Part III. Administrative, Procedural, and Miscellaneous
Internal Revenue Bulletin 2009-10 · 2026-10-03 edition · updated 2026-10-04 · United States
Update for Actuarial Tables Under Section 7520
Notice 2009–18
This notice provides supplements to the actuarial tables prescribed under § 7520 of the Internal Revenue Code. Section 7520 requires the Secretary to prescribe actuarial tables for valuing annuities, terms certain, reversions, and remainders. The interest rates required for these computa
tions is 120% of the mid-term Applicable Federal Rate for the month of valuation (or, for transfers for charitable purposes, the interest rate for either of the two months preceding the month of valuation). In T.D. 8886, the Secretary prescribed the tables needed for valuations after April 30, 1999. This Treasury Decision contains regulations under sections 664, 2031, and 7520, and provides tables with interest rates starting at 4.2%. In addition, these regulations refer taxpayers to
Table S — Single Life Remainder Factors
Based on Life Table 90CM For Valuations after April 30, 1999
Interest Rate
IRS Publications 1457, 1458, and 1459 for factors at interest rates from 2.2% to 22.0%. Recently, 120% of the mid-term Applicable Federal fell below 2.2%. None of the published tables provides factors for the interest rates below 2.2%. This notice furnishes extensions to the existing tables for interest rates below 2.2%.
Table S provided below extends Table S as furnished in § 20.2031–7(d)(7) of the Federal Estate Tax Regulations.
0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Ages
0 0.86074 0.74206 0.64081 0.55434 0.48040 0.41712 0.36289 0.31637 0.27642 0.24206 1 0.86115 0.74260 0.64127 0.55456 0.48029 0.41661 0.36193 0.31495 0.27452 0.23969 2 0.86278 0.74539 0.64486 0.55868 0.48472 0.42118 0.36654 0.31949 0.27893 0.24393 3 0.86444 0.74824 0.64855 0.56293 0.48932 0.42595 0.37136 0.32427 0.28360 0.24844 4 0.86611 0.75114 0.65231 0.56727 0.49402 0.43085 0.37632 0.32920 0.28843 0.25313
5 0.86781 0.75407 0.65612 0.57168 0.49880 0.43585 0.38140 0.33426 0.29341 0.25796 6 0.86951 0.75702 0.65997 0.57614 0.50366 0.44092 0.38657 0.33943 0.29850 0.26292 7 0.87121 0.75999 0.66384 0.58064 0.50857 0.44608 0.39183 0.34470 0.30370 0.26799 8 0.87293 0.76298 0.66775 0.58519 0.51354 0.45130 0.39718 0.35006 0.30900 0.27318 9 0.87465 0.76598 0.67169 0.58979 0.51858 0.45661 0.40262 0.35553 0.31442 0.27850
10 0.87637 0.76900 0.67566 0.59443 0.52368 0.46199 0.40815 0.36111 0.31996 0.28394 11 0.87811 0.77204 0.67966 0.59912 0.52884 0.46745 0.41377 0.36678 0.32561 0.28950 12 0.87984 0.77509 0.68369 0.60385 0.53405 0.47297 0.41947 0.37255 0.33136 0.29518 13 0.88158 0.77815 0.68772 0.60860 0.53930 0.47854 0.42521 0.37837 0.33719 0.30093 14 0.88330 0.78119 0.69175 0.61334 0.54454 0.48411 0.43098 0.38423 0.34304 0.30672
