Revenue Ruling 2005-37
Rev. Rul. 2005-37
Rev. Rul. 2005-37, 2005-26 I.R.B. 1343
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                    LIFO; PRICE INDEXES; DEPARTMENT STORES
                           Published: June 27, 2005
 Section 472.-Last-in, First-out Inventories, 26 CFR 1.472-1: Last-in, first-out inventories.
 LIFO; price indexes; department stores. The April 2005 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 2005.
 LIFO; price indexes; department stores. The April 2005 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, April 30, 2005.
 The following Department Store Inventory Price Indexes for April 2005 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under s 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, April 30, 2005.
 The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.
   BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY
                              DEPARTMENT GROUPS
                 (January 1941 = 100, unless otherwise noted)
                  Groups                Apr 2004 Apr 2005  Percent Change
                                                               from Apr 2004
                                                              to Apr 20051
——————————————————————————-
1.  Piece Goods ……………………… 491.0    469.8              -4.3
2.  Domestics and Draperies …………… 539.7    539.1              -0.1
3.  Women’s and Children’s Shoes ………. 654.5    679.7               3.9
4.  Men’s Shoes ……………………… 856.4    876.6               2.4
5.  Infants’ Wear ……………………. 586.1    582.7              -0.6
6.  Women’s Underwear ………………… 493.2    545.2              10.5
7.  Women’s Hosiery ………………….. 336.2    342.9               2.0
8.  Women’s and Girls’ Accessories …….. 564.2    599.6               6.3
9.  Women’s Outerwear and Girls’ Wear ….. 389.2    376.2              -3.3
10. Men’s Clothing …………………… 545.9    565.6               3.6
11. Men’s Furnishings ………………… 592.7    586.6              -1.0
12. Boys’ Clothing and Furnishings …….. 459.4    440.4              -4.1
13. Jewelry …………………………. 893.0    879.9              -1.5
14. Notions …………………………. 799.3    779.0              -2.5
15. Toilet Articles and Drugs …………. 987.5    994.4               0.7
16. Furniture and Bedding …………….. 618.0    604.2              -2.2
17. Floor Coverings ………………….. 598.8    601.0               0.4
18. Housewares ………………………. 715.3    714.1              -0.2
19. Major Appliances …………………. 201.8    202.8               0.5
20. Radio and Television ………………. 42.7     39.5              -7.5
21. Recreation and Education2 ………… 81.2     78.3              -3.6
22. Home Improvements2 ……………… 128.0    136.4               6.6
23. Automotive Accessories2 …………. 112.1    114.4               2.1
 Rev. Rul. 2005-37, 2005-26 I.R.B. 1343
Internal Revenue Service Revenue Ruling
Revenue Ruling 2005-42
Rev. Rul. 2005-42
Rev. Rul. 2005-42
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                            Released: June 20, 2005
 Section 263A Capitalization and Inclusion in Inventory Costs of Certain Expenses
26 CFR 1.263A-1: Uniform capitalization of costs.
ISSUE
 Are environmental remediation costs incurred to clean up land that a taxpayer contaminated with hazardous waste by the operation of the taxpayer’s manufacturing activities properly allocable under s 263A of the Internal Revenue Code to the inventory produced during the taxable year the costs are incurred?
FACTS
 Situation 1. N, a corporation using an accrual method of accounting, owns land and operates a manufacturing plant on Site X that N uses to produce stoves. Stoves are the only property produced by N and are inventory in N’s hands. N’s manufacturing activities discharge hazardous waste. In the past, N buried this waste on portions of Site X in accordance with then applicable law. Site X was not contaminated by hazardous waste when purchased by N.
 In order to comply with federal, state, and local environmental requirements, N incurs costs in 2005 to remediate the contaminated soil and groundwater at Site X. The costs N incurs are not research and experimental expenditures within the meaning of s 174, qualified environmental remediation expenditures within the meaning of s 198(b), or environmental management policy costs. The soil remediation and groundwater treatment restores Site X to essentially the same physical condition that existed prior to the contamination. The soil remediation and groundwater treatment does not materially add to the value of Site X, appreciably prolong its life, or adapt it to a new or different use. During and after the remediation, N continues to manufacture stoves at Site X.
 Situation 2. The facts are the same as in Situation 1, except that N manufactures clothes washers at Site X and no longer manufactures stoves. Clothes washers are the only property produced by N and are inventory in N’s hands. Situation 3. The facts are the same as in Situation 1, except that N temporarily ceases its manufacturing activities at Site X during a part of 2005 while it remediates the contaminated soil and groundwater.
 Situation 4. The facts are the same as in Situation 1, except that N has permanently ceased its manufacturing activities at Site X and manufactures stoves at another site.
 Situation 5. The facts are the same as in Situation 1, except that in the past N buried the waste on portions of Site Y, a remote dump site that N did not own or otherwise use in its manufacturing activities. N was not obligated to clean up the site when N buried the waste. In order to comply with federal, state, and local environmental requirements, N incurs costs in 2005 to remediate the contaminated soil and groundwater at Site Y. The soil remediation and groundwater treatment restores Site Y to essentially the same physical condition that existed prior to the contamination. The soil remediation and groundwater treatment does not materially add to the value of any of N’s property, appreciably prolong its life, or adapt it to a new or different use. During and after the remediation, N continues to manufacture stoves at Site X, but has permanently stopped using Site Y to bury waste.
LAW
 Section 263A(a) provides that the direct costs and indirect costs properly allocable to property that is inventory in the hands of the taxpayer are included in inventory costs.
 Section 1.263A-1(a)(3)(ii) of the Income Tax Regulations provides, in part, that taxpayers that produce tangible personal property must capitalize (1) all direct costs of producing the property, and (2) the property’s properly allocable share of indirect costs.
 Section 1.263A-1(c)(1) provides that to determine these capitalizable costs, taxpayers must allocate or apportion costs to various activities, including production activities. Section 1.263A-1(c)(1) further provides that after s 263A costs are allocated to the appropriate production activities, these costs generally are allocated to the items of property produced during the taxable year and capitalized to the items that remain on hand at the end of the taxable year. As a result, costs incurred during the taxable year are either included in the cost of goods sold during the taxable year or are capitalized to the items that remain on hand at the end of the taxable year using a method permitted under s 1.263A-1(f). Section 1.263A-1(c)(2)(ii) provides that the amount of any cost required to be capitalized under s 263A may not be included in inventory or charged to capital accounts or basis any earlier than the taxable year during which the amount is incurred within the meaning of s 1.446-1(c)(1)(ii).
 Section 1.263A-1(c)(3) provides that capitalize means, in the case of property that is inventory in the hands of a taxpayer, to include in inventory costs.
 Section 1.263A-1(c)(4) provides that costs that are capitalized under s 263A are recovered through depreciation, amortization, cost of goods sold, or by an adjustment to basis at the time the property is used, sold, placed in service, or otherwise disposed of by the taxpayer.
 Section 1.263A-1(e)(3)(i) provides, in part, that indirect costs are properly allocable to property produced when the costs directly benefit or are incurred by reason of the performance of production activities. Generally, producers must capitalize direct and indirect costs properly allocable to property produced under s 263A, without regard to whether those costs are incurred before, during, or after production. See s 1.263A-2(a)(3)(i).
 Section 1.263A-1(e)(3)(ii) provides examples of indirect costs that must be capitalized to the extent they are properly allocable to property produced. Indirect costs required to be capitalized include the costs of repairing and maintaining production equipment or facilities. See s 1.263A-1(e)(3)(ii)(O). In addition, costs related to temporarily idle production equipment or facilities,
other than depreciation, amortization and cost recovery allowances, are indirect costs that are required to be capitalized. See s 1.263A-1(e)(3)(iii)(E).
 Rev. Rul. 94-38, 1994-1 C.B. 35, holds that costs incurred to clean up land and to treat groundwater contaminated with hazardous waste from the taxpayer’s business are not capital expenditures under s 263 because these costs do not materially add value to the land, prolong the useful life of the land or adapt the land to a new or different use and, therefore, such costs are deductible by the taxpayer as business expenses under s 162. Costs incurred for constructing groundwater treatment facilities, however, are capital expenditures under s 263.
 Rev. Rul. 2004-18, 2004-1 C.B. 509, considers whether costs incurred to clean up land that a taxpayer contaminated with hazardous waste by the operation of the taxpayer’s manufacturing activities are includible in inventory costs under s 263A. Rev. Rul. 2004-18 states that the holding of Rev. Rul. 94-38 that the costs to construct a groundwater treatment facility must be capitalized under ss 263(a) and 263A, rather than deducted under s 162, demonstrates the distinction between capital expenditures and costs that are more in the nature of repairs than capital improvements. As with other types of deductible business costs, such as labor costs, taxes, rent, and supplies, once repair costs are determined to be deductible under s 162, a taxpayer with inventories still must apply the rules of s 263A to determine whether the repair costs must be included in inventory. Rev. Rul. 2004-18 concludes, therefore, that environmental remediation costs similarly are subject to capitalization under s 263A and are required to be included in inventory costs under the facts of that ruling.
ANALYSIS
 Environmental remediation costs incurred to clean up land and to treat groundwater that a taxpayer contaminated with hazardous waste from its production activities do not materially add to the value of the land, appreciably prolong its life, or adapt it to a new or different use. Rev. Rul. 94-38. Thus, these costs are more in the nature of repairs than capital improvements and, under s 263A, are indirect costs that must be included in inventory costs to the extent allocable to inventory. Rev. Rul. 2004-18. Generally, repair costs incurred to keep equipment or facilities used in production activities in an ordinarily efficient operating condition directly benefit or are incurred by reason of the performance of the production activities and, therefore, are properly allocable to inventory, without regard to whether those costs are incurred before, during, or after production. See ss 1.263A-1(e)(3)(i), 1.263A-1(e)(3)(ii)(O) and 1.263A-2(a)(3)(i). Under ss 1.263A-1(c)(1) and 1.263A-1(c)(2), these repair costs are allocable to the property produced during the taxable year in which the costs are incurred, even though the repairs may have been necessitated by the use of the equipment or facilities in the production of property in prior taxable periods.
 Like repair costs, environmental remediation costs incurred by a taxpayer to clean up land and to treat groundwater that the taxpayer contaminated with hazardous waste from its production activities are costs that directly benefit or are incurred by reason of the performance of the production activities even if the condition that necessitated the remediation arose during prior taxable periods. See s 1.263A-2(a)(3)(i). As with repair costs, environmental remediation costs are properly allocable to inventory without regard to whether those costs are incurred before, during, or after production. See s 1.263A-1(c)(2). Likewise, remediation costs are allocable under s 1.263A-1(c)(1) to the property produced during the taxable year in which the costs are incurred.
 In Situation 1, during 2005, N manufactures stoves at Site X. The costs N incurs in 2005 to clean up Site X are incurred by reason of N’s production activities, within the meaning of s 1.263A-1(e)(3)(i). Because the environmental remediation costs to clean up Site X are incurred in 2005, they are properly allocable to the inventory produced by N in 2005, in accordance with ss 1.263A-1(c)(1) and 1.263A-1(c)(2). Therefore, the environmental remediation costs are allocable to the stoves produced by N during 2005, using an allocation method permitted under s 1.263A-1(f).
