US · guidance
Rev. Rul. 2024-27, 2024-51 I.R.B. 1240
Section 995.—Taxation of DISC Income to Shareholders
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 DISC-related 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, 2024, 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 2024 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. As a 366-day year is used when calculating the daily factors for leap years such as 2024, the daily factors below diverge from Rev. Rul. 2023-23 despite the identical annual rate.
For the base period T-bill rates for periods ending in prior years, see Rev. Rul. 2023-23, 2023-51 I.R.B. 1472; 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; and Rev. Rul. 2018-31, 2018-50 I.R.B. 848.
DRAFTING INFORMATION
The principal author of this revenue ruling is Stefan A. Pruessmann of the Office of Associate Chief Counsel (International). For further information regarding the revenue ruling, contact Mr. Pruessmann at (202) 317-3800 (not a toll-free number).
ANNUAL RATE (4.93%), COMPOUNDED DAILY
DAYS
FACTOR
1
0.000134699
2
0.000269417
3
0.000404153
4
0.000538907
5
0.000673679
6
0.000808469
7
0.000943277
8
0.001078104
9
0.001212948
10
0.001347811
11
0.001482692
12
0.001617591
13
0.001752509
14
0.001887444
15
0.002022398
16
0.002157370
17
0.002292360
18
0.002427368
19
0.002562395
20
0.002697439
21
0.002832502
22
0.002967583
23
0.003102682
24
0.003237800
25
0.003372935
26
0.003508089
27
0.003643261
28
0.003778451
29
0.003913660
30
0.004048886
31
0.004184131
32
0.004319394
33
0.004454675
34
0.004589975
35
0.004725293
36
0.004860628
37
0.004995983
38
0.005131355
39
0.005266746
40
0.005402155
41
0.005537582
42
0.005673027
43
0.005808491
44
0.005943973
45
0.006079473
46
0.006214991
47
0.006350528
48
0.006486082
49
0.006621656
50
0.006757247
51
0.006892857
52
0.007028485
53
0.007164131
54
0.007299795
55
0.007435478
56
0.007571179
57
0.007706898
58
0.007842636
59
0.007978392
60
0.008114166
61
0.008249958
62
0.008385769
63
0.008521598
64
0.008657445
65
0.008793311
66
0.008929195
67
0.009065097
68
0.009201017
69
0.009336956
70
0.009472913
71
0.009608889
72
0.009744883
73
0.009880895
74
0.010016925
75
0.010152974
76
0.010289041
77
0.010425126
78
0.010561230
79
0.010697352
80
0.010833492
81
0.010969651
82
0.011105828
83
0.011242024
84
0.011378237
85
0.011514469
86
0.011650720
87
0.011786989
88
0.011923276
89
0.012059581
90
0.012195905
91
0.012332248
92
0.012468608
93
0.012604987
94
0.012741384
95
0.012877800
96
0.013014234
97
0.013150687
98
0.013287158
99
0.013423647
100
0.013560154
101
0.013696680
102
0.013833225
103
0.013969788
104
0.014106369
105
0.014242968
106
0.014379586
107
0.014516223
108
0.014652877
109
0.014789551
110
0.014926242
111
0.015062952
112
0.015199681
113
0.015336427
114
0.015473193
115
0.015609976
116
0.015746779
117
0.015883599
118
0.016020438
119
0.016157295
120
0.016294171
121
0.016431066
122
0.016567978
123
0.016704909
124
0.016841859
125
0.016978827
126
0.017115814
127
0.017252818
128
0.017389842
129
0.017526884
130
0.017663944
131
0.017801023
132
0.017938120
133
0.018075236
134
0.018212370
135
0.018349523
136
0.018486694
137
0.018623883
138
0.018761091
139
0.018898318
140
0.019035563
141
0.019172827
142
0.019310109
143
0.019447409
144
0.019584728
145
0.019722066
146
0.019859422
147
0.019996796
148
0.020134189
149
0.020271601
150
0.020409031
151
0.020546479
152
0.020683946
153
0.020821432
154
0.020958936
155
0.021096459
156
0.021234000
157
0.021371559
158
0.021509138
159
0.021646734
160
0.021784349
161
0.021921983
162
0.022059636
163
0.022197306
164
0.022334996
165
0.022472704
166
0.022610430
167
0.022748175
168
0.022885939
169
0.023023721
170
0.023161522
171
0.023299341
172