15 0.88502 0.78421 0.69576 0.61807 0.54977 0.48968 0.43675 0.39009 0.34891 0.31253 16 0.88671 0.78721 0.69974 0.62277 0.55499 0.49523 0.44251 0.39594 0.35478 0.31835 17 0.88840 0.79020 0.70371 0.62747 0.56020 0.50079 0.44827 0.40181 0.36066 0.32419 18 0.89008 0.79317 0.70767 0.63215 0.56540 0.50635 0.45405 0.40770 0.36658 0.33006 19 0.89175 0.79615 0.71163 0.63686 0.57064 0.51195 0.45988 0.41365 0.37256 0.33601
20 0.89343 0.79913 0.71561 0.64159 0.57591 0.51760 0.46578 0.41968 0.37863 0.34206 21 0.89510 0.80212 0.71961 0.64635 0.58123 0.52331 0.47174 0.42579 0.38480 0.34821 22 0.89678 0.80511 0.72362 0.65113 0.58659 0.52907 0.47777 0.43197 0.39105 0.35446 23 0.89846 0.80811 0.72766 0.65595 0.59199 0.53489 0.48387 0.43824 0.39741 0.36082 24 0.90014 0.81113 0.73171 0.66081 0.59744 0.54078 0.49005 0.44461 0.40387 0.36730
25 0.90183 0.81415 0.73579 0.66570 0.60295 0.54674 0.49632 0.45108 0.41045 0.37392 26 0.90352 0.81719 0.73990 0.67063 0.60852 0.55276 0.50268 0.45765 0.41714 0.38065 27 0.90521 0.82025 0.74403 0.67561 0.61414 0.55887 0.50913 0.46433 0.42396 0.38753 28 0.90691 0.82331 0.74819 0.68062 0.61981 0.56504 0.51566 0.47111 0.43088 0.39453 29 0.90860 0.82638 0.75236 0.68567 0.62553 0.57127 0.52226 0.47797 0.43792 0.40165
March 9, 2009 648 2009–10 I.R.B.
Table S — Single Life Remainder Factors
Based on Life Table 90CM For Valuations after April 30, 1999
Interest Rate
0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Ages
30 0.91030 0.82946 0.75655 0.69074 0.63129 0.57755 0.52894 0.48493 0.44505 0.40889 31 0.91200 0.83254 0.76075 0.69583 0.63709 0.58389 0.53569 0.49196 0.45228 0.41623 32 0.91369 0.83562 0.76496 0.70095 0.64292 0.59029 0.54250 0.49908 0.45961 0.42369 33 0.91539 0.83871 0.76919 0.70610 0.64881 0.59674 0.54939 0.50630 0.46705 0.43128 34 0.91708 0.84181 0.77343 0.71127 0.65472 0.60325 0.55635 0.51359 0.47459 0.43897
35 0.91878 0.84491 0.77769 0.71648 0.66069 0.60982 0.56339 0.52099 0.48224 0.44680 36 0.92047 0.84801 0.78196 0.72170 0.66669 0.61644 0.57050 0.52847 0.48999 0.45475 37 0.92216 0.85112 0.78625 0.72696 0.67273 0.62311 0.57768 0.53604 0.49785 0.46281 38 0.92385 0.85424 0.79054 0.73224 0.67882 0.62985 0.58493 0.54370 0.50582 0.47101 39 0.92555 0.85735 0.79486 0.73754 0.68494 0.63664 0.59226 0.55145 0.51390 0.47932
40 0.92724 0.86047 0.79918 0.74287 0.69111 0.64349 0.59966 0.55930 0.52209 0.48777 41 0.92893 0.86360 0.80352 0.74823 0.69732 0.65041 0.60715 0.56724 0.53040 0.49636 42 0.93062 0.86673 0.80788 0.75362 0.70357 0.65738 0.61471 0.57528 0.53882 0.50508 43 0.93230 0.86986 0.81224 0.75903 0.70986 0.66440 0.62234 0.58341 0.54735 0.51392 44 0.93399 0.87299 0.81661 0.76445 0.71617 0.67146 0.63003 0.59162 0.55597 0.52288
