Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2022-1 — Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate.
This revenue ruling provides various prescribed rates for federal income tax purposes for January 2022 (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%. 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. Table 6 contains the deemed rate of return for transfers made during calendar year 2022 to pooled income funds described in section 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer was made. Finally, Table 7 contains the average of the applicable federal mid-term rates (based on annual compounding) for the 60-month periods ending December 31, 2019, December 31, 2020, and December 31, 2021, for purposes of section 7702(f)(11).
REV. RUL. 2022-1 TABLE 1 Applicable Federal Rates (AFR) for January 2022 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 0.44% | 0.44% | 0.44% | 0.44% |
| 110% AFR | 0.48% | 0.48% | 0.48% | 0.48% |
| 120% AFR | 0.53% | 0.53% | 0.53% | 0.53% |
| 130% AFR | 0.57% | 0.57% | 0.57% | 0.57% |
| Mid-term | ||||
| AFR | 1.30% | 1.30% | 1.30% | 1.30% |
| 110% AFR | 1.44% | 1.43% | 1.43% | 1.43% |
| 120% AFR | 1.57% | 1.56% | 1.56% | 1.55% |
| 130% AFR | 1.70% | 1.69% | 1.69% | 1.68% |
| 150% AFR | 1.96% | 1.95% | 1.95% | 1.94% |
| 175% AFR | 2.29% | 2.28% | 2.27% | 2.27% |
| Long-term | ||||
| AFR | 1.82% | 1.81% | 1.81% | 1.80% |
| 110% AFR | 2.00% | 1.99% | 1.99% | 1.98% |
| 120% AFR | 2.18% | 2.17% | 2.16% | 2.16% |
| 130% AFR | 2.36% | 2.35% | 2.34% | 2.34% |
REV. RUL. 2022-1 TABLE 2 Adjusted AFR for January 2022 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 0.33% | 0.33% | 0.33% | 0.33% |
| Mid-term adjusted AFR | 0.99% | 0.99% | 0.99% | 0.99% |
| Long-term adjusted AFR | 1.37% | 1.37% | 1.37% | 1.37% |
REV. RUL. 2022-1 TABLE 3 Rates Under Section 382 for January 2022
| Adjusted federal long-term rate for the current month | 1.37% |
| 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.) | 1.45% |
REV. RUL. 2022-1 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for January 2022
| 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 | 7.36% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.15% |
REV. RUL. 2022-1 TABLE 5 Rate Under Section 7520 for January 2022
| 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 | 1.6% |
REV. RUL. 2022-1 TABLE 6 Deemed Rate for Transfers to Pooled Income Funds During 2022
| Deemed rate of return for transfers during 2022 to pooled income funds that have been in existence for less than 3 taxable years | 1.6% |
REV. RUL. 2022-1 TABLE 7 Average of the Applicable Federal Mid-Term Rates for 2019, 2020, 2021
| For purposes of section 7702(f)(11), the average of the applicable federal mid-term rates (based on annual compounding) for the 60-month periods ending December 31, 2019, December 31, 2020, and December 31, 2021, are: | |
| 60-month period ending December 31, 2019 | 2.00% rounded to 2% |
| 60-month period ending December 31, 2020 | 1.82% rounded to 2% |
| 60-month period ending December 31, 2021 | 1.72% rounded to 2% |
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
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 January 2022. See Rev. Rul. 2022-1, page 301.
Section 467.—Certain Payments for the Use of Property or Services
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs
The applicable federal short-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Section 482.—Allocation of Income and Deductions Among Taxpayers
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Section 483.—Interest on Certain Deferred Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
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 January 2022. See Rev. Rul. 2022-1, page 301.
Section 7520.—Valuation Tables
The applicable federal mid-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Section 7872.—Treatment of Loans With Below-Market Interest Rates
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 2022. See Rev. Rul. 2022-1, page 301.
Source: official text