Internal Revenue Bulletin:  2016-10 

March 7, 2016 

Rev. Rul. 2016–07


Table of Contents

This revenue ruling provides various prescribed rates for federal income tax purposes for March 2016 (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. 2016–07 TABLE 1
Applicable Federal Rates (AFR) for March 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term
AFR .65% .65% .65% .65%
110% AFR .72% .72% .72% .72%
120% AFR .78% .78% .78% .78%
130% AFR .85% .85% .85% .85%
Mid-term
AFR 1.48% 1.47% 1.47% 1.47%
110% AFR 1.63% 1.62% 1.62% 1.61%
120% AFR 1.77% 1.76% 1.76% 1.75%
130% AFR 1.92% 1.91% 1.91% 1.90%
150% AFR 2.22% 2.21% 2.20% 2.20%
175% AFR 2.59% 2.57% 2.56% 2.56%
Long-term
AFR 2.33% 2.32% 2.31% 2.31%
110% AFR 2.57% 2.55% 2.54% 2.54%
120% AFR 2.80% 2.78% 2.77% 2.76%
130% AFR 3.04% 3.02% 3.01% 3.00%
REV. RUL. 2016–07 TABLE 2
Adjusted AFR for March 2016
Period for Compounding
  Annual Semiannual Quarterly Monthly
Short-term adjusted AFR .55% .55% .55% .55%
Mid-term adjusted AFR 1.12% 1.12% 1.12% 1.12%
Long-term adjusted AFR 2.27% 2.26% 2.25% 2.25%
REV. RUL. 2016–07 TABLE 3
Rates Under Section 382 for March 2016
Adjusted federal long-term rate for the current month 2.27%
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.) 2.65%
REV. RUL. 2016–07 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for March 2016
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 7.44%
Appropriate percentage for the 30% present value low-income housing credit 3.19%
REV. RUL. 2016–07 TABLE 5
Rate Under Section 7520 for March 2016
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 1.8%

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