45 0.93566 0.87612 0.82097 0.76988 0.72251 0.67856 0.63777 0.59988 0.56468 0.53194 46 0.93733 0.87923 0.82534 0.77531 0.72886 0.68569 0.64555 0.60821 0.57346 0.54109 47 0.93899 0.88233 0.82968 0.78074 0.73520 0.69282 0.65336 0.61658 0.58229 0.55031 48 0.94064 0.88542 0.83402 0.78616 0.74156 0.69998 0.66119 0.62499 0.59119 0.55960 49 0.94228 0.88849 0.83834 0.79157 0.74791 0.70714 0.66905 0.63344 0.60014 0.56897
50 0.94390 0.89155 0.84265 0.79697 0.75426 0.71431 0.67693 0.64193 0.60914 0.57841 51 0.94552 0.89459 0.84694 0.80236 0.76061 0.72149 0.68483 0.65045 0.61819 0.58791 52 0.94712 0.89760 0.85121 0.80772 0.76693 0.72866 0.69273 0.65898 0.62727 0.59745 53 0.94871 0.90060 0.85545 0.81306 0.77324 0.73581 0.70062 0.66752 0.63636 0.60703 54 0.95028 0.90356 0.85965 0.81836 0.77951 0.74294 0.70850 0.67605 0.64547 0.61662
55 0.95183 0.90650 0.86383 0.82363 0.78575 0.75004 0.71636 0.68458 0.65458 0.62624 56 0.95337 0.90941 0.86797 0.82887 0.79196 0.75712 0.72421 0.69310 0.66369 0.63587 57 0.95488 0.91229 0.87207 0.83406 0.79814 0.76416 0.73202 0.70160 0.67280 0.64551 58 0.95638 0.91514 0.87612 0.83921 0.80426 0.77116 0.73980 0.71007 0.68188 0.65514 59 0.95785 0.91794 0.88013 0.84429 0.81032 0.77809 0.74751 0.71848 0.69091 0.66472
60 0.95930 0.92070 0.88408 0.84932 0.81631 0.78495 0.75515 0.72682 0.69988 0.67425 61 0.96073 0.92342 0.88797 0.85428 0.82223 0.79175 0.76273 0.73511 0.70881 0.68374 62 0.96213 0.92611 0.89183 0.85919 0.82811 0.79849 0.77027 0.74336 0.71770 0.69321 63 0.96352 0.92876 0.89563 0.86405 0.83393 0.80519 0.77776 0.75157 0.72655 0.70266 64 0.96488 0.93137 0.89939 0.86885 0.83969 0.81182 0.78518 0.75972 0.73536 0.71206
65 0.96622 0.93395 0.90310 0.87360 0.84538 0.81839 0.79255 0.76781 0.74412 0.72142 66 0.96754 0.93649 0.90676 0.87829 0.85102 0.82490 0.79986 0.77585 0.75283 0.73075 67 0.96885 0.93899 0.91038 0.88294 0.85662 0.83136 0.80713 0.78386 0.76152 0.74005 68 0.97013 0.94146 0.91395 0.88753 0.86215 0.83777 0.81434 0.79182 0.77016 0.74932 69 0.97139 0.94389 0.91747 0.89206 0.86762 0.84410 0.82148 0.79970 0.77873 0.75853
70 0.97262 0.94628 0.92092 0.89651 0.87299 0.85034 0.82852 0.80748 0.78720 0.76765 71 0.97383 0.94861 0.92430 0.90087 0.87827 0.85647 0.83544 0.81514 0.79555 0.77663 72 0.97500 0.95088 0.92760 0.90513 0.88343 0.86247 0.84223 0.82267 0.80376 0.78548 73 0.97614 0.95309 0.93082 0.90929 0.88847 0.86835 0.84888 0.83004 0.81181 0.79417 74 0.97726 0.95525 0.93396 0.91336 0.89342 0.87411 0.85541 0.83729 0.81974 0.80273
75 0.97834 0.95737 0.93705 0.91736 0.89827 0.87977 0.86183 0.84443 0.82756 0.81119 76 0.97941 0.95944 0.94007 0.92128 0.90305 0.88535 0.86817 0.85149 0.83529 0.81955 77 0.98045 0.96147 0.94304 0.92514 0.90774 0.89084 0.87442 0.85845 0.84292 0.82783 78 0.98147 0.96346 0.94595 0.92892 0.91236 0.89624 0.88056 0.86531 0.85045 0.83600 79 0.98246 0.96540 0.94879 0.93261 0.91686 0.90152 0.88658 0.87203 0.85784 0.84402
