Internal Revenue Bulletin — Rulings & Guidance

Rev. Rul. 2022-14 — 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 August 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%. 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. 2022-14 TABLE 1 Applicable Federal Rates (AFR) for August 2022 Period for Compounding

Annual Semiannual Quarterly Monthly
Short-term
AFR 2.88% 2.86% 2.85% 2.84%
110% AFR 3.17% 3.15% 3.14% 3.13%
120% AFR 3.46% 3.43% 3.42% 3.41%
130% AFR 3.75% 3.72% 3.70% 3.69%
Mid-term
AFR 3.15% 3.13% 3.12% 3.11%
110% AFR 3.47% 3.44% 3.43% 3.42%
120% AFR 3.80% 3.76% 3.74% 3.73%
130% AFR 4.11% 4.07% 4.05% 4.04%
150% AFR 4.76% 4.70% 4.67% 4.65%
175% AFR 5.56% 5.48% 5.44% 5.42%
Long-term
AFR 3.35% 3.32% 3.31% 3.30%
110% AFR 3.68% 3.65% 3.63% 3.62%
120% AFR 4.02% 3.98% 3.96% 3.95%
130% AFR 4.37% 4.32% 4.30% 4.28%
 

REV. RUL. 2022-14 TABLE 2 Adjusted AFR for August 2022 Period for Compounding

Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 2.18% 2.17% 2.16% 2.16%
Mid-term adjusted AFR 2.39% 2.38% 2.37% 2.37%
Long-term adjusted AFR 2.54% 2.52% 2.51% 2.51%
 

REV. RUL. 2022-14 TABLE 3 Rates Under Section 382 for August 2022

Adjusted federal long-term rate for the current month 2.54%
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.) 2.54%
 

REV. RUL. 2022-14 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for August 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 7.75%
Appropriate percentage for the 30% present value low-income housing credit 3.32%
 

REV. RUL. 2022-14 TABLE 5 Rate Under Section 7520 for August 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 3.80%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of August 2022. See Rev. Rul. 2022-14, page 110.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of August 2022. See Rev. Rul. 2022-14 page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

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 August 2022. See Rev. Rul. 2022-14, page 110.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of August 2022. See Rev. Rul. 2022-14, page 110.

Section 7872.—Treatment of Loans With Below-Market Interest Rates

The applicable federal mid-term rates are set forth for the month of August 2022. See Rev. Rul. 2022-14, page 110.

Source: official text