 In Situation 2, during 2005, N manufactures clothes washers at Site X. The costs N incurs in 2005 to clean up Site X are incurred by reason of N’s production activities, within the meaning of s 1.263A-1(e)(3)(i). Because the environmental remediation costs to clean up Site X are incurred in 2005, they are properly allocable to the inventory produced by N in 2005, in accordance with ss 1.263A-1(c)(1) and 1.263A-1(c)(2). Therefore, the environmental remediation costs are allocable to the clothes washers produced by N during 2005, using an allocation method permitted under s 1.263A-1(f).
 In Situation 3, during a part of 2005, Site X is temporarily idle. Nevertheless, the costs N incurs in 2005 to clean up Site X are incurred by reason of N’ s production activities, within the meaning of s 1.263A-1(e)(3)(i). See s 1.263A-2(a)(3)(i). Because the environmental remediation costs to clean up Site X are incurred in 2005, they are properly allocable to the inventory produced by N in 2005, in accordance with ss 1.263A-1(c)(1) and 1.263A-1(c)(2). Therefore, the environmental remediation costs are allocable to the stoves produced by N during 2005, using an allocation method permitted under s 1.263A-1(f).
 In Situation 4, N has permanently ceased its manufacturing activities at Site X. Nevertheless, the costs N incurs in 2005 to clean up Site X are incurred by reason of N’s production activities, within the meaning of s 1.263A-1(e)(3)(i). See s 1.263A-2(a)(3)(i). Because the environmental remediation costs to clean up Site X are incurred in 2005, they are properly allocable to the inventory produced by N in 2005, in accordance with ss 1.263A-1(c)(1) and 1.263A-1(c)(2). Therefore, the environmental remediation costs are allocable to the stoves produced by N during 2005, using an allocation method permitted under s 1.263A-1(f).
 In Situation 5, N has permanently ceased burying waste from its manufacturing activities on Site Y. Nevertheless, the costs N incurs in 2005 to clean up Site Y are incurred by reason of N’s production activities, within the meaning of s 1.263A-1(e)(3)(i). See s 1.263A-2(a)(3)(i). Because the environmental remediation costs to clean up Site Y are incurred in 2005, they are properly allocable to the inventory produced by N in 2005, in accordance with ss 1.263A-1(c)(1) and 1.263A-1(c)(2). Therefore, the environmental remediation costs are allocable to the stoves produced by N during 2005, using an allocation method permitted under s 1.263A-1(f).
HOLDING
 Environmental remediation costs that are incurred to clean up land that a taxpayer contaminated with hazardous waste by the operation of the taxpayer’s manufacturing activities are incurred by reason of the taxpayer’s production activities and are properly allocable under s 263A to the inventory produced during the taxable year the costs are incurred.
CHANGE IN METHOD OF ACCOUNTING
 A taxpayer using a method of accounting that does not comply with this revenue ruling is using an impermissible method of accounting. Any change in a taxpayer’s treatment of environmental remediation costs to conform with this revenue ruling is a change
in method of accounting to which the provisions of s s 446 and 481 and the regulations thereunder apply.
 A taxpayer changing its method of accounting to comply with this revenue ruling must file a Form 3115 in accordance with the automatic change in method of accounting provisions of Rev. Proc. 2002-9, 2002-1 C.B. 327, as modified and clarified by Announcement 2002-17, 2002-1 C.B. 561, modified and amplified by Rev. Proc. 2002-19, 2002-1 C.B. 696, and amplified, clarified, and modified by Rev. Proc. 2002-54, 2002-2 C.B. 432, except that the scope limitations in section 4.02 of Rev. Proc. 2002-9 do not apply to a taxpayer that makes the change for its first or second taxable year ending after February 6, 2004. A taxpayer that files Form 3115 to comply with Rev. Rul. 2004-18 and this revenue ruling for its first taxable year ending after February 6, 2004, may effect the change using either a s 481(a) adjustment as provided in sections 5.03 and 5.04 of Rev. Proc. 2002-9 or a cut-off method. See Rev. Rul. 2004-18. Additionally, a taxpayer that (1) files a Form 3115 on or before July 20, 2005, to comply with Rev. Rul. 2004-18, for its first taxable year ending after February 6, 2004, or was not required to change its method of accounting to comply with Rev. Rul. 2004-18, and (2) files Form 3115 to comply with this revenue ruling for its first taxable year ending after June 20, 2005, may effect the change using either a s 481(a) adjustment or a cut-off method.
 For purposes of Line 1a of Form 3115 (revised December 2003), the designated number for the automatic accounting method change authorized by this revenue ruling is “92.” A taxpayer making the automatic change in method of accounting authorized by this revenue ruling and another automatic change in method of accounting under s 263A for the same taxable year may file one Form 3115 to make both changes, but must comply with the ordering rules of s 1.263A-7(b)(2) and must enter the automatic accounting method change numbers for both changes on Line 1a of Form 3115 (revised December 2003).
EFFECT ON OTHER DOCUMENTS
 Rev. Proc. 2002-9 is modified and amplified to include in the APPENDIX the automatic change provided in this revenue ruling.
DRAFTING INFORMATION
 The principal author of this revenue ruling is John Roman Faron of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this revenue ruling, contact Mr. Faron at 202-622-4930 (not a toll-free call).
 Rev. Rul. 2005-42
Revenue Ruling 2005-36
Rev. Rul. 2005-36
Rev. Rul. 2005-36, 2005-26 I.R.B. 1368
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
    INDIVIDUAL RETIREMENT ACCOUNT (IRA); DECEDENT; BENEFICIARY’S DISCLAIMER
                           Published: June 27, 2005
 Section 401.–Qualified Pension, Profit-Sharing, and Stock Bonus Plans, 26 CFR 1.401(a)(9)-5: Required minimum distributions from defined contribution plans.
 Where a beneficiary accepts the required minimum distribution from a decedent’s individual retirement account (IRA), the beneficiary is not precluded from making a qualified disclaimer under section 2518 of the Code of a beneficial interest in the IRA.
Section 2518.–Disclaimers, 26 CFR 25.2518: Qualified disclaimers of property.
 Individual Retirement Account (IRA); decedent; beneficiary’s disclaimer. This ruling discusses whether a beneficiary’s disclaimer of a beneficial interest in a decedent’s IRA is a qualified disclaimer under section 2518 of the Code even though prior to making the disclaimer, the beneficiary receives from the IRA the required minimum distribution for the year of the decedent’s death.
 Individual Retirement Account (IRA); decedent; beneficiary’s disclaimer. This ruling discusses whether a beneficiary’s disclaimer of a beneficial interest in a decedent’s IRA is a qualified disclaimer under section 2518 of the Code even though prior to making the disclaimer, the beneficiary receives from the IRA the required minimum distribution for the year of the decedent’s death.
ISSUE
 Is a beneficiary’s disclaimer of a beneficial interest in a decedent’s individual retirement account (IRA) a qualified disclaimer under s 2518 of the Internal Revenue Code even though, prior to making the disclaimer, the beneficiary receives the required minimum distribution for the year of the decedent’s death from the IRA?
FACTS
 Decedent dies in 2004. At the time of death, Decedent is the owner of an IRA described in s 408(a) with assets having a fair market value of $2,000x. Decedent’s “required beginning date,” as described in s 401(a)(9)(A), occurred prior to 2004, and accordingly Decedent was receiving annual distributions from the IRA prior to the time of death. However, at the time of death, Decedent had not received the required minimum distribution for the 2004 calendar year.
 Situation 1: Under the terms of the IRA beneficiary designation pursuant to the IRA governing instrument, Decedent’s spouse, Spouse, is designated as the sole beneficiary of the IRA after Decedent’s death. A, the child of Decedent and Spouse, is designated as the beneficiary in the event Spouse predeceases Decedent. Three months after Decedent’s death, in accordance with s 1.401(a)(9)-5, A-4, of the Income Tax Regulations, the IRA custodian pays Spouse $100x, the required minimum distribution for 2004. No other amounts have been paid from the IRA since Decedent’s date of death.
 Seven months after Decedent’s death, Spouse executes a written instrument pursuant to which Spouse disclaims the pecuniary amount of $600x of the IRA account balance plus the income attributable to the $600x amount earned after the date of death. The income earned by the IRA between the date of Decedent’s death and the date of Spouse’s disclaimer is $40x. The disclaimer is valid and effective under applicable state law. Under applicable state law, as a result of the disclaimer, Spouse is treated as predeceasing Decedent with respect to the disclaimed property. As soon as the disclaimer is made, in accordance with the IRA beneficiary designation, A, as successor beneficiary is paid the $600x amount disclaimed, plus that portion of IRA income earned between the date of death and the date of the disclaimer attributable to the $600x amount ($12x).
 Situation 2: The facts are the same as in Situation 1, except that, instead of disclaiming a pecuniary amount, Spouse validly disclaims, in the written instrument, 30 percent of Spouse’s entire interest in the principal and income of the balance of the IRA account remaining after the $100x required minimum distribution for 2004 and after reduction for the pre-disclaimer income attributable to the $100x required minimum distribution ($2x). As soon as the disclaimer is made, in accordance with the beneficiary designation, A is paid 30 percent of the excess of the remaining account balance over $2x.
 Situation 3: The facts are the same as in Situation 1, except that A is designated as the sole beneficiary of the IRA after Decedent’s death, Spouse is designated as the beneficiary in the event A predeceases Decedent, and the $100x required minimum distribution for 2004 is paid to A 3 months after Decedent’s death. Seven months after Decedent’s death, A disclaims the entire remaining balance of the IRA account except for $2x, the income attributable to the $100x required minimum distribution paid to A. As soon as the disclaimer is made, in accordance with the IRA beneficiary designation, the balance of the IRA account, less $2x, is distributed to Spouse as successor beneficiary. A receives a total of $102x.
LAW AND ANALYSIS
 Section 408(a) provides that the term “individual retirement account” means a trust created or organized in the United States for the exclusive benefit of an individual or his or her beneficiaries, but only if the written governing instrument creating the trust meets certain specified requirements.
 Section 408(a)(6) provides that, under regulations prescribed by the Secretary, rules similar to the rules of s 401(a)(9) and the incidental death benefit requirements of s 401(a) shall apply to the distribution of the entire interest of an individual for whose benefit an IRA trust is maintained.
 Under s 401(a)(9)(A), a trust will not constitute a qualified trust unless the plan provides that the entire interest of each employee (i) will be distributed to such employee not later than the required beginning date, or (ii) will be distributed, beginning not later than the required beginning date, in accordance with regulations, over the life of such employee or over the lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary).
 Under s 1.408-8, A-1, an IRA is subject to the required minimum distribution rules of s 401(a)(9) and must satisfy the
requirements of ss 1.401(a)(9)-1 through 1.401(a)(9)-9 in the same manner as a plan, except as otherwise specified in s 1.408-8. Under s 1.408-8, A-1, for purposes of applying the rules of ss 1.401(a)(9)-1 through 1.401(a)(9)-9, the IRA owner is substituted for the employee. Under s 1.408-8, A-3, the term “required beginning date” means April 1 of the calendar year following the calendar year in which the IRA owner attains age 70 1/2.