2009–10 I.R.B. 649 March 9, 2009
Table S — Single Life Remainder Factors
Based on Life Table 90CM For Valuations after April 30, 1999
Interest Rate
0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Ages
80 0.98342 0.96727 0.95153 0.93619 0.92124 0.90666 0.89244 0.87857 0.86504 0.85185 81 0.98434 0.96907 0.95418 0.93964 0.92546 0.91161 0.89810 0.88490 0.87202 0.85944 82 0.98523 0.97080 0.95672 0.94296 0.92951 0.91638 0.90355 0.89101 0.87875 0.86676 83 0.98607 0.97246 0.95915 0.94614 0.93341 0.92097 0.90880 0.89689 0.88524 0.87384 84 0.98689 0.97406 0.96150 0.94921 0.93718 0.92541 0.91388 0.90259 0.89153 0.88070
85 0.98767 0.97560 0.96378 0.95219 0.94084 0.92972 0.91882 0.90814 0.89766 0.88740 86 0.98843 0.97709 0.96596 0.95506 0.94437 0.93388 0.92359 0.91350 0.90359 0.89388 87 0.98915 0.97850 0.96805 0.95779 0.94772 0.93784 0.92814 0.91861 0.90926 0.90007 88 0.98983 0.97983 0.97002 0.96038 0.95091 0.94161 0.93247 0.92348 0.91466 0.90598 89 0.99047 0.98110 0.97189 0.96284 0.95394 0.94519 0.93659 0.92813 0.91980 0.91162
90 0.99108 0.98230 0.97367 0.96517 0.95681 0.94859 0.94050 0.93253 0.92470 0.91698 91 0.99164 0.98342 0.97532 0.96735 0.95950 0.95177 0.94415 0.93666 0.92927 0.92200 92 0.99216 0.98444 0.97683 0.96933 0.96195 0.95467 0.94750 0.94043 0.93347 0.92660 93 0.99263 0.98537 0.97821 0.97115 0.96419 0.95733 0.95056 0.94389 0.93731 0.93082 94 0.99306 0.98622 0.97947 0.97282 0.96625 0.95977 0.95338 0.94707 0.94085 0.93471
95 0.99347 0.98702 0.98066 0.97438 0.96819 0.96207 0.95603 0.95007 0.94418 0.93837 96 0.99385 0.98777 0.98177 0.97584 0.96999 0.96421 0.95849 0.95285 0.94728 0.94178 97 0.99419 0.98845 0.98278 0.97718 0.97164 0.96617 0.96076 0.95542 0.95014 0.94492 98 0.99451 0.98909 0.98373 0.97842 0.97318 0.96800 0.96288 0.95781 0.95280 0.94785 99 0.99482 0.98970 0.98464 0.97963 0.97467 0.96977 0.96492 0.96013 0.95538 0.95069
100 0.99512 0.99029 0.98552 0.98079 0.97611 0.97148 0.96690 0.96236 0.95787 0.95343 101 0.99541 0.99087 0.98637 0.98192 0.97751 0.97315 0.96883 0.96455 0.96031 0.95611 102 0.99570 0.99143 0.98721 0.98303 0.97888 0.97478 0.97071 0.96668 0.96269 0.95873 103 0.99598 0.99199 0.98803 0.98411 0.98023 0.97638 0.97257 0.96878 0.96503 0.96132 104 0.99627 0.99257 0.98890 0.98526 0.98165 0.97808 0.97453 0.97101 0.96752 0.96405
105 0.99656 0.99314 0.98975 0.98638 0.98304 0.97973 0.97644 0.97318 0.96994 0.96672 106 0.99692 0.99385 0.99081 0.98779 0.98479 0.98181 0.97885 0.97591 0.97300 0.97010 107 0.99734 0.99470 0.99207 0.98946 0.98687 0.98429 0.98172 0.97918 0.97664 0.97412 108 0.99797 0.99596 0.99395 0.99196 0.98997 0.98800 0.98603 0.98408 0.98213 0.98019 109 0.99900 0.99801 0.99702 0.99603 0.99505 0.99407 0.99310 0.99213 0.99116 0.99020
Table B provided below extends Table B furnished in § 20.2031–7(d)(6) of the Federal Estate Tax Regulations.
