Internal Revenue Bulletin:  2006-45 

November 6, 2006 

Rev. Rul. 2006-54


Table of Contents

2006 base period T-bill rate. The “base period T-bill rate” for the period ending September 30, 2006, 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, 2006 is 4.76 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 2006 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. 2005-70, 2005-45 I.R.B. 919, 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).

2006 ANNUAL RATE, COMPOUNDED DAILY
4.760 PERCENT
DAYS FACTOR
1 .000130411
2 .000260839
3 .000391284
4 .000521746
5 .000652225
   
6 .000782721
7 .000913234
8 .001043764
9 .001174311
10 .001304875
   
11 .001435456
12 .001566054
13 .001696670
14 .001827302
15 .001957951
   
16 .002088617
17 .002219301
18 .002350001
19 .002480719
20 .002611453
   
21 .002742205
22 .002872973
23 .003003759
24 .003134561
25 .003265381
   
26 .003396218
27 .003527072
28 .003657943
29 .003788831
30 .003919736
   
31 .004050658
32 .004181597
33 .004312553
34 .004443527
35 .004574517
   
36 .004705525
37 .004836549
38 .004967591
39 .005098650
40 .005229726
   
41 .005360819
42 .005491929
43 .005623056
44 .005754200
45 .005885362
   
46 .006016540
47 .006147736
48 .006278948
49 .006410178
50 .006541425
   
51 .006672689
52 .006803970
53 .006935269
54 .007066584
55 .007197916
   
56 .007329266
57 .007460633
58 .007592017
59 .007723418
60 .007854836
   
61 .007986271
62 .008117724
63 .008249193
64 .008380680
65 .008512184
   
66 .008643705
67 .008775243
68 .008906799
69 .009038371
70 .009169961
   
71 .009301568
72 .009433192
73 .009564833
74 .009696491
75 .009828167
   
76 .009959859
77 .010091569
78 .010223296
79 .010355040
80 .010486802
   
81 .010618580
82 .010750376
83 .010882189
84 .011014019
85 .011145866
   
86 .011277731
87 .011409612
88 .011541511
89 .011673427
90 .011805361
   
91 .011937311
92 .012069279
93 .012201264
94 .012333266
95 .012465285
   
96 .012597322
97 .012729376
98 .012861447
99 .012993535
100 .013125640
   
101 .013257763
102 .013389903
103 .013522060
104 .013654235
105 .013786426
   
106 .013918635
107 .014050861
108 .014183104
109 .014315365
110 .014447643
   
111 .014579938
112 .014712250
113 .014844580
114 .014976927
115 .015109291
   
116 .015241672
117 .015374071
118 .015506487
119 .015638920
120 .015771370
   
121 .015903838
122 .016036323
123 .016168825
124 .016301345
125 .016433882
   
126 .016566436
127 .016699007
128 .016831596
129 .016964202
130 .017096825
   
131 .017229466
132 .017362124
133 .017494799
134 .017627491
135 .017760201
   
136 .017892928
137 .018025673
138 .018158434
139 .018291213
140 .018424010
   
141 .018556823
142 .018689654
143 .018822503
144 .018955368
145 .019088251
   
146 .019221151
147 .019354069
148 .019487004
149 .019619956
150 .019752926
   
151 .019885913
152 .020018917
153 .020151939
154 .020284978
155 .020418034
   
156 .020551108
157 .020684199
158 .020817307
159 .020950433
160 .021083576
   
161 .021216737
162 .021349914
163 .021483110
164 .021616322
165 .021749552
   
166 .021882800
167 .022016064
168 .022149346
169 .022282646
170 .022415963
   
171 .022549297
172 .022682649
173 .022816018
174 .022949404
175 .023082808
   
176 .023216229
177 .023349668
178 .023483124
179 .023616597
180 .023750088
   
181 .023883596
182 .024017122
183 .024150665
184 .024284225
185 .024417803
   
186 .024551399
187 .024685011
188 .024818641
189 .024952289
190 .025085954
   
191 .025219636
192 .025353336
193 .025487054
194 .025620788
195 .025754541
   
196 .025888310
197 .026022097
198 .026155902
199 .026289724
200 .026423563
   
201 .026557420
202 .026691294
203 .026825186
204 .026959096
205 .027093022
   
206 .027226966
207 .027360928
208 .027494907
209 .027628904
210 .027762918
   
211 .027896949
212 .028030998
213 .028165065
214 .028299149
215 .028433250
   
216 .028567369
217 .028701506
218 .028835660
219 .028969831
220 .029104020
   
221 .029238227
222 .029372451
223 .029506692
224 .029640951
225 .029775227
   
226 .029909521
227 .030043833
228 .030178162
229 .030312508
230 .030446872
   
231 .030581254
232 .030715653
233 .030850070
234 .030984504
235 .031118956
   
236 .031253425
237 .031387912
238 .031522416
239 .031656938
240 .031791477
   
241 .031926034
242 .032060608
243 .032195200
244 .032329810
245 .032464437
   
246 .032599082
247 .032733744
248 .032868424
249 .033003121
250 .033137836
   
251 .033272569
252 .033407319
253 .033542086
254 .033676871
255 .033811674
   
256 .033946495
257 .034081333
258 .034216188
259 .034351061
260 .034485952
   
261 .034620860
262 .034755786
263 .034890730
264 .035025691
265 .035160669
   
266 .035295666
267 .035430680
268 .035565711
269 .035700760
270 .035835827
   
271 .035970911
272 .036106013
273 .036241133
274 .036376270
275 .036511425
   
276 .036646597
277 .036781787
278 .036916995
279 .037052221
280 .037187463
   
281 .037322724
282 .037458002
283 .037593298
284 .037728612
285 .037863943
   
286 .037999292
287 .038134658
288 .038270042
289 .038405444
290 .038540864
   
291 .038676301
292 .038811756
293 .038947228
294 .039082718
295 .039218226
   
296 .039353751
297 .039489294
298 .039624855
299 .039760434
300 .039896030
   
301 .040031644
302 .040167275
303 .040302924
304 .040438591
305 .040574276
   
306 .040709978
307 .040845698
308 .040981436
309 .041117191
310 .041252964
   
311 .041388755
312 .041524564
313 .041660390
314 .041796234
315 .041932095
   
316 .042067975
317 .042203872
318 .042339787
319 .042475719
320 .042611669
   
321 .042747637
322 .042883623
323 .043019627
324 .043155648
325 .043291687
   
326 .043427743
327 .043563818
328 .043699910
329 .043836020
330 .043972148
   
331 .044108293
332 .044244456
333 .044380637
334 .044516836
335 .044653052
   
336 .044789286
337 .044925538
338 .045061808
339 .045198096
340 .045334401
   
341 .045470724
342 .045607065
343 .045743423
344 .045879800
345 .046016194
   
346 .046152606
347 .046289036
348 .046425483
349 .046561949
350 .046698432
   
351 .046834933
352 .046971451
353 .047107988
354 .047244542
355 .047381115
   
356 .047517705
357 .047654312
358 .047790938
359 .047927581
360 .048064243
   
361 .048200922
362 .048337619
363 .048474333
364 .048611066
365 .048747816
   
366 .048884584
367 .049021370
368 .049158174
369 .049294996
370 .049431836
   
371 .049568693

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