 Under s 1.401(a)(9)-4, A-1, a designated beneficiary is an individual who is designated as a beneficiary either by the terms of the plan or by an affirmative election by the employee (or the employee’s surviving spouse) specifying the beneficiary. A beneficiary designated as such under the plan is an individual who is entitled to a portion of an employee’s benefit, contingent on the employee’s death or another specified event.
 Section 1.401(a)(9)-4, A-4, provides that the employee’s designated beneficiary generally will be determined based on the beneficiaries designated as of the employee’s date of death who remain beneficiaries as of September 30th of the calendar year following the calendar year of the employee’s death. Generally, any person who was a beneficiary as of the employee’s date of death, but is not a beneficiary as of that September 30th (e.g., because the person receives the entire benefit to which the person is entitled before that September 30th), is not taken into account in determining the employee’s designated beneficiary for purposes of determining the distribution period for required minimum distributions after the employee’s death. Accordingly, if a person disclaims entitlement to the employee’s benefit by a disclaimer that satisfies s 2518 by that September 30th, thereby allowing other beneficiaries to receive the disclaimed benefit instead, the disclaimant is not taken into account in determining the employee’s designated beneficiary.
 Under s 2518(a), if a person makes a qualified disclaimer with respect to any interest in property, then for estate, gift, and generation-skipping transfer tax purposes, the disclaimed interest will be treated as if the interest had never been transferred to the disclaimant. Instead, the interest will be considered as having passed directly from the decedent to the person entitled to receive the property as a result of the disclaimer.
 Under s 2518(b), the term “qualified disclaimer” means an irrevocable and unqualified refusal by a person to accept an interest in property, but only if: (1) the refusal is in writing; (2) the writing is received by the transferor of the interest, his or her legal representative, or the holder of the legal title to the property to which the interest relates, not later than the date that is 9 months after the later of — (A) the date on which the transfer creating the interest in the person is made, or (B) the day on which the person attains the age of 21; (3) the person has not accepted the interest or any of its benefits; and (4) as a result of the refusal, the interest passes without any direction on the part of the person making the disclaimer and passes either–(A) to the spouse of the decedent, or (B) to a person other than the person making the disclaimer.
 Section 25.2518-2(d)(1) of the Gift Tax Regulations provides that a qualified disclaimer cannot be made with respect to an interest in property if the disclaimant has accepted the interest or any of its benefits, expressly or impliedly, prior to making the disclaimer. Acceptance is manifested by an affirmative act that is consistent with ownership of the interest in the property. Acts indicative of acceptance include: using the property or the interest in the property; accepting dividends, interest, or rents from the property; and directing others to act with respect to the property or interest in the property. However, a disclaimant is not considered to have accepted the property merely because, under applicable local law, title to the property vests immediately on the decedent’s death in the disclaimant.
 Section 25.2518-3 provides rules regarding the circumstances under which an individual may make a qualified disclaimer of less than the individual’s entire interest in property and may accept the balance of the property. Section 25.2518-3(b) provides that a disclaimer of an undivided portion of a separate interest in property that meets the other requirements of a qualified disclaimer under s 2518(b) and the corresponding regulations is a qualified disclaimer. Under the regulations, each interest in property that is separately created by the transferor is treated as a separate interest in property. An undivided portion of a disclaimant’s separate interest in property must consist of a fraction or percentage of each and every substantial interest or right owned by the disclaimant in the property and must extend over the entire term of the disclaimant’s interest in the property and in other property into which the property is converted.
 Section 25.2518-3(c) provides that the disclaimer of a specific pecuniary amount out of a pecuniary or nonpecuniary bequest or gift can be a qualified disclaimer provided that no income or other benefit of the disclaimed amount inures to the benefit of the disclaimant either prior to or subsequent to the disclaimer. Following the disclaimer, the amount disclaimed and any income attributable to that amount must be segregated based on the fair market value of the assets on the date of the disclaimer or on a basis that is fairly representative of the value changes that may have occurred between the date of transfer and the date of the disclaimer. The regulation further provides that a pecuniary amount that is distributed to the disclaimant from the bequest prior to the disclaimer is treated as a distribution of corpus from the bequest that does not preclude a disclaimer with respect to the balance of the bequest. However, the acceptance of a distribution from the bequest is considered an acceptance of a proportionate amount of the income earned by the bequest. That income must be similarly segregated from the disclaimed amount and cannot be disclaimed. The regulation provides a formula to determine the proportionate share of the income considered to be accepted by the disclaimant, and thus, not eligible to be disclaimed, as follows:
——————————————————————————-
Total amount of distributions received by       Total amount of income earned
 the disclaimant out of gift or bequest          by the bequest
____________________________________________Â XÂ between the date of
Total value of the gift or bequest on the       transfer and the date of
 date of the transfer                            disclaimer
——————————————————————————-
See s 25.2518-3(d), Example 17 (illustrating a beneficiary’s qualified disclaimer of an interest in a brokerage account passing to the beneficiary when, prior to the disclaimer, the beneficiary withdrew a pecuniary amount from the account); see also s 25.2518-3(d), Example 19 (regarding a pecuniary disclaimer funded on a basis that is fairly representative of value changes that
occurred between the date of transfer and the date of the disclaimer).
 In Situations 1, 2, and 3, the beneficiary’s receipt of the $100x distribution from the IRA constitutes an acceptance of $100x of corpus, plus the income attributable to that amount. Based on the formula contained in s 25.2518-3(c), the amount of income attributable to the $100x distribution that the beneficiary is deemed to have accepted, and therefore cannot disclaim, is $2x computed as follows:
——————————————————————————-
$100x (distribution)
___________________________________
$2000x (date of death value of IRA)Â XÂ $40x (IRA income from date of death to
                                         date of disclaimer)
——————————————————————————-
 However, the beneficiary’s acceptance of these amounts does not preclude the beneficiary from making a qualified disclaimer with respect to all or a portion of the balance of the IRA.
 Accordingly, in Situation 1, assuming the other requirements of s 2518(b) are satisfied, Spouse’s disclaimer constitutes a qualified disclaimer under s 2518(b) of the $600x pecuniary amount, plus $12x (the IRA income attributable to the disclaimed amount ($600x/$2000x X $40x)).
 In Situation 2, Spouse disclaims, in accordance with s 25.2518-3(b), an undivided portion (30 percent) of Spouse’s principal and income interest in the remaining IRA account balance, rather than a pecuniary amount as in Situation 1. However, as in Situation 1, Spouse’s receipt of the $100x distribution also constitutes acceptance of $2x of income deemed attributable to the amount distributed. Spouse may not disclaim any portion of the $2x. Therefore, in Situation 2, assuming the other requirements of s 2518(b) are satisfied, Spouse’s disclaimer of 30 percent of Spouse’s entire interest in the principal and income of the balance of the IRA account remaining after the $100x required minimum distribution for 2004 and after reduction for the pre-disclaimer income attributable to that amount ($2x), constitutes a qualified disclaimer to the extent of 30 percent of the remaining IRA account balance after reduction for the $2x of income Spouse is deemed to have accepted (that is, .30 X [value of remaining account balance on date of disclaimer - $2x]).
 The results in Situations 1 and 2 would be the same if the amount disclaimed, plus that portion of the post-death IRA income attributable to the disclaimed amount, is not distributed outright to A, but instead is segregated and maintained in a separate IRA account of which A is the beneficiary as described in s 1.401(a)(9)-8, A-3. See also, s 1.401(a)(9)-8, A-2(a)(2). Separate accounts for A and Spouse may be made effective as of the date of Decedent’s death in 2004, and the 2004 required minimum distribution does not have to be allocated among the beneficiaries of the separate accounts for purposes of the separate account rules under s 1.401(a)(9)-8, A-3.
 In Situation 3, A disclaims A’s entire principal and income interest in the remaining IRA account balance after the payment of the required minimum distribution for 2004, except for $2x. As in Situations 1 and 2, A’s receipt of the $100x required minimum distribution also constitutes an acceptance of the $2x of income that is deemed attributable to the required minimum distribution that is distributed. A may not disclaim any portion of the $2x. Therefore, in Situation 3, assuming the other requirements of s 2518(b) are satisfied, A’s disclaimer of the entire principal and income balance of the IRA remaining after the payment of the required minimum distribution for 2004, except for $2x (that is, 100% of value of the remaining account balance on the date of the disclaimer, less $2x) constitutes a qualified disclaimer.
 In addition, under s 1.401(a)(9)-4, A-4, any person who was a beneficiary of the employee’s benefit as of the date of the employee’s death, but is not a beneficiary as of September 30th of the calendar year following the calendar year of the employee’s death, is not considered a designated beneficiary for purposes of s 401(a)(9). In Situation 3, A both received the required minimum distribution amount and timely disclaimed entitlement to the entire balance of the IRA account on or before September 30, 2005. Accordingly, if A is paid the $2x of income attributable to the required minimum distribution amount on or before September 30, 2005, A will be treated as not entitled to any further benefit as of September 30, 2005, and therefore, A will not be considered a designated beneficiary of the IRA for purposes of s 401(a)(9).
HOLDINGS
 A beneficiary’s disclaimer of a beneficial interest in a decedent’s IRA is a qualified disclaimer under s 2518 (if all of the requirements of that section are met), even though, prior to making the disclaimer, the beneficiary receives the required minimum distribution for the year of the decedent’s death from the IRA. The beneficiary may make a qualified disclaimer under s 2518 with respect to all or a portion of the balance of the account, other than the income attributable to the required minimum distribution that the beneficiary received, provided that at the time the disclaimer is made, the disclaimed amount and the income attributable to the disclaimed amount are paid to the beneficiary entitled to receive the disclaimed amount, or are segregated in a separate account.
 Further, a person disclaiming his or her entire remaining interest in an IRA will not be considered a designated beneficiary of the IRA for purposes of s 401(a)(9), if the qualified disclaimer is made on or before September 30th of the calendar year following the calendar year of the employee’s death, and if, on or before that September 30th, the disclaimant is paid the income attributable to the required minimum distribution amount, so that the disclaimant is not entitled to any further benefit in the IRA after September 30th of the calendar year following the calendar year of the employee’s death.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Susan H. Levy of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Susan H. Levy at (202) 622- 3090 (not a toll-free call).
 Rev. Rul. 2005-36, 2005-26 I.R.B. 1368
Revenue Ruling 2005-38
Rev. Rul. 2005-38
Rev. Rul. 2005-38, 2005-27 I.R.B. 6
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
     FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE
                         AND THE LONG-TERM EXEMPT RATE
                            Released: June 17, 2005
                            Published: July 5, 2005
 Section 42.–Low-Income Housing Credit
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 280G.–Golden Parachute Payments
 Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 382.–Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change
 The adjusted applicable federal long-term rate is set forth for the month of July 2005.
Section 412.–Minimum Funding Standards
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 467.–Certain Payments for the Use of Property or Services
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 468.–Special Rules for Mining and Solid Waste Reclamation and Closing Costs
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 482.–Allocation of Income and Deductions Among Taxpayers
 Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 483.–Interest on Certain Deferred Payments
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 642.–Special Rules for Credits and Deductions
 Federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 807.–Rules for Certain Reserves
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 846.–Discounted Unpaid Losses Defined
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 1288.–Treatment of Original Issue Discount on Tax-Exempt Obligations
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 7520.–Valuation Tables
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 7872.–Treatment of Loans With Below-Market Interest Rates
 The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2005.