Table B Remainder Factors for Terms Certain
Interest Rate
0.2% 0.4% 0.6% 0.8% 1.0% Years
1 0.998004 0.996016 0.994036 0.992063 0.990099 2 0.996012 0.992048 0.988107 0.984190 0.980296 3 0.994024 0.988095 0.982214 0.976379 0.970590 4 0.992040 0.984159 0.976356 0.968630 0.960980 5 0.990060 0.980238 0.970533 0.960942 0.951466
March 9, 2009 650 2009–10 I.R.B.
Table B Remainder Factors for Terms Certain
Interest Rate
0.2% 0.4% 0.6% 0.8% 1.0% Years
6 0.988084 0.976332 0.964744 0.953316 0.942045 7 0.986111 0.972443 0.958990 0.945750 0.932718 8 0.984143 0.968568 0.953271 0.938244 0.923483 9 0.982179 0.964710 0.947585 0.930798 0.914340 10 0.980218 0.960866 0.941933 0.923410 0.905287
11 0.978262 0.957038 0.936315 0.916082 0.896324 12 0.976309 0.953225 0.930731 0.908811 0.887449 13 0.974360 0.949427 0.925180 0.901598 0.878663 14 0.972416 0.945645 0.919662 0.894443 0.869963 15 0.970475 0.941877 0.914177 0.887344 0.861349
16 0.968538 0.938125 0.908725 0.880302 0.852821 17 0.966604 0.934387 0.903305 0.873315 0.844377 18 0.964675 0.930665 0.897917 0.866384 0.836017 19 0.962749 0.926957 0.892562 0.859508 0.827740 20 0.960828 0.923264 0.887239 0.852686 0.819544
21 0.958910 0.919585 0.881947 0.845919 0.811430 22 0.956996 0.915922 0.876687 0.839205 0.803396 23 0.955086 0.912273 0.871458 0.832545 0.795442 24 0.953179 0.908638 0.866260 0.825938 0.787566 25 0.951277 0.905018 0.861094 0.819383 0.779768
26 0.949378 0.901412 0.855958 0.812879 0.772048 27 0.947483 0.897821 0.850853 0.806428 0.764404 28 0.945592 0.894244 0.845778 0.800028 0.756836 29 0.943705 0.890681 0.840734 0.793678 0.749342 30 0.941821 0.887133 0.835720 0.787379 0.741923
31 0.939941 0.883598 0.830735 0.781130 0.734577 32 0.938065 0.880078 0.825780 0.774931 0.727304 33 0.936193 0.876572 0.820855 0.768781 0.720103 34 0.934324 0.873079 0.815960 0.762679 0.712973 35 0.932459 0.869601 0.811093 0.756626 0.705914
36 0.930598 0.866136 0.806256 0.750621 0.698925 37 0.928740 0.862686 0.801447 0.744664 0.692005 38 0.926887 0.859249 0.796667 0.738754 0.685153 39 0.925036 0.855825 0.791915 0.732891 0.678370 40 0.923190 0.852416 0.787192 0.727074 0.671653
41 0.921347 0.849020 0.782497 0.721304 0.665003 42 0.919508 0.845637 0.777830 0.715579 0.658419 43 0.917673 0.842268 0.773191 0.709900 0.651900 44 0.915841 0.838912 0.768580 0.704266 0.645445 45 0.914013 0.835570 0.763996 0.698676 0.639055
46 0.912189 0.832241 0.759439 0.693131 0.632728 47 0.910368 0.828925 0.754910 0.687630 0.626463 48 0.908551 0.825623 0.750407 0.682173 0.620260 49 0.906738 0.822334 0.745931 0.676759 0.614119 50 0.904928 0.819057 0.741483 0.671388 0.608039
