008548509
240 .008584430
   
241 .008620352
242 .008656275
243 .008692200
244 .008728126
245 .008764053
   
246 .008799982
247 .008835912
248 .008871843
249 .008907775
250 .008943709
   
251 .008979644
252 .009015580
253 .009051518
254 .009087457
255 .009123397
   
256 .009159338
257 .009195281
258 .009231225
259 .009267170
260 .009303117
   
261 .009339064
262 .009375013
263 .009410964
264 .009446915
265 .009482868
   
266 .009518822
267 .009554778
268 .009590735
269 .009626693
270 .009662652
   
271 .009698613
272 .009734574
273 .009770538
274 .009806502
275 .009842468
   
276 .009878435
277 .009914403
278 .009950373
279 .009986343
280 .010022315
   
281 .010058289
282 .010094264
283 .010130240
284 .010166217
285 .010202195
   
286 .010238175
287 .010274156
288 .010310139
289 .010346122
290 .010382107
   
291 .010418093
292 .010454081
293 .010490070
294 .010526060
295 .010562051
   
296 .010598044
297 .010634038
298 .010670033
299 .010706029
300 .010742027
   
301 .010778026
302 .010814026
303 .010850028
304 .010886031
305 .010922035
   
306 .010958040
307 .010994047
308 .011030055
309 .011066064
310 .011102075
   
311 .011138087
312 .011174100
313 .011210114
314 .011246130
315 .011282147
   
316 .011318165
317 .011354185
318 .011390206
319 .011426228
320 .011462251
   
321 .011498276
322 .011534302
323 .011570329
324 .011606358
325 .011642387
   
326 .011678419
327 .011714451
328 .011750485
329 .011786520
330 .011822556
   
331 .011858593
332 .011894632
333 .011930672
334 .011966714
335 .012002756
   
336 .012038800
337 .012074845
338 .012110892
339 .012146940
340 .012182989
   
341 .012219039
342 .012255091
343 .012291144
344 .012327198
345 .012363253
   
346 .012399310
347 .012435368
348 .012471427
349 .012507488
350 .012543550
   
351 .012579613
352 .012615678
353 .012651743
354 .012687811
355 .012723879
   
356 .012759948
357 .012796019
358 .012832092
359 .012868165
360 .012904240
   
361 .012940316
362 .012976393
363 .013012472
364 .013048552
365 .013084633
   
366 .013120715
367 .013156799
368 .013192884
369 .013228970
370 .013265058
   
371 .013301147

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