Section 1274.–Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
 Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for July 2005.
 Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for July 2005.
 This revenue ruling provides various prescribed rates for federal income tax purposes for July 2005 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the blended annual rate for 2005 for purposes of section 7872.
—————————————————-
            REV. RUL. 2005-38 TABLE 1
   Applicable Federal Rates (AFR) for July 2005
              Period for Compounding
           Annual   Semiannual Quarterly Monthly
Short-Term
      AFR 3.45%    3.42%      3.41%     3.40%
 110% AFR 3.80%    3.76%      3.74%     3.73%
 120% AFR 4.14%    4.10%      4.08%     4.07%
 130% AFR 4.50%    4.45%      4.43%     4.41%
 Mid-Term
      AFR 3.86%    3.82%      3.80%     3.79%
 110% AFR 4.24%    4.20%      4.18%     4.16%
 120% AFR 4.63%    4.58%      4.55%     4.54%
 130% AFR 5.03%    4.97%      4.94%     4.92%
 150% AFR 5.81%    5.73%      5.69%     5.66%
 175% AFR 6.80%    6.69%      6.63%     6.60%
 Long-Term
      AFR 4.35%    4.30%      4.28%     4.26%
 110% AFR 4.79%    4.73%      4.70%     4.68%
 120% AFR 5.23%    5.16%      5.13%     5.11%
 130% AFR 5.67%    5.59%      5.55%     5.53%
—————————————————-
—————————————————————
                  REV. RUL. 2005-38 TABLE 2
                 Adjusted AFR for July 2005
                   Period for Compounding
                        Annual Semiannual Quarterly Monthly
Short-term adjusted AFRÂ 2.82%Â Â 2.80%Â Â Â Â Â Â 2.79%Â Â Â Â Â 2.78%
Mid-term adjusted AFRÂ Â Â 3.06%Â Â 3.04%Â Â Â Â Â Â 3.03%Â Â Â Â Â 3.02%
Long-term adjusted AFRÂ Â 4.09%Â Â 4.05%Â Â Â Â Â Â 4.03%Â Â Â Â Â 4.02%
—————————————————————
——————————————————————————-
                          REV. RUL. 2005-38 TABLE 3
                    Rates Under Section 382 for July 2005
Adjusted federal long-term rate for the current month                    4.09%
Long-term tax-exempt rate for ownership changes during the current month 4.37%
 (the highest of the adjusted federal long-term rates for the current
 month and the prior two months.)
——————————————————————————-
——————————————————————————-
                          REV. RUL. 2005-38 TABLE 4
        Appropriate Percentages Under Section 42(b)(2) for July 2005
Appropriate percentage for the 70% present value low-income housing      7.95%
 credit
Appropriate percentage for the 30% present value low-income housing      3.41%
 credit
——————————————————————————-
——————————————————————————-
                          REV. RUL. 2005-38 TABLE 5
                    Rate Under Section 7520 for July 2005
Applicable federal rate for determining the present value of an annuity,  4.6%
 an interest for life or a term of years, or a remainder or reversionary
 interest
——————————————————————————-
——————————————————
             REV. RUL. 2005-38 TABLE 6
       Rate Under Section 7520 for July 2005
            Blended Annual Rate for 2005
Section 7872(e)(2) blended annual rate for 2005Â 3.11%
——————————————————
 Rev. Rul. 2005-38, 2005-27 I.R.B. 6
Revenue Ruling 2005-40
Rev. Rul. 2005-40
Rev. Rul. 2005-40, 2005-27 I.R.B. 4
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                    INSURANCE, FEDERAL INCOME TAX PURPOSES
                            Released: June 17, 2005
                            Published: July 5, 2005
 Section 162.–Trade or Business Expenses, 26 CFR 1.162-1: Business expenses.
 A revenue ruling that sets forth circumstances in which arrangements between unrelated entities do not constitute, and a circumstance in which such arrangements do constitute, insurance for federal income tax purposes.
Section 831.–Tax on Insurance Companies Other Than Life Insurance Companies
 Insurance, federal income tax purposes. This ruling considers four circumstances in which arrangements between unrelated entities do, and do not, constitute insurance for federal income tax purposes and whether the issuer qualifies as an insurance company for federal income tax purposes.
 Insurance, federal income tax purposes. This ruling considers four circumstances in which arrangements between unrelated entities do, and do not, constitute insurance for federal income tax purposes and whether the issuer qualifies as an insurance company for federal income tax purposes.
ISSUE
 Do the arrangements described below constitute insurance for federal income tax purposes? If so, are amounts paid to the issuer deductible as insurance premiums and does the issuer qualify as an insurance company?
FACTS
 Situation 1. X, a domestic corporation, operates a courier transport business covering a large portion of the United States. X owns and operates a large fleet of automotive vehicles representing a significant volume of independent, homogeneous risks. For valid, non-tax business purposes, X entered into an arrangement with Y, an unrelated domestic corporation, whereby in exchange for an agreed amount of “premiums,” Y “insures” X against the risk of loss arising out of the operation of its fleet in the conduct of its courier business.
 The amount of “premiums” under the arrangement is determined at arm’s length according to customary insurance industry rating formulas. Y possesses adequate capital to fulfill its obligations to X under the agreement, and in all respects operates in accordance with the applicable requirements of state law. There are no guarantees of any kind in favor of Y with respect to the agreement, nor are any of the “premiums” paid by X to Y in turn loaned back to X. X has no obligation to pay Y additional premiums if X’s actual losses during any period of coverage exceed the “premiums” paid by X. X will not be entitled to any refund of “premiums” paid if X’s actual losses are lower than the “premiums” paid during any period. In all respects, the parties conduct themselves consistent with the standards applicable to an insurance arrangement between unrelated parties, except that Y does not “insure” any entity other than X.
 Situation 2. The facts are the same as in Situation 1 except that, in addition to its arrangement with X, Y enters into an arrangement with Z, a domestic corporation unrelated to X or Y, whereby in exchange for an agreed amount of “premiums,” Y also “insures” Z against the risk of loss arising out of the operation of its own fleet in connection with the conduct of a courier business substantially similar to that of X. The amounts Y earns from its arrangements with Z constitute 10% of Y’s total amounts earned during the taxable year on both a gross and net basis. The arrangement with Z accounts for 10% of the total risks borne by Y.
 Situation 3. X, a domestic corporation, operates a courier transport business covering a large portion of the United States. X conducts the courier transport business through 12 limited liability companies (LLCs) of which it is the single member. The LLCs are disregarded as entities separate from X under the provisions of s 301.7701-3 of the Procedure and Administration Regulations. The LLCs own and operate a large fleet of automotive vehicles, collectively representing a significant volume of independent, homogeneous risks. For valid, non-tax business purposes, the LLCs entered into arrangements with Y, an unrelated domestic corporation, whereby in exchange for an agreed amount of “premiums,” Y “insures” the LLCs against the risk of loss arising out of the operation of the fleet in the conduct of their courier business. None of the LLCs account for less than 5%, or more than 15%, of the total risk assumed by Y under the agreements.
 The amount of “premiums” under the arrangement is determined at arm’s length according to customary insurance industry rating formulas. Y possesses adequate capital to fulfill its obligations to the LLCs under the agreement, and in all respects operates in accordance with the licensing and other requirements of state law. There are no guarantees of any kind in favor of Y with respect to the agreements, nor are any of the “premiums” paid by the LLCs to Y in turn loaned back to X or to the LLCs. No LLC has any obligation to pay Y additional premiums if that LLC’s actual losses during the arrangement exceed the “premiums” paid by that LLC. No LLC will be entitled to a refund of “premiums” paid if that LLC’s actual losses are lower than the “premiums” paid during any period. Y retains the risks that it assumes under the agreement. In all respects, the parties conduct themselves consistent with the standards applicable to an insurance arrangement between unrelated parties, except that Y does not “insure” any entity other than the LLCs.
 Situation 4. The facts are the same as in Situation 3, except that each of the 12 LLCs elects pursuant to s 301.7701-3(a) to be classified as an association.
LAW
 Section 831(a) of the Internal Revenue Code provides that taxes, computed as provided in s 11, are imposed for each taxable year on the taxable income of each insurance company other than a life insurance company. Section 831(c) provides that, for purposes of s 831, the term “insurance company” has the meaning given to such term by s 816(a). Under s 816(a), the term “insurance company”
means any company more than half of the business of which during the taxable year is the issuing of insurance or annuity contracts or the reinsuring of risks underwritten by insurance companies.
 Section 162(a) provides, in part, that there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. Section 1.162-1(a) of the Income Tax Regulations provides, in part, that among the items included in business expenses are insurance premiums against fire, storms, theft, accident, or other similar losses in the case of a business.
 Neither the Code nor the regulations define the terms “insurance” or “insurance contract.” The United States Supreme Court, however, has explained that in order for an arrangement to constitute insurance for federal income tax purposes, both risk shifting and risk distribution must be present. Helvering v. Le Gierse, 312 U.S. 531 (1941).
 The risk transferred must be risk of economic loss. Allied Fidelity Corp. v. Commissioner, 572 F.2d 1190, 1193 (7th Cir.), cert. denied, 439 U.S. 835 (1978). The risk must contemplate the fortuitous occurrence of a stated contingency, Commissioner v. Treganowan, 183 F.2d 288, 290-91 (2d Cir.), cert. denied, 340 U.S. 853 (1950), and must not be merely an investment or business risk. Le Gierse, at 542; Rev. Rul. 89-96, 1989-2 C.B. 114.
 Risk shifting occurs if a person facing the possibility of an economic loss transfers some or all of the financial consequences of the potential loss to the insurer, such that a loss by the insured does not affect the insured because the loss is offset by a payment from the insurer. Risk distribution incorporates the statistical phenomenon known as the law of large numbers. Distributing risk allows the insurer to reduce the possibility that a single costly claim will exceed the amount taken in as premiums and set aside for the payment of such a claim. By assuming numerous relatively small, independent risks that occur randomly over time, the insurer smooths out losses to match more closely its receipt of premiums. Clougherty Packing Co. v. Commissioner, 811 F.2d 1297, 1300 (9th Cir. 1987).
 Courts have recognized that risk distribution necessarily entails a pooling of premiums, so that a potential insured is not in significant part paying for its own risks. Humana, Inc. v. Commissioner, 881 F.2d 247, 257 (6th Cir. 1989). See also Ocean Drilling & Exploration Co. v. United States, 988 F.2d 1135, 1153 (Fed. Cir. 1993) (”Risk distribution involves spreading the risk of loss among policyholders.”); Beech Aircraft Corp. v. United States, 797 F.2d 920, 922 (10th Cir. 1986) (”‘[R]isk distributing’ means that the party assuming the risk distributes his potential liability, in part, among others.”); Treganowan, at 291 (quoting Note, The New York Stock Exchange Gratuity Fund: Insurance that Isn’t Insurance, 59 Yale L. J. 780, 784 (1950)) (”‘By diffusing the risks through a mass of separate risk shifting contracts, the insurer casts his lot with the law of averages. The process of risk distribution, therefore, is the very essence of insurance.”‘); Crawford Fitting Co. v. United States, 606 F. Supp. 136, 147 (N.D. Ohio 1985) (”[T]he court finds … that various nonaffiliated persons or entities facing risks similar but independent of those faced by plaintiff were named insureds under the policy, enabling the distribution of the risk thereunder.”); AMERCO and Subsidiaries v. Commissioner, 96 T.C. 18, 41 (1991), aff’d, 979 F.2d 162 (9th Cir. 1992) (”The concept of risk-distributing emphasizes the pooling aspect of insurance: that it is the nature of an insurance contract to be part of a larger collection of coverages, combined to distribute risk between insureds.”).
