Internal Revenue Bulletin:  2005-45 

November 7, 2005 

Rev. Rul. 2005-70


Table of Contents

2005 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2005, 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, 2005 is 3.18 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 2005 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. 2004-99, 2004-2 C.B. 720, Rev. Rul. 2003-111, 2003-2 C.B. 1009, 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).

2005 ANNUAL RATE, COMPOUNDED DAILY
3.180 PERCENT
DAYS   FACTOR
1   .000087123
2   .000174254
3   .000261393
4   .000348539
5   .000435692
     
6   .000522854
7   .000610022
8   .000697199
9   .000784383
10   .000871575
     
11   .000958774
12   .001045981
13   .001133195
14   .001220417
15   .001307647
     
16   .001394884
17   .001482129
18   .001569381
19   .001656641
20   .001743909
     
21   .001831184
22   .001918467
23   .002005757
24   .002093055
25   .002180361
     
26   .002267674
27   .002354995
28   .002442323
29   .002529659
30   .002617003
     
31   .002704354
32   .002791713
33   .002879080
34   .002966454
35   .003053836
     
36   .003141225
37   .003228622
38   .003316027
39   .003403439
40   .003490859
     
41   .003578286
42   .003665721
43   .003753164
44   .003840614
45   .003928072
     
46   .004015537
47   .004103011
48   .004190491
49   .004277980
50   .004365476
     
51   .004452979
52   .004540491
53   .004628009
54   .004715536
55   .004803070
     
56   .004890612
57   .004978161
58   .005065718
59   .005153283
60   .005240855
     
61   .005328435
62   .005416022
63   .005503618
64   .005591220
65   .005678831
     
66   .005766449
67   .005854075
68   .005941708
69   .006029349
70   .006116997
     
71   .006204654
72   .006292317
73   .006379989
74   .006467668
75   .006555355
     
76   .006643049
77   .006730751
78   .006818461
79   .006906178
80   .006993903
     
81   .007081636
82   .007169376
83   .007257124
84   .007344880
85   .007432643
     
86   .007520414
87   .007608192
88   .007695978
89   .007783772
90   .007871574
     
91   .007959383
92   .008047199
93   .008135024
94   .008222856
95   .008310695
     
96   .008398543
97   .008486398
98   .008574260
99   .008662131
100   .008750009
     
101   .008837894
102   .008925788
103   .009013689
104   .009101597
105   .009189513
     
106   .009277437
107   .009365369
108   .009453308
109   .009541255
110   .009629210
     
111   .009717172
112   .009805142
113   .009893119
114   .009981104
115   .010069097
     
116   .010157098
117   .010245106
118   .010333122
119   .010421145
120   .010509177
     
121   .010597216
122   .010685262
123   .010773316
124   .010861378
125   .010949448
     
126   .011037525
127   .011125610
128   .011213703
129   .011301803
130   .011389911
     
131   .011478026
132   .011566150
133   .011654281
134   .011742419
135   .011830566
     
136   .011918720
137   .012006881
138   .012095051
139   .012183228
140   .012271412
     
141   .012359605
142   .012447805
143   .012536013
144   .012624228
145   .012712451
     
146   .012800682
147   .012888921
148   .012977167
149   .013065421
150   .013153682
     
151   .013241952
152   .013330229
153   .013418513
154   .013506806
155   .013595106
     
156   .013683413
157   .013771729
158   .013860052
159   .013948383
160   .014036721
     
161   .014125068
162   .014213421
163   .014301783
164   .014390152
165   .014478529
     
166   .014566914
167   .014655306
168   .014743707
169   .014832114
170   .014920530
     
171   .015008953
172   .015097384
173   .015185823
174   .015274269
175   .015362723
     
176   .015451185
177   .015539654
178   .015628131
179   .015716616
180   .015805109
     
181   .015893609
182   .015982117
183   .016070633
184   .016159156
185   .016247687
     
186   .016336226
187   .016424773
188   .016513327
189   .016601889
190   .016690459
     
191   .016779036
192   .016867621
193   .016956214
194   .017044815
195   .017133423
     
196   .017222039
197   .017310663
198   .017399294
199   .017487933
200   .017576580
     
201   .017665235
202   .017753897
203   .017842567
204   .017931245
205   .018019930
     
206   .018108624
207   .018197325
208   .018286033
209   .018374750
210   .018463474
     
211   .018552206
212   .018640945
213   .018729693
214   .018818448
215   .018907211
     
216   .018995981
217   .019084760
218   .019173546
219   .019262339
220   .019351141
     
221   .019439950
222   .019528767
223   .019617592
224   .019706424
225   .019795264
     
226   .019884112
227   .019972968
228   .020061831
229   .020150702
230   .020239581
     
231   .020328468
232   .020417362
233   .020506264
234   .020595174
235   .020684092
     
236   .020773017
237   .020861950
238   .020950891
239   .021039840
240   .021128796
     
241   .021217760
242   .021306732
243   .021395712
244   .021484699
245   .021573694
     
246   .021662697
247   .021751708
248   .021840726
249   .021929752
250   .022018786
     
251   .022107828
252   .022196877
253   .022285934
254   .022374999
255   .022464072
     
256   .022553152
257   .022642240
258   .022731336
259   .022820440
260   .022909551
     
261   .022998671
262   .023087798
263   .023176933
264   .023266075
265   .023355225
     
266   .023444383
267   .023533549
268   .023622723
269   .023711904
270   .023801093
     
271   .023890290
272   .023979495
273   .024068707
274   .024157928
275   .024247156
     
276   .024336391
277   .024425635
278   .024514886
279   .024604145
280   .024693412
     
281   .024782687
282   .024871969
283   .024961260
284   .025050558
285   .025139863
     
286   .025229177
287   .025318498
288   .025407827
289   .025497164
290   .025586509
     
291   .025675861
292   .025765222
293   .025854590
294   .025943966
295   .026033349
     
296   .026122741
297   .026212140
298   .026301547
299   .026390962
300   .026480384
     
301   .026569814
302   .026659253
303   .026748699
304   .026838152
305   .026927614
     
306   .027017083
307   .027106560
308   .027196045
309   .027285538
310   .027375038
     
311   .027464547
312   .027554063
313   .027643587
314   .027733118
315   .027822658
     
316   .027912205
317   .028001760
318   .028091323
319   .028180894
320   .028270472
     
321   .028360058
322   .028449653
323   .028539254
324   .028628864
325   .028718482
     
326   .028808107
327   .028897740
328   .028987381
329   .029077030
330   .029166687
     
331   .029256351
332   .029346023
333   .029435703
334   .029525391
335   .029615087
     
336   .029704790
337   .029794501
338   .029884220
339   .029973947
340   .030063682
     
341   .030153425
342   .030243175
343   .030332933
344   .030422699
345   .030512473
     
346   .030602254
347   .030692044
348   .030781841
349   .030871646
350   .030961459
     
351   .031051280
352   .031141109
353   .031230945
354   .031320789
355   .031410641
     
356   .031500501
357   .031590369
358   .031680244
359   .031770128
360   .031860019
     
361   .031949918
362   .032039825
363   .032129740
364   .032219662
365   .032309593
     
366   .032399531
367   .032489477
368   .032579431
369   .032669392
370   .032759362
     
371   .032849339

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