Internal Revenue Bulletin — Rulings & Guidance
Rev. Rul. 2022-12 — 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 July 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. Finally, Table 6 contains the blended annual rate for 2022 for purposes of section 7872.
REV. RUL. 2022-12 TABLE 1 Applicable Federal Rates (AFR) for July 2022 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term | ||||
| AFR | 2.37% | 2.36% | 2.35% | 2.35% |
| 110% AFR | 2.62% | 2.60% | 2.59% | 2.59% |
| 120% AFR | 2.85% | 2.83% | 2.82% | 2.81% |
| 130% AFR | 3.09% | 3.07% | 3.06% | 3.05% |
| Mid-term | ||||
| AFR | 2.99% | 2.97% | 2.96% | 2.95% |
| 110% AFR | 3.30% | 3.27% | 3.26% | 3.25% |
| 120% AFR | 3.59% | 3.56% | 3.54% | 3.53% |
| 130% AFR | 3.90% | 3.86% | 3.84% | 3.83% |
| 150% AFR | 4.51% | 4.46% | 4.44% | 4.42% |
| 175% AFR | 5.27% | 5.20% | 5.17% | 5.14% |
| Long-term | ||||
| AFR | 3.22% | 3.19% | 3.18% | 3.17% |
| 110% AFR | 3.54% | 3.51% | 3.49% | 3.48% |
| 120% AFR | 3.87% | 3.83% | 3.81% | 3.80% |
| 130% AFR | 4.19% | 4.15% | 4.13% | 4.11% |
REV. RUL. 2022-12 TABLE 2 Adjusted AFR for July 2022 Period for Compounding
| Annual | Semiannual | Quarterly | Monthly | |
|---|---|---|---|---|
| Short-term adjusted AFR | 1.80% | 1.79% | 1.79% | 1.78% |
| Mid-term adjusted AFR | 2.27% | 2.26% | 2.25% | 2.25% |
| Long-term adjusted AFR | 2.43% | 2.42% | 2.41% | 2.41% |
REV. RUL. 2022-12 TABLE 3 Rates Under Section 382 for July 2022
| Adjusted federal long-term rate for the current month | 2.43% |
| 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.) | 2.43% |
REV. RUL. 2022-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 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 | 7.72% |
| Appropriate percentage for the 30% present value low-income housing credit | 3.31% |
Section 42.—Low-Income Housing Credit
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1.
Section 280G.—Golden Parachute Payments
The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12 page 1.
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 2022. See Rev. Rul. 2022-12, page 1.
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 July 2022. See Rev. Rul. 2022-12, page 1.
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 July 2022. See Rev. Rul. 2022-12, page 1.
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 July 2022. See Rev. Rul. 2022-12, page 1.
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 July 2022. See Rev. Rul. 2022-12, page 1.
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 2022. See Rev. Rul. 2022-12, page 1.
Section 7520.—Valuation Tables
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1.
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 July 2022. See Rev. Rul. 2022-12, page 1.
Source: official text