ANALYSIS
 In order to determine the nature of an arrangement for federal income tax purposes, it is necessary to consider all the facts and circumstances in a particular case, including not only the terms of the arrangement, but also the entire course of conduct of the parties. Thus, an arrangement that purports to be an insurance contract but lacks the requisite risk distribution may instead be characterized as a deposit arrangement, a loan, a contribution to capital (to the extent of net value, if any), an indemnity arrangement that is not an insurance contract, or otherwise, based on the substance of the arrangement between the parties. The proper characterization of the arrangement may determine whether the issuer qualifies as an insurance company and whether amounts paid under the arrangement may be deductible.
 In Situation 1, Y enters into an “insurance” arrangement with X. The arrangement with X represents Y’s only such agreement. Although the arrangement may shift the risks of X to Y, those risks are not, in turn, distributed among other insureds or policyholders. Therefore, the arrangement between X and Y does not constitute insurance for federal income tax purposes.
 In Situation 2, the fact that Y also enters into an arrangement with Z does not change the conclusion that the arrangement between X and Y lacks the requisite risk distribution to constitute insurance. Y’s contract with Z represents only 10% of the total amounts earned by Y, and 10% of total risks assumed, under all its arrangements. This creates an insufficient pool of other premiums to distribute X’s risk. See Rev. Rul. 2002-89, 2002-2 C.B. 984 (concluding that risks from unrelated parties representing 10% of total risks borne by subsidiary are insufficient to qualify arrangement between parent and subsidiary as insurance).
 In Situation 3, Y contracts only with 12 single member LLCs through which X conducts a courier transport business. The LLCs are disregarded as entities separate from X pursuant to s 301.7701-3. Section 301.7701-2(a) provides that if an entity is disregarded, its activities are treated in the same manner as a sole proprietorship, branch or division of the owner. Applying this rule in Situation 3, Y has entered into an “insurance” arrangement only with X. Therefore, for the reasons set forth in Situation 1 above, the arrangement between X and Y does not constitute insurance for federal income tax purposes.
 In Situation 4, the 12 LLCs are not disregarded as entities separate from X, but instead are classified as associations for federal income tax purposes. The arrangements between Y and each LLC thus shift a risk of loss from each LLC to Y. The risks of the LLCs are distributed among the various other LLCs that are insured under similar arrangements. Therefore the arrangements between the 12 LLCs and Y constitute insurance for federal income tax purposes. See Rev. Rul. 2002-90, 2002-2 C.B. 985 (similar arrangements between affiliated entities constituted insurance). Because the arrangements with the 12 LLCs represent Y’s only business, and those arrangements are insurance contracts for federal income tax purposes, Y is an insurance company within the meaning of ss 831(c) and 816(a). In addition, the 12 LLCs may be entitled to deduct amounts paid under those arrangements as insurance premiums under s 162 if the requirements for deduction are otherwise satisfied.
HOLDINGS
 In Situations 1, 2 and 3, the arrangements do not constitute insurance for federal income tax purposes.
 In Situation 4, the arrangements constitute insurance for federal income tax purposes and the issuer qualifies as an insurance company. The amounts paid to the issuer may be deductible as insurance premiums under s 162 if the requirements for deduction are
otherwise satisfied.
DRAFTING INFORMATION
 The principal author of this revenue ruling is John E. Glover of the Office of the Associate Chief Counsel (Financial Institutions & Products). For further information regarding this revenue ruling, contact Mr. Glover at (202) 622- 3970 (not a toll-free call).
 Rev. Rul. 2005-40, 2005-27 I.R.B. 4
Revenue Ruling 2005-39
Rev. Rul. 2005-39
Rev. Rul. 2005-39, 2005-27 I.R.B. 1
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
        GOLDEN PARACHUTE PAYMENTS; TREATMENT OF SECTION 83(B) ELECTIONS
                            Released: June 16, 2005
                            Published: July 5, 2005
 Section 83.–Property Transferred in Connection With Performance of Services
 How are section 83(b) elections treated for purposes of measuring a change in ownership or control under section 280G and in testing whether an individual is a disqualified individual under section 280G?
26 CFR 1.280G-1: Golden parachute payments.
 Golden parachute payments; treatment of section 83(b) elections. This ruling discusses whether restricted stock for which a section 83(b) election has been made is treated as outstanding stock for purposes of determining whether there has been a change in ownership or control under section 280G of the Code and for determining the amount of stock held by shareholders in testing whether the shareholder is a disqualified individual under section 280G.
 Golden parachute payments; treatment of section 83(b) elections. This ruling discusses whether restricted stock for which a section 83(b) election has been made is treated as outstanding stock for purposes of determining whether there has been a change in ownership or control under section 280G of the Code and for determining the amount of stock held by shareholders in testing whether the shareholder is a disqualified individual under section 280G.
ISSUES
 1) In determining whether a corporation has experienced a change in ownership or control under s 280G(b)(2)(A)(i) of the Internal Revenue Code, are unvested shares of restricted stock for which an election under s 83(b) has been made treated as outstanding stock?
 2) In determining the amount of stock held by a shareholder for purposes of testing whether the shareholder is a disqualified individual under s1.280G-1, Q/A-17 of the Income Tax Regulations, are unvested shares of restricted stock for which an election under s 83(b) has been made treated as outstanding stock?
FACTS
 Corporation X and Corporation Y are unrelated publicly-held companies. Both Corporation X and Corporation Y maintain restricted stock plans and option plans for their respective employees. Immediately prior to the merger described below, without considering any outstanding options or restricted stock, the shareholders of Corporation X own stock with a total fair market value of $105x and the shareholders of Corporation Y own stock with a total fair market value of $105x.
 Employees of Corporation X hold restricted Corporation X stock that is not substantially vested but with respect to which elections under s 83(b) have been made. They also hold vested options to purchase vested stock of Corporation X. The fair market value of this Corporation X restricted stock and the Corporation X stock subject to these options is $3x.
 Employees of Corporation Y hold restricted Corporation Y stock that is not substantially vested but with respect to which elections under s 83(b) have been made. They also hold vested options to purchase vested stock of Corporation Y. The fair market value of this Corporation Y restricted stock and the Corporation Y stock subject to these options is $2x.
 Certain employees of Corporation X and Corporation Y also hold restricted stock that is not substantially vested with respect to which no election under s 83(b) has been made and vested options to purchase substantially nonvested stock.
 On February 20, 2005, Corporation X merges into Corporation Y, with Corporation Y as the surviving corporation. In the merger, the shareholders of Corporation X receive Corporation Y stock in exchange for their Corporation X stock. The holders of nonvested restricted Corporation X stock receive nonvested restricted Corporation Y stock in exchange for their nonvested restricted Corporation X stock. The holders of options to acquire Corporation X stock receive options to acquire Corporation Y stock in exchange for their options to acquire Corporation X stock. After the merger, Corporation Y stock (vested or nonvested, as applicable) will be issued on the exercise of all outstanding options.
LAW
 Section 83(a) provides that the excess of the fair market value of property transferred in connection with the performance of services over the amount (if any) paid for the property is included in the gross income of the person performing the services in the first taxable year in which the rights of the person having the beneficial interest in such property are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier.
 Section 83(b) permits any person performing services in connection with which property is transferred to elect to include in gross income for the taxable year in which the property is transferred the excess of its fair market value at the time of transfer (determined without regard to lapse restrictions) over the amount (if any) paid for the property.
 Section 1.83-1(a) provides that property transferred to an employee in connection with the performance of services by such employee is not taxable until the employee acquires a beneficial ownership interest in such property and it has become substantially vested (as defined in s 1.83-3(b)) in such employee. Until such property becomes substantially vested, the transferor is regarded as the owner of such property, and any income from such property received by the employee is included in the gross income of such employee as additional compensation for the taxable year in which such income is received.
 Section 1.83-3(b) provides that property is substantially nonvested if it is subject to a substantial risk of forfeiture and is nontransferable.
 Section 1.83-2(a) provides that the employee providing the services may elect to include in gross income under s 83(b), as compensation for services, the excess (if any) of the fair market value of the property at the time of transfer (determined without
regard to any lapse restrictions) over the amount (if any) paid for such property. If this election is made, the substantial vesting rules of s 83(a) and the regulations thereunder do not apply with respect to such property. Thus, property with respect to which this election is made is includible in gross income as of the time of transfer, and no compensation will be includible in gross income when such property becomes substantially vested.
 In Rev. Rul. 83-22, 1983-1 C.B. 17, an employee who received restricted stock made an election under s 83(b) and later earned dividends on the restricted stock. The ruling provides that the regulations under s 83(b) treat stock transferred to an employee in connection with the performance of services as substantially vested when the employee makes an election under s 83(b), and the employee is considered the owner of the stock. Accordingly, the ruling holds that a dividend paid to the employee who has made a s 83(b) election is not additional compensation to the employee, but retains its character as a dividend in the hands of the employee.
 Section 280G denies a deduction for any excess parachute payment. Section 4999 imposes a nondeductible 20-percent excise tax on the recipient of any excess parachute payment, within the meaning of s 280G(b).
 An excess parachute payment is defined in s 280G(b)(1) as an amount equal to the excess of any parachute payment over the portion of the disqualified individual’s base amount that is allocated to such payment.
 Section 280G(b)(2)(A) defines a parachute payment as any payment in the nature of compensation to (or for the benefit of) a disqualified individual if (i) such payment is contingent on a change in the ownership of a corporation, the effective control of a corporation, or the ownership of a substantial portion of the assets of a corporation (a change in ownership or control), and (ii) the aggregate present value of the payments in the nature of compensation which are contingent on such change equals or exceeds an amount equal to 3 times the base amount.
 Section 1.280G-1, Q/As-27 and 29, provides guidance concerning whether a corporation is considered to have undergone a change in ownership or control in a merger.
 Section 1.280G-1, Q/A-27(a), provides that a change in the ownership of a corporation occurs on the date that any one person, or more than one person acting as a group (as defined in Q/A-27(b)), acquires ownership of stock of the corporation that, together with stock held by such person or group, possesses more than 50 percent of the total fair market value or total voting power of the stock of such corporation. Section 1.280G-1, Q/A-27(b), provides that persons will not be considered to be acting as a group merely because they happen to purchase or own stock of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation.
 Section 1.280G-1, Q/A-27(c), provides that s 318(a) applies to determine stock ownership. Section 1.280G-1, Q/A-27(c), also provides that stock underlying a vested option is considered owned by an individual who holds the vested option (and the stock underlying an unvested option is not considered owned by an individual who holds the unvested option). For purposes of the preceding sentence, however, if the option is exercisable for stock that is not substantially vested (as defined in s 1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option.
