Applicable Federal Rates
This AFR material has been established and is being
maintained as part of the
Shaw Pittman LLP Tax
Page, a demonstration World Wide Web project.
are welcome on the design or content of this material.
For further information, please contact
a tax partner in our Palo Alto office.
Actual AFR Revenue Rulings Available
We now have available the actual IRS Revenue Ruling with the AFRs (and all of
the rates derived from those AFRs) for January 1996 through the most recently
available month (December 2014). Those Revenue Rulings are in pdf format from the
Internal Revenue Bulletin, so you'll need the
to view or print them.
Last updated November 20, 2014
Available Current AFRs
- Current Short Term AFRs for
instruments having a term of three (3) years or less.
- Current Mid Term AFRs for instruments
having a term in excess of three (3) years but no greater than nine (9)
- Current Long Term AFRs for instruments
having a term in excess of nine (9) years.
- Current Adjusted Long Term Rates for
determining the Long Term Tax-Exempt Rate, used to compute the
annual net operating loss carryover utilization limitation following a
change in ownership.
- Current Section 7520 Rate, used to value
annuities, life interests or
interests for terms of years and remainder or reversionary interests.
- Current AFR
Revenue Ruling (December 2014).
If your browser supports forms, you can use the
AFR Search Page to find any of
our available AFRs.
Special Note: March 2013 Adjusted AFRs
In Notice 2013-4, the IRS announced
that it was considering changes in the way it determines the adjusted AFRs and
adjusted federal long-term rate published in Tables 2 and 3, respectively, of
its monthly AFR revenue ruling. The IRS also announced interim guidance
(essentially constraining the adjusted AFR so that it would never be higher
than the comparable AFR) that
it said would be reflected in its March 2013 AFR ruling. However, the version
of that March 2013 AFR ruling originally released by the IRS did not reflect
the changes of the interim guidance. The IRS has corrected the March 2013 AFR
ruling and it and the corrected rates are available at this site.
Each month, the U.S. Internal Revenue Service publishes base interest
rates known as the applicable federal rates ("AFRs"). These interest rates
are used for various purposes under the Internal Revenue Code,
particularly the imputed interest and original issue discount rules. The
AFRs for a particular month are generally made available during the third
or fourth week of the preceeding month; the current rate
information presented will ordinarily contain the four (4) most recent
available months since, in certain circumstances, the AFR to be utilized is
determined as the lowest relevant AFR for the month of the transaction
and the two preceding months.
In addition, the highest of the adjusted federal long-term rates for the
month of a "change in ownership" under Internal Revenue Code section 382
and the prior two months becomes the federal long-term tax-exempt
rate for that month, which in turn determines the annual limitation on
the use of corporate net operating loss carryovers following such a change
The current IRS Revenue Ruling has all the AFRs (and rates derived from the
AFRs) but only for the most recently available month