Internal Revenue Service
Revenue Ruling
TaxLinks.com
smFEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE, AND THE LONG-TERM EXEMPT RATE
Released: April 20, 2001
Published: May 7, 2001
Section 42.--Low-Income Housing Credit
The adjusted applicable federal
short-term, mid-term and long-term rates are set forth for the month of May
2001.
Section 280G.--Golden Parachute Payments
Federal short-term, mid-term, and
long-term rates are set forth for the month of May 2001.
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 May 2001.
Section 467.--Certain Payments for the Use of Property or Services
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 468.--Special Rules for Mining and Solid Waste Reclamation and Closing
Costs
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 482.--Allocation of Income and Deductions Among Taxpayers
Federal short-term, mid-term, and
long-term rates are set forth for the month of May 2001.
Section 483.--Interest on Certain Deferred Payments
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 642.--Special Rules for Credits and Deductions
Federal short-term, mid-term, and
long-term rates are set forth for the month of May 2001.
Section 807.--Rules for Certain Reserves
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 846.--Discounted Unpaid Losses Defined
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 1288.--Treatment of Original Issue Discounts on Tax-Exempt Obligations
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 7520.--Valuation Tables
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 7872.--Treatment of Loans with Below-Market Interest Rates
The adjusted applicable federal
short-term, mid-term, and long-term rates are set forth for the month of May
2001.
Section 1274.--Determination of Issue Price in the Case of Certain Debt
Instruments Issued for Property
Federal rates; adjusted federal
rates; adjusted federal long-term rate, and the long-term exempt rate. For
purposes of sections 382, 1274, 1288, and other sections of the Code, tables set
forth the rates for May 2001.
Federal rates; adjusted federal
rates; adjusted federal long-term rate, and the long-term exempt rate. For
purposes of sections 382, 1274, 1288, and other sections of the Code, tables set
forth the rates for May 2001.
This revenue ruling provides
various prescribed rates for federal income tax purposes for May 2001 (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)(2) for buildings placed in service
during the current month. 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. 2001-22 TABLE 1
Applicable Federal
Rates (AFR) for May 2001
Period for Compounding
Annual Semiannual
Quarterly Monthly
Short-Term
AFR
4.25%
4.21% 4.19%
4.17%
110% AFR 4.68%
4.63% 4.60%
4.59%
120% AFR 5.11%
5.05% 5.02%
5.00%
130% AFR 5.54%
5.47% 5.43%
5.41%
Mid-Term
AFR
4.77%
4.71% 4.68%
4.66%
110% AFR 5.25%
5.18% 5.15%
5.12%
120% AFR 5.73%
5.65% 5.61%
5.58%
130% AFR 6.21%
6.12% 6.07%
6.04%
150% AFR 7.19%
7.07% 7.01%
6.97%
175% AFR 8.41%
8.24% 8.16%
8.10%
Long-Term
AFR 5.43%
5.36%
5.32% 5.30%
110% AFR 5.99%
5.90% 5.86%
5.83%
120% AFR 6.53%
6.43% 6.38%
6.35%
130% AFR 7.09%
6.97% 6.91%
6.87%
REV. RUL. 2001-22 TABLE 2
Adjusted AFR for May 2001
Period for Compounding
Annual Semiannual
Quarterly Monthly
Short-term adjusted AFR 3.34%
3.31%
3.30% 3.29%
Mid-term adjusted AFR 3.89%
3.85%
3.83% 3.82%
Long-term adjusted AFR 4.89%
4.83%
4.80% 4.78%
REV. RUL. 2001-22 TABLE 3
Rates Under Section 382 for May 2001
Adjusted federal long-term rate for the current month
4.89%
Long-term tax-exempt rate for ownership changes during the current month
4.89%
(the highest of the adjusted
federal long-term rates for the current
month and the prior two months.)
REV.
RUL. 2001-22 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for May 2001
Appropriate percentage for the 70% present value low-income housing
8.19%
credit
Appropriate percentage for the 30% present value low-income housing
3.51%
credit
REV. RUL. 2001-22 TABLE 5
Rate Under Section 7520 for May 2001
Applicable federal rate for determining the present value of an annuity,
5.8%
an interest for life or a term of
years, or a remainder or reversionary
interest
Rev. Rul. 2001-22, 2001-19 I.R.B. 1152