 Section 1.280G-1, Q/A-29, provides that a change in the ownership of a substantial portion of a corporation’s assets occurs on the date that any one person, or more than one person acting as a group (as defined in Q/A-29(c)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the corporation that have a total gross fair market value equal to or more than one-third of the total gross fair market value of all of the assets of the corporation immediately prior to such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the corporation, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
 Section 1.280G-1, Q/A-29(b)(1), provides that there is no change in ownership or control under Q/A-29(a) when there is a transfer to an entity that is controlled by the shareholders of the transferring corporation immediately after the transfer, as provided in Q/A-29(b).
 Section 1.280G-1, Q/A-29(c), contains the same language as s 1.280G-1, Q/A-27(b), concerning when persons will be considered to be acting as a group. Section 1.280G-1, Q/A-29(d), refers to Q/A-27(c) for purposes of determining stock ownership.
 For purposes of determining when a payment in the nature of compensation under s 280G(b)(2)(A) has been made, s 1.280G-1, Q/A-12(b), provides that an election made by a disqualified individual under s 83(b) with respect to the transferred property does not apply. A payment in the nature of compensation for purposes of that determination is generally considered made (or to be made) when the property is transferred to, and becomes substantially vested in, such individual. The s 280G regulations, however, are silent for purposes of determining whether restricted stock subject to an election under s 83(b) is outstanding when determining whether there has been a change in ownership or control.
 The position in s 1.280G-1, Q&A-12(b) was adopted, in part, because the legislative history provides that all transfers of property are to be valued for purposes of the golden parachute rules. See H.R. Conf. Rep. No. 98-861, 98th Cong. 2d Sess. at 851 (1984), 1984-3 C.B. (Vol. 2) 851; Joint Committee on Taxation Staff, General Explanation of the Revenue Provisions of the Deficit Reduction Act of 1984, 98th Cong. 2d Sess. (1984) at 203. The vesting of payments contingent on a change in control frequently provides substantial benefits to an individual without regard to whether an election under s 83(b) has been made. This concern, however, is not present when determining whether a change in ownership or control has occurred.
ANALYSIS
 The regulations under s 280G have generally adopted objective rules to determine whether a change in ownership or control has occurred. Pursuant to s 1.280G-1, Q/A-27(c), vested stock underlying a vested option is considered owned by the individual who holds the vested option. Thus, the vested shares subject to vested options held by the former Corporation X employees and the Corporation Y employees are considered outstanding for purposes of determining whether a change in ownership or control occurred. However, the substantially nonvested shares underlying vested options held by the former Corporation X employees and the Corporation Y employees are not considered outstanding for purposes of determining whether a change in ownership or control occurred.
 In determining whether a change in ownership or control has occurred, s 1.280G-1, Q/A-27(c) generally implements an expansive rule for determining the shares treated as owned by an individual, treating, for example, shares subject to a vested option as
owned by the holder of the option. Accordingly, an employee should be considered the owner of unvested shares of restricted stock for which an election under s 83(b) has been made for purposes of s 1.280G-1, Q/A-27 because the regulations under s 83(b) treat stock transferred to an employee in connection with the performance of services as substantially vested when the employee makes an election under s 83(b), and the employee is considered the owner of the stock for that purpose. However, restricted stock with respect to which an election under s 83(b) has not been made is not considered outstanding for purposes of determining whether a change in ownership or control occurred.
 Consequently, the shareholders of Corporation X and Corporation Y, along with the employees holding vested options to receive vested stock and holding restricted stock that has been subject to an election under s 83(b), will be treated as acting as a group with respect to their acquisition of stock or assets. Applying the above-described rules, the Corporation X shareholders acquired ownership of Corporation Y stock ($108x) that has more than 50 percent of the total fair market value of the Corporation Y stock ($215x) outstanding immediately after the merger. Thus, there is a change in control of Corporation Y under s 1.280G-1, Q/A-27.
 Turning to Corporation X, all of the assets of Corporation X were transferred to Corporation Y in exchange for Corporation Y stock. Because more than 50 percent of the fair market value of the outstanding stock of Corporation Y is owned by the former shareholders of Corporation X (immediately after the exchange), the transfer of assets to Corporation Y is not treated as a change in ownership of a substantial portion of the assets of Corporation X under s 1.280G-1, Q/A-29(b)(1).
 Additionally, for purposes of determining the amount of stock owned by an individual under s1.280G-1, Q/A-17, the same rule as described above applies. Thus, an individual who holds restricted stock with respect to which an election under s 83(b) has been made is considered to hold the outstanding stock under s 1.280G-1, Q/A-17.
HOLDINGS
 1) In determining whether a corporation has experienced a change in ownership or control under s 280G(b)(2)(A)(i) of the Internal Revenue Code, unvested shares of restricted stock for which an election under s 83(b) has been made are treated as outstanding stock.
 2) In determining the amount of stock held by a shareholder for purposes of testing whether the shareholder is a disqualified individual under s1.280G-1, Q/A-17 of the Income Tax Regulations, unvested shares of restricted stock for which an election under s 83(b) has been made are treated as outstanding stock.
DRAFTING INFORMATION
 The principal authors of this revenue ruling are Erinn Madden and Jean Casey of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and Treasury Department participated in its development. For further information regarding this revenue ruling, contact Ms. Casey or Ms. Madden at (202) 622-6030 (not a toll-free call).
 Rev. Rul. 2005-39, 2005-27 I.R.B. 1
Revenue Ruling 2005-35
Rev. Rul. 2005-35
Rev. Rul. 2005-35, 2005-24 I.R.B. 1214
                      Internal Revenue Service (I.R.S.)
                                Revenue Ruling
                INTEREST RATES; UNDERPAYMENTS AND OVERPAYMENTS
                            Released: June 3, 2005
                           Published: June 13, 2005
 Section 6621.–Determination of Rate of Interest, 26 CFR 301.6621-1: Interest rate.
 Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2005, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.
 Interest rates; underpayments and overpayments. The rate of interest determined under section 6621 of the Code for the calendar quarter beginning July 1, 2005, will be 6 percent for overpayments (5 percent in the case of a corporation), 6 percent for underpayments, and 8 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 3.5 percent.
 Section 6621 of the Internal Revenue Code establishes the rates for interest on tax overpayments and tax underpayments. Under section 6621(a)(1), the overpayment rate is the sum of the federal short-term rate plus 3 percentage points (2 percentage points in the case of a corporation), except the rate for the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point for interest computations made after December 31, 1994. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points.
 Section 6621(c) provides that for purposes of interest payable under section 6601 on any large corporate underpayment, the underpayment rate under section 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See section 6621(c) and section 301.6621-3 of the Regulations on Procedure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621-3 are generally effective for periods after December 31, 1990.
 Section 6621(b)(1) provides that the Secretary will determine the federal short-term rate for the first month in each calendar quarter.
 Section 6621(b)(2)(A) provides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calendar quarter beginning after such month.
 Section 6621(b)(3) provides that the federal short-term rate for any month is the federal short-term rate determined during such month by the Secretary in accordance with s 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to the next highest full percent).
 Notice 88-59, 1988-1 C.B. 546, announced that, in determining the quarterly interest rates to be used for overpayments and underpayments of tax under section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 6622, is subject to daily compounding.
 Rounded to the nearest full percent, the federal short-term rate based on daily compounding determined during the month of April 2005 is 3 percent. Accordingly, an overpayment rate of 6 percent (5 percent in the case of a corporation) and an underpayment rate of 6 percent are established for the calendar quarter beginning July 1, 2005. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quarter beginning July 1, 2005, is 3.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning July 1, 2005, is 8 percent. These rates apply to amounts bearing interest during that calendar quarter.
 Interest factors for daily compound interest for annual rates of 3.5 percent, 5 percent, 6 percent, and 8 percent are published in Tables 12, 15, 17, and 21 of Rev. Proc. 95-17, 1995-1 C.B. 556, 566, 569, 571, and 575.
 Annual interest rates to be compounded daily pursuant to section 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling.
DRAFTING INFORMATION
 The principal author of this revenue ruling is Crystal Foster of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Foster at (202) 622- 7198 (not a toll-free call).
—————————————————————
                   TABLE OF INTEREST RATES
 PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
               OVERPAYMENTS AND UNDERPAYMENTS
                                              In 1995-1 C.B.
PERIODÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â RATEÂ Â Â Â Â Â Â DAILY RATE TABLE
Before Jul. 1, 1975Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6%Â Â Table 2, pg. 557
Jul. 1, 1975–Jan. 31, 1976Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9%Â Â Table 4, pg. 559
Feb. 1, 1976–Jan. 31, 1978Â Â Â Â Â Â Â Â Â Â Â Â Â Â 7%Â Â Table 3, pg. 558
Feb. 1, 1978–Jan. 31, 1980Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6%Â Â Table 2, pg. 557
Feb. 1, 1980–Jan. 31, 1982Â Â Â Â Â Â Â Â Â Â Â Â Â 12%Â Â Table 5, pg. 560
Feb. 1, 1982–Dec. 31, 1982Â Â Â Â Â Â Â Â Â Â Â Â Â 20%Â Â Table 6, pg. 560
Jan. 1, 1983–Jun. 30, 1983Â Â Â Â Â Â Â Â Â Â Â Â Â 16%Â Table 37, pg. 591
Jul. 1, 1983–Dec. 31, 1983Â Â Â Â Â Â Â Â Â Â Â Â Â 11%Â Table 27, pg. 581
Jan. 1, 1984–Jun. 30, 1984Â Â Â Â Â Â Â Â Â Â Â Â Â 11%Â Table 75, pg. 629
Jul. 1, 1984–Dec. 31, 1984Â Â Â Â Â Â Â Â Â Â Â Â Â 11%Â Table 75, pg. 629
Jan. 1, 1985–Jun. 30, 1985Â Â Â Â Â Â Â Â Â Â Â Â Â 13%Â Table 31, pg. 585
Jul. 1, 1985–Dec. 31, 1985Â Â Â Â Â Â Â Â Â Â Â Â Â 11%Â Table 27, pg. 581
Jan. 1, 1986–Jun. 30, 1986Â Â Â Â Â Â Â Â Â Â Â Â Â 10%Â Table 25, pg. 579
Jul. 1, 1986–Dec. 31, 1986Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9%Â Table 23, pg. 577
—————————————————————
—————————————————————-
                   TABLE OF INTEREST RATES
              FROM JAN. 1, 1987 — Dec. 31, 1998
                              OVERPAYMENTS     UNDERPAYMENTS
                            ———————————–
                              1995-1 C.B.       1995-1 C.B.