0.023437179
173
0.023575036
174
0.023712911
175
0.023850804
176
0.023988716
177
0.024126647
178
0.024264596
179
0.024402564
180
0.024540551
181
0.024678556
182
0.024816579
183
0.024954622
184
0.025092682
185
0.025230762
186
0.025368860
187
0.025506976
188
0.025645112
189
0.025783266
190
0.025921438
191
0.026059629
192
0.026197839
193
0.026336067
194
0.026474314
195
0.026612579
196
0.026750864
197
0.026889166
198
0.027027488
199
0.027165828
200
0.027304187
201
0.027442564
202
0.027580960
203
0.027719374
204
0.027857808
205
0.027996259
206
0.028134730
207
0.028273219
208
0.028411727
209
0.028550254
210
0.028688799
211
0.028827363
212
0.028965945
213
0.029104546
214
0.029243166
215
0.029381804
216
0.029520462
217
0.029659137
218
0.029797832
219
0.029936545
220
0.030075277
221
0.030214028
222
0.030352797
223
0.030491585
224
0.030630392
225
0.030769217
226
0.030908061
227
0.031046924
228
0.031185805
229
0.031324705
230
0.031463624
231
0.031602562
232
0.031741518
233
0.031880493
234
0.032019487
235
0.032158499
236
0.032297530
237
0.032436580
238
0.032575649
239
0.032714736
240
0.032853843
241
0.032992967
242
0.033132111
243
0.033271273
244
0.033410454
245
0.033549654
246
0.033688873
247
0.033828110
248
0.033967366
249
0.034106641
250
0.034245935
251
0.034385247
252
0.034524578
253
0.034663928
254
0.034803297
255
0.034942684
256
0.035082090
257
0.035221515
258
0.035360959
259
0.035500422
260
0.035639903
261
0.035779403
262
0.035918922
263
0.036058460
264
0.036198016
265
0.036337592
266
0.036477186
267
0.036616799
268
0.036756430
269
0.036896081
270
0.037035750
271
0.037175438
272
0.037315145
273
0.037454871
274
0.037594616
275
0.037734379
276
0.037874161
277
0.038013962
278
0.038153782
279
0.038293621
280
0.038433479
281
0.038573355
282
0.038713250
283
0.038853164
284
0.038993097
285
0.039133049
286
0.039273020
287
0.039413009
288
0.039553018
289
0.039693045
290
0.039833091
291
0.039973156
292
0.040113240
293
0.040253342
294
0.040393464
295
0.040533604
296
0.040673764
297
0.040813942
298
0.040954139
299
0.041094355
300
0.041234590
301
0.041374844
302
0.041515116
303
0.041655408
304
0.041795718
305
0.041936047
306
0.042076396
307
0.042216763
308
0.042357149
309
0.042497554
310
0.042637978
311
0.042778420
312
0.042918882
313
0.043059363
314
0.043199862
315
0.043340381
316
0.043480918
317
0.043621474
318
0.043762050
319
0.043902644
320
0.044043257
321
0.044183889
322
0.044324540
323
0.044465210
324
0.044605899
325
0.044746607
326
0.044887333
327
0.045028079
328
0.045168844
329
0.045309628
330
0.045450430
331
0.045591252
332
0.045732092
333
0.045872952
334
0.046013830
335
0.046154728
336
0.046295644
337
0.046436580
338
0.046577534
339
0.046718508
340
0.046859500
341
0.047000511
342
0.047141542
343
0.047282591
344
0.047423660
345
0.047564747
346
0.047705853
347
0.047846979
348
0.047988123
349
0.048129287
350
0.048270469
351
0.048411671
352
0.048552891
353
0.048694131
354
0.048835389
355
0.048976667
356
0.049117963
357
0.049259279
358
0.049400614
359
0.049541967
360
0.049683340
361
0.049824732
362
0.049966143
363
0.050107572
364
0.050249021
365
0.050390489
366
0.050531976
367
0.050673482
368
0.050815008
369
0.050956552
370
0.051098115
371
0.051239697
History
Revenue Ruling published in Internal Revenue Bulletin 2024-51, December 16, 2024, at page 1240. It states no effective date of its own; this row opens at the bulletin's publication date. Filed under I.R.C. § 995 (Section 995.—Taxation of DISC Income to Shareholders).
Provenance
- Source
- irs.gov
- Retrieved
- 2026-09-20
- Edition
- irs-irb-2026-09-20
- Content hash
eb1064fafaee78f25b2956e1380da7511ee5736d8a11d904c9b755b69666c991
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