Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2020-6 — Federal rates; adjusted federal rates; adjusted federal long-term rate, the long-term exempt rate, and the blended annual rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for March 2020 (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)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, 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.
REV. RUL. 2020-6 TABLE 1 Applicable Federal Rates (AFR) for March 2020 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 1.50% | 1.49% | 1.49% | 1.49% |
| 110% AFR | 1.65% | 1.64% | 1.64% | 1.63% |
| 120% AFR | 1.80% | 1.79% | 1.79% | 1.78% |
| 130% AFR | 1.95% | 1.94% | 1.94% | 1.93% |
| Mid-term | ||||
| AFR | 1.53% | 1.52% | 1.52% | 1.52% |
| 110% AFR | 1.68% | 1.67% | 1.67% | 1.66% |
| 120% AFR | 1.83% | 1.82% | 1.82% | 1.81% |
| 130% AFR | 1.99% | 1.98% | 1.98% | 1.97% |
| 150% AFR | 2.29% | 2.28% | 2.27% | 2.27% |
| 175% AFR | 2.68% | 2.66% | 2.65% | 2.65% |
| Long-term | ||||
| AFR | 1.93% | 1.92% | 1.92% | 1.91% |
| 110% AFR | 2.12% | 2.11% | 2.10% | 2.10% |
| 120% AFR | 2.31% | 2.30% | 2.29% | 2.29% |
| 130% AFR | 2.52% | 2.50% | 2.49% | 2.49% |
REV. RUL. 2020-6 TABLE 2 Adjusted AFR for March 2020 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 1.13% | 1.13% | 1.13% | 1.13% |
| Mid-term adjusted AFR | 1.15% | 1.15% | 1.15% | 1.15% |
| Long-term adjusted AFR | 1.47% | 1.46% | 1.46% | 1.46% |
REV. RUL. 2020-6 TABLE 3 Rates Under Section 382 for March 2020
| Adjusted federal long-term rate for the current month | 1.47% |
| Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) | 1.63% |
REV. RUL. 2020-6 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for March 2020
| Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. | |
| Appropriate percentage for the 70% present value low-income housing credit | 7.40% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.17% |
REV. RUL. 2020-6 TABLE 5 Rate Under Section 7520 for March 2020
| Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest | 1.8% |
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The adjusted applicable federal long-term rate is set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal short-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
The applicable federal mid-term rates are set forth for the month of March 2020. See Rev. Rul. 2020-6, page 490.
Source: official text