                            RATE TABLE PG  RATE TABLE  PG
Jan. 1, 1987–Mar. 31, 1987Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Apr. 1, 1987–Jun. 30, 1987Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Jul. 1, 1987–Sep. 30, 1987Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Oct. 1, 1987–Dec. 31, 1987Â Â Â 9%Â Â Â Â 23Â 577Â Â 10%Â Â Â Â 25Â Â 579
Jan. 1, 1988–Mar. 31, 1988Â Â 10%Â Â Â Â 73Â 627Â Â 11%Â Â Â Â 75Â Â 629
Apr. 1, 1988–Jun. 30, 1988Â Â Â 9%Â Â Â Â 71Â 625Â Â 10%Â Â Â Â 73Â Â 627
Jul. 1, 1988–Sep. 30, 1988Â Â Â 9%Â Â Â Â 71Â 625Â Â 10%Â Â Â Â 73Â Â 627
Oct. 1, 1988–Dec. 31, 1988Â Â 10%Â Â Â Â 73Â 627Â Â 11%Â Â Â Â 75Â Â 629
Jan. 1, 1989–Mar. 31, 1989Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Apr. 1, 1989–Jun. 30, 1989Â Â 11%Â Â Â Â 27Â 581Â Â 12%Â Â Â Â 29Â Â 583
Jul. 1, 1989–Sep. 30, 1989Â Â 11%Â Â Â Â 27Â 581Â Â 12%Â Â Â Â 29Â Â 583
Oct. 1, 1989–Dec. 31, 1989Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Jan. 1, 1990–Mar. 31, 1990Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Apr. 1, 1990–Jun. 30, 1990Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Jul. 1, 1990–Sep. 30, 1990Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Oct. 1, 1990–Dec. 31, 1990Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Jan. 1, 1991–Mar. 31, 1991Â Â 10%Â Â Â Â 25Â 579Â Â 11%Â Â Â Â 27Â Â 581
Apr. 1, 1991–Jun. 30, 1991Â Â Â 9%Â Â Â Â 23Â 577Â Â 10%Â Â Â Â 25Â Â 579
Jul. 1, 1991–Sep. 30, 1991Â Â Â 9%Â Â Â Â 23Â 577Â Â 10%Â Â Â Â 25Â Â 579
Oct. 1, 1991–Dec. 31, 1991Â Â Â 9%Â Â Â Â 23Â 577Â Â 10%Â Â Â Â 25Â Â 579
Jan. 1, 1992–Mar. 31, 1992Â Â Â 8%Â Â Â Â 69Â 623Â Â Â 9%Â Â Â Â 71Â Â 625
Apr. 1, 1992–Jun. 30, 1992Â Â Â 7%Â Â Â Â 67Â 621Â Â Â 8%Â Â Â Â 69Â Â 623
Jul. 1, 1992–Sep. 30, 1992Â Â Â 7%Â Â Â Â 67Â 621Â Â Â 8%Â Â Â Â 69Â Â 623
Oct. 1, 1992–Dec. 31, 1992Â Â Â 6%Â Â Â Â 65Â 619Â Â Â 7%Â Â Â Â 67Â Â 621
Jan. 1, 1993–Mar. 31, 1993Â Â Â 6%Â Â Â Â 17Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Apr. 1, 1993–Jun. 30, 1993Â Â Â 6%Â Â Â Â 17Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Jul. 1, 1993–Sep. 30, 1993Â Â Â 6%Â Â Â Â 17Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Oct. 1, 1993–Dec. 31, 1993Â Â Â 6%Â Â Â Â 17Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Jan. 1, 1994–Mar. 31, 1994Â Â Â 6%Â Â Â Â 17 Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Apr. 1, 1994–Jun. 30, 1994Â Â Â 6%Â Â Â Â 17Â 571Â Â Â 7%Â Â Â Â 19Â Â 573
Jul. 1, 1994–Sep. 30, 1994Â Â Â 7%Â Â Â Â 19Â 573Â Â Â 8%Â Â Â Â 21Â Â 575
Oct. 1, 1994–Dec. 31, 1994Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Jan. 1, 1995–Mar. 31, 1995Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Apr. 1, 1995–Jun. 30, 1995Â Â Â 9%Â Â Â Â 23Â 577Â Â 10%Â Â Â Â 25Â Â 579
Jul. 1, 1995–Sep. 30, 1995Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Oct. 1, 1995–Dec. 31, 1995Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Jan. 1, 1996–Mar. 31, 1996Â Â Â 8%Â Â Â Â 69Â 623Â Â Â 9%Â Â Â Â 71Â Â 625
Apr. 1, 1996–Jun. 30, 1996Â Â Â 7%Â Â Â Â 67Â 621Â Â Â 8%Â Â Â Â 69Â Â 623
Jul. 1, 1996–Sep. 30, 1996Â Â Â 8%Â Â Â Â 69Â 623Â Â Â 9%Â Â Â Â 71Â Â 625
Oct. 1, 1996–Dec. 31, 1996Â Â Â 8%Â Â Â Â 69Â 623Â Â Â 9%Â Â Â Â 71Â Â 625
Jan. 1, 1997–Mar. 31, 1997Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Apr. 1, 1997–Jun. 30, 1997Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Jul. 1, 1997–Sep. 30, 1997Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Oct. 1, 1997–Dec. 31, 1997Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Jan. 1, 1998–Mar. 31, 1998Â Â Â 8%Â Â Â Â 21Â 575Â Â Â 9%Â Â Â Â 23Â Â 577
Apr. 1, 1998–Jun. 30, 1998Â Â Â 7%Â Â Â Â 19Â 573Â Â Â 8%Â Â Â Â 21Â Â 575
Jul. 1, 1998–Sep. 30, 1998Â Â Â 7%Â Â Â Â 19Â 573Â Â Â 8%Â Â Â Â 21Â Â 575
Oct. 1, 1998–Dec. 31, 1998Â Â Â 7%Â Â Â Â 19Â 573Â Â Â 8%Â Â Â Â 21Â Â 575
—————————————————————-
—————————————————
             TABLE OF INTEREST RATES
         FROM JANUARY 1, 1999 — PRESENT
   NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
                                  1995-1 C.B.
                            RATE    TABLE    PG
Jan. 1, 1999–Mar. 31, 1999Â Â 7%Â Â Â Â Â Â 19Â Â Â Â Â Â 573
Apr. 1, 1999–Jun. 30, 1999Â Â 8%Â Â Â Â Â Â 21Â Â Â Â Â Â 575
Jul. 1, 1999–Sep. 30, 1999Â Â 8%Â Â Â Â Â Â 21Â Â Â Â Â Â 575
Oct. 1, 1999–Dec. 31, 1999Â Â 8%Â Â Â Â Â Â 21Â Â Â Â Â Â 575
Jan. 1, 2000–Mar. 31, 2000Â Â 8%Â Â Â Â Â Â 69Â Â Â Â Â Â 623
Apr. 1, 2000–Jun. 30, 2000Â Â 9%Â Â Â Â Â Â 71Â Â Â Â Â Â 625
Jul. 1, 2000–Sep. 30, 2000Â Â 9%Â Â Â Â Â Â 71Â Â Â Â Â Â 625
Oct. 1, 2000–Dec. 31, 2000Â Â 9%Â Â Â Â Â Â 71Â Â Â Â Â Â 625
Jan. 1, 2001–Mar. 31, 2001Â Â 9%Â Â Â Â Â Â 23Â Â Â Â Â Â 577
Apr. 1, 2001–Jun. 30, 2001Â Â 8%Â Â Â Â Â Â 21Â Â Â Â Â Â 575
Jul. 1, 2001–Sep. 30, 2001Â Â 7%Â Â Â Â Â Â 19Â Â Â Â Â Â 573
Oct. 1, 2001–Dec. 31, 2001Â Â 7%Â Â Â Â Â Â 19Â Â Â Â Â Â 573
Jan. 1, 2002–Mar. 31, 2002Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
Apr. 1, 2002–Jun. 30, 2002Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
Jul. 1, 2002–Sep. 30, 2002Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
Oct. 1, 2002–Dec. 31, 2002Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
Jan. 1, 2003–Mar. 31, 2003Â Â 5%Â Â Â Â Â Â 15Â Â Â Â Â Â 569
Apr. 1, 2003–Jun. 30, 2003Â Â 5%Â Â Â Â Â Â 15Â Â Â Â Â Â 569
Jul. 1, 2003–Sep. 30, 2003Â Â 5%Â Â Â Â Â Â 15Â Â Â Â Â Â 569
Oct. 1, 2003–Dec. 31, 2003Â Â 4%Â Â Â Â Â Â 13Â Â Â Â Â Â 567
Jan. 1, 2004–Mar. 31, 2004Â Â 4%Â Â Â Â Â Â 61Â Â Â Â Â Â 615
Apr. 1, 2004–Jun. 30, 2004Â Â 5%Â Â Â Â Â Â 63Â Â Â Â Â Â 617
Jul. 1, 2004–Sep. 30, 2004Â Â 4%Â Â Â Â Â Â 61Â Â Â Â Â Â 615
Oct. 1, 2004–Dec. 31, 2004Â Â 5%Â Â Â Â Â Â 63Â Â Â Â Â Â 617
Jan. 1, 2005–Mar. 31, 2005Â Â 5%Â Â Â Â Â Â 15Â Â Â Â Â Â 569
Apr. 1, 2005–Jun. 30, 2005Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
Jul. 1, 2005–Sep. 30, 2005Â Â 6%Â Â Â Â Â Â 17Â Â Â Â Â Â 571
—————————————————
—————————————————————-
                   TABLE OF INTEREST RATES
               FROM JANUARY 1, 1999 — PRESENT
           CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
                              OVERPAYMENTS     UNDERPAYMENTS
                            ———————————–
                              1995-1 C.B.       1995-1 C.B.
                            RATE TABLE PG  RATE TABLE  PG
Jan. 1, 1999–Mar. 31, 1999Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Apr. 1, 1999–Jun. 30, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 1999–Sep. 30, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Oct. 1, 1999–Dec. 31, 1999Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jan. 1, 2000–Mar. 31, 2000Â Â 7%Â Â Â 67Â Â Â 621Â Â 8%Â Â Â 69Â Â Â 623
Apr. 1, 2000–Jun. 30, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Jul. 1, 2000–Sep. 30, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Oct. 1, 2000–Dec. 31, 2000Â Â 8%Â Â Â 69Â Â Â 623Â Â 9%Â Â Â 71Â Â Â 625
Jan. 1, 2001–Mar. 31, 2001Â Â 8%Â Â Â 21Â Â Â 575Â Â 9%Â Â Â 23Â Â Â 577
Apr. 1, 2001–Jun. 30, 2001Â Â 7%Â Â Â 19Â Â Â 573Â Â 8%Â Â Â 21Â Â Â 575
Jul. 1, 2001–Sep. 30, 2001Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Oct. 1, 2001–Dec. 31, 2001Â Â 6%Â Â Â 17Â Â Â 571Â Â 7%Â Â Â 19Â Â Â 573
Jan. 1, 2002–Mar. 31, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Apr. 1, 2002–Jun. 30, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Jul. 1, 2002–Sep. 30, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Oct. 1, 2002–Dec. 31, 2002Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Jan. 1, 2003–Mar. 31, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Apr. 1, 2003–Jun. 30, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Jul. 1, 2003–Sep. 30, 2003Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Oct. 1, 2003–Dec. 31, 2003Â Â 3%Â Â Â 11Â Â Â 565Â Â 4%Â Â Â 13Â Â Â 567
Jan. 1, 2004–Mar. 31, 2004Â Â 3%Â Â Â 59Â Â Â 613Â Â 4%Â Â Â 61Â Â Â 615
Apr. 1, 2004–Jun. 30, 2004Â Â 4%Â Â Â 61Â Â Â 615Â Â 5%Â Â Â 63Â Â Â 617
Jul. 1, 2004–Sep. 30, 2004Â Â 3%Â Â Â 59Â Â Â 613Â Â 4%Â Â Â 61Â Â Â 615
Oct. 1, 2004–Dec. 31, 2004Â Â 4%Â Â Â 61Â Â Â 615Â Â 5%Â Â Â 63Â Â Â 617
Jan. 1, 2005–Mar. 31, 2005Â Â 4%Â Â Â 13Â Â Â 567Â Â 5%Â Â Â 15Â Â Â 569
Apr. 1, 2005–Jun. 30, 2005Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
Jul. 1, 2005–Sep. 30, 2005Â Â 5%Â Â Â 15Â Â Â 569Â Â 6%Â Â Â 17Â Â Â 571
—————————————————————-
—————————————————————
  TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS
               FROM JANUARY 1, 1991 — PRESENT
                                        1995-1 C.B.
