Internal Revenue Bulletin — Rulings & Guidance

Rev. Rul. 2022-20 — 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 November 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. 2022-20 TABLE 1 Applicable Federal Rates (AFR) for November 2022 Period for Compounding

Annual Semiannual Quarterly Monthly
Short-term
AFR 4.10% 4.06% 4.04% 4.03%
110% AFR 4.52% 4.47% 4.45% 4.43%
120% AFR 4.93% 4.87% 4.84% 4.82%
130% AFR 5.35% 5.28% 5.25% 5.22%
Mid-term
AFR 3.97% 3.93% 3.91% 3.90%
110% AFR 4.37% 4.32% 4.30% 4.28%
120% AFR 4.78% 4.72% 4.69% 4.67%
130% AFR 5.18% 5.11% 5.08% 5.06%
150% AFR 5.99% 5.90% 5.86% 5.83%
175% AFR 7.00% 6.88% 6.82% 6.78%
Long-term
AFR 3.92% 3.88% 3.86% 3.85%
110% AFR 4.32% 4.27% 4.25% 4.23%
120% AFR 4.71% 4.66% 4.63% 4.62%
130% AFR 5.10% 5.04% 5.01% 4.99%
 

REV. RUL. 2022-20 TABLE 2 Adjusted AFR for November 2022 Period for Compounding

Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 3.10% 3.08% 3.07% 3.06%
Mid-term adjusted AFR 3.00% 2.98% 2.97% 2.96%
Long-term adjusted AFR 2.97% 2.95% 2.94% 2.93%
 

REV. RUL. 2022-20 TABLE 3 Rates Under Section 382 for November 2022

Adjusted federal long-term rate for the current month 2.97%
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.) 2.97%
 

REV. RUL. 2022-20 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for November 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 7.91%
Appropriate percentage for the 30% present value low-income housing credit 3.39%
 

REV. RUL. 2022-20 TABLE 5 Rate Under Section 7520 for November 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 4.80%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2022. See Rev. Rul. 2022-20, page 407.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of November 2022. See Rev. Rul. 2022-20, page 407.

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 November 2022. See Rev. Rul. 2022-20, page 407.

Source: official text