                               RATE       TABLE       PG
Jan. 1, 1991–Mar. 31, 1991Â Â Â Â Â Â Â Â 13%Â Â Â Â Â Â Â Â Â Â 31Â Â Â Â Â Â Â 585
Apr. 1, 1991–Jun. 30, 1991Â Â Â Â Â Â Â Â 12%Â Â Â Â Â Â Â Â Â Â 29Â Â Â Â Â Â Â 583
Jul. 1, 1991–Sep. 30, 1991Â Â Â Â Â Â Â Â 12%Â Â Â Â Â Â Â Â Â Â 29Â Â Â Â Â Â Â 583
Oct. 1, 1991–Dec. 31, 1991Â Â Â Â Â Â Â Â 12%Â Â Â Â Â Â Â Â Â Â 29Â Â Â Â Â Â Â 583
Jan. 1, 1992–Mar. 31, 1992Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Apr. 1, 1992–Jun. 30, 1992Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 73Â Â Â Â Â Â Â 627
Jul. 1, 1992–Sep. 30, 1992Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 73Â Â Â Â Â Â Â 627
Oct. 1, 1992–Dec. 31, 1992Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 71Â Â Â Â Â Â Â 625
Jan. 1, 1993–Mar. 31, 1993Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Apr. 1, 1993–Jun. 30, 1993Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Jul. 1, 1993–Sep. 30, 1993Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Oct. 1, 1993–Dec. 31, 1993Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Jan. 1, 1994–Mar. 31, 1994Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Apr. 1, 1994–Jun. 30, 1994Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Jul. 1, 1994–Sep. 30, 1994Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Oct. 1, 1994–Dec. 31, 1994Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Jan. 1, 1995–Mar. 31, 1995Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Apr. 1, 1995–Jun. 30, 1995Â Â Â Â Â Â Â Â 12%Â Â Â Â Â Â Â Â Â Â 29Â Â Â Â Â Â Â 583
Jul. 1, 1995–Sep. 30, 1995Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Oct. 1, 1995–Dec. 31, 1995Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Jan. 1, 1996–Mar. 31, 1996Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Apr. 1, 1996–Jun. 30, 1996Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 73Â Â Â Â Â Â Â 627
Jul. 1, 1996–Sep. 30, 1996Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Oct. 1, 1996–Dec. 31, 1996Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Jan. 1, 1997–Mar. 31, 1997Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Apr. 1, 1997–Jun. 30, 1997Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Jul. 1, 1997–Sep. 30, 1997Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27 Â Â Â Â Â Â Â 581
Oct. 1, 1997–Dec. 31, 1997Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Jan. 1, 1998–Mar. 31, 1998Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Apr. 1, 1998–Jun. 30, 1998Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Jul. 1, 1998–Sep. 30, 1998Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Oct. 1, 1998–Dec. 31, 1998Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Jan. 1, 1999–Mar. 31, 1999Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Apr. 1, 1999–Jun. 30, 1999Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Jul. 1, 1999–Sep. 30, 1999Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Oct. 1, 1999–Dec. 31, 1999Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Jan. 1, 2000–Mar. 31, 2000Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 73Â Â Â Â Â Â Â 627
Apr. 1, 2000–Jun. 30, 2000Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Jul. 1, 2000–Sep. 30, 2000Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Oct. 1, 2000–Dec. 31, 2000Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 75Â Â Â Â Â Â Â 629
Jan. 1, 2001–Mar. 31, 2001Â Â Â Â Â Â Â Â 11%Â Â Â Â Â Â Â Â Â Â 27Â Â Â Â Â Â Â 581
Apr. 1, 2001–Jun. 30, 2001Â Â Â Â Â Â Â Â 10%Â Â Â Â Â Â Â Â Â Â 25Â Â Â Â Â Â Â 579
Jul. 1, 2001–Sep. 30, 2001Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Oct. 1, 2001–Dec. 31, 2001Â Â Â Â Â Â Â Â Â 9%Â Â Â Â Â Â Â Â Â Â 23Â Â Â Â Â Â Â 577
Jan. 1, 2002–Mar. 31, 2002Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
Apr. 1, 2002–Jun. 30, 2002Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
Jul. 1, 2002–Sep. 30, 2002Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
Oct. 1, 2002–Dec. 30, 2002Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
Jan. 1, 2003–Mar. 31, 2003Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 19Â Â Â Â Â Â Â 573
Apr. 1, 2003–Jun. 30, 2003Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 19Â Â Â Â Â Â Â 573
Jul. 1, 2003–Sep. 30, 2003Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 19Â Â Â Â Â Â Â 573
Oct. 1, 2003–Dec. 31, 2003Â Â Â Â Â Â Â Â Â 6%Â Â Â Â Â Â Â Â Â Â 17Â Â Â Â Â Â Â 571
Jan. 1, 2004–Mar. 31, 2004Â Â Â Â Â Â Â Â Â 6%Â Â Â Â Â Â Â Â Â Â 65Â Â Â Â Â Â Â 619
Apr. 1, 2004–Jun. 30, 2004Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 67Â Â Â Â Â Â Â 621
Jul. 1, 2004–Sep. 30, 2004Â Â Â Â Â Â Â Â Â 6%Â Â Â Â Â Â Â Â Â Â 65Â Â Â Â Â Â Â 619
Oct. 1, 2004–Dec. 31, 2004Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 67Â Â Â Â Â Â Â 621
Jan. 1, 2005–Mar. 31, 2005Â Â Â Â Â Â Â Â Â 7%Â Â Â Â Â Â Â Â Â Â 19Â Â Â Â Â Â Â 573
Apr. 1, 2005–Jun. 30, 2005Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
Jul. 1, 2005–Sep. 30, 2005Â Â Â Â Â Â Â Â Â 8%Â Â Â Â Â Â Â Â Â Â 21Â Â Â Â Â Â Â 575
—————————————————————
————————————————————————–
  TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000
                    FROM JANUARY 1, 1995 — PRESENT
                                             1995-1 C.B.
                                 RATE          TABLE           PG
Jan. 1, 1995–Mar. 31, 1995Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Apr. 1, 1995–Jun. 30, 1995Â Â Â Â Â Â 7.5%Â Â Â Â Â Â Â Â Â Â Â Â 20Â Â Â Â Â Â Â Â Â Â Â Â 574
Jul. 1, 1995–Sep. 30, 1995Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Oct. 1, 1995–Dec. 31, 1995Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Jan. 1, 1996–Mar. 31, 1996Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Apr. 1, 1996–Jun. 30, 1996Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 64Â Â Â Â Â Â Â Â Â Â Â Â 618
Jul. 1, 1996–Sep. 30, 1996Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Oct. 1, 1996–Dec. 31, 1996Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Jan. 1, 1997–Mar. 31, 1997Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Apr. 1, 1997–Jun. 30, 1997Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Jul. 1, 1997–Sep. 30, 1997Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Oct. 1, 1997–Dec. 31, 1997Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Jan. 1, 1998–Mar. 31, 1998Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Apr. 1, 1998–Jun. 30, 1998Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Jul. 1, 1998–Sep. 30, 1998Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Oct. 1, 1998–Dec. 31, 1998Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Jan. 1, 1999–Mar. 31, 1999Â Â Â Â Â Â 4.5%Â Â Â Â Â Â Â Â Â Â Â Â 14Â Â Â Â Â Â Â Â Â Â Â Â 568
Apr. 1, 1999–Jun. 30, 1999Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Jul. 1, 1999–Sep. 30, 1999Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Oct. 1, 1999–Dec. 31, 1999Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Jan. 1, 2000–Mar. 31, 2000Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 64Â Â Â Â Â Â Â Â Â Â Â Â 618
Apr. 1, 2000–Jun. 30, 2000Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Jul. 1, 2000–Sep. 30, 2000Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Oct. 1, 2000–Dec. 31, 2000Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 66Â Â Â Â Â Â Â Â Â Â Â Â 620
Jan. 1, 2001–Mar. 31, 2001Â Â Â Â Â Â 6.5%Â Â Â Â Â Â Â Â Â Â Â Â 18Â Â Â Â Â Â Â Â Â Â Â Â 572
Apr. 1, 2001–Jun. 30, 2001Â Â Â Â Â Â 5.5%Â Â Â Â Â Â Â Â Â Â Â Â 16Â Â Â Â Â Â Â Â Â Â Â Â 570
Jul. 1, 2001–Sep. 30, 2001Â Â Â Â Â Â 4.5%Â Â Â Â Â Â Â Â Â Â Â Â 14Â Â Â Â Â Â Â Â Â Â Â Â 568
Oct. 1, 2001–Dec. 31, 2001Â Â Â Â Â Â 4.5%Â Â Â Â Â Â Â Â Â Â Â Â 14Â Â Â Â Â Â Â Â Â Â Â Â 568
Jan. 1, 2002–Mar. 31, 2002Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
Apr. 1, 2002–Jun. 30, 2002Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
Jul. 1, 2002–Sep. 30, 2002Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
Oct. 1, 2002–Dec. 31, 2002Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
Jan. 1, 2003–Mar. 31, 2003Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 10Â Â Â Â Â Â Â Â Â Â Â Â 564
Apr. 1, 2003–Jun. 30, 2003Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 10Â Â Â Â Â Â Â Â Â Â Â Â 564
Jul. 1, 2003–Sep. 30, 2003Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 10Â Â Â Â Â Â Â Â Â Â Â Â 564
Oct. 1, 2003–Dec. 31, 2003Â Â Â Â Â Â 1.5%Â Â Â Â Â Â Â Â Â Â Â Â 8Â Â Â Â Â Â Â Â Â Â Â Â Â 562
Jan. 1, 2004–Mar. 31, 2004Â Â Â Â Â Â 1.5%Â Â Â Â Â Â Â Â Â Â Â Â 56Â Â Â Â Â Â Â Â Â Â Â Â 610
Apr. 1, 2004–Jun. 30, 2004Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 58Â Â Â Â Â Â Â Â Â Â Â Â 612
Jul. 1, 2004–Sep. 30, 2004Â Â Â Â Â Â 1.5%Â Â Â Â Â Â Â Â Â Â Â Â 56Â Â Â Â Â Â Â Â Â Â Â Â 610
Oct. 1, 2004–Dec. 31, 2004Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 58Â Â Â Â Â Â Â Â Â Â Â Â 612
Jan. 1, 2005–Mar. 31, 2005Â Â Â Â Â Â 2.5%Â Â Â Â Â Â Â Â Â Â Â Â 10Â Â Â Â Â Â Â Â Â Â Â Â 564
Apr. 1, 2005–Jun. 30, 2005Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
Jul. 1, 2005–Sep. 30, 2005Â Â Â Â Â Â 3.5%Â Â Â Â Â Â Â Â Â Â Â Â 12Â Â Â Â Â Â Â Â Â Â Â Â 566
—————————————————————————-
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