51 0.903122 0.815794 0.737060 0.666059 0.602019 52 0.901319 0.812544 0.732664 0.660773 0.596058 53 0.899520 0.809307 0.728294 0.655529 0.590156 54 0.897724 0.806083 0.723951 0.650326 0.584313 55 0.895933 0.802871 0.719633 0.645165 0.578528
2009–10 I.R.B. 651 March 9, 2009
Table B Remainder Factors for Terms Certain
Interest Rate
0.2% 0.4% 0.6% 0.8% 1.0% Years
56 0.894144 0.799672 0.715341 0.640045 0.572800 57 0.892360 0.796486 0.711074 0.634965 0.567129 58 0.890578 0.793313 0.706833 0.629925 0.561514 59 0.888801 0.790153 0.702618 0.624926 0.555954 60 0.887027 0.787005 0.698427 0.619966 0.550450
Table B Remainder Factors for Terms Certain
Interest Rate
1.2% 1.4% 1.6% 1.8% 2.0% Years
1 0.988142 0.986193 0.984252 0.982318 0.980392 2 0.976425 0.972577 0.968752 0.964949 0.961169 3 0.964847 0.959149 0.953496 0.947887 0.942322 4 0.953406 0.945906 0.938480 0.931127 0.923845 5 0.942101 0.932847 0.923701 0.914663 0.905731
6 0.930930 0.919967 0.909155 0.898490 0.887971 7 0.919891 0.907265 0.894837 0.882603 0.870560 8 0.908983 0.894739 0.880745 0.866997 0.853490 9 0.898205 0.882386 0.866875 0.851667 0.836755 10 0.887554 0.870203 0.853224 0.836608 0.820348
11 0.877030 0.858188 0.839787 0.821816 0.804263 12 0.866630 0.846339 0.826562 0.807285 0.788493 13 0.856354 0.834654 0.813545 0.793010 0.773033 14 0.846200 0.823130 0.800734 0.778989 0.757875 15 0.836166 0.811766 0.788124 0.765215 0.743015
16 0.826251 0.800558 0.775712 0.751684 0.728446 17 0.816453 0.789505 0.763496 0.738393 0.714163 18 0.806772 0.778604 0.751473 0.725337 0.700159 19 0.797205 0.767854 0.739639 0.712512 0.686431 20 0.787752 0.757253 0.727991 0.699914 0.672971
21 0.778411 0.746798 0.716526 0.687538 0.659776 22 0.769181 0.736487 0.705242 0.675381 0.646839 23 0.760061 0.726318 0.694136 0.663439 0.634156 24 0.751048 0.716290 0.683205 0.651708 0.621721 25 0.742142 0.706401 0.672446 0.640185 0.609531
26 0.733342 0.696648 0.661856 0.628866 0.597579 27 0.724646 0.687029 0.651433 0.617746 0.585862 28 0.716054 0.677544 0.641174 0.606823 0.574375 29 0.707563 0.668189 0.631077 0.596094 0.563112 30 0.699173 0.658963 0.621139 0.585554 0.552071
31 0.690882 0.649865 0.611357 0.575200 0.541246 32 0.682690 0.640893 0.601730 0.565029 0.530633 33 0.674595 0.632044 0.592254 0.555039 0.520229 34 0.666596 0.623318 0.582927 0.545225 0.510028 35 0.658692 0.614712 0.573747 0.535584 0.500028
March 9, 2009 652 2009–10 I.R.B.
Table B Remainder Factors for Terms Certain
Interest Rate
1.2% 1.4% 1.6% 1.8% 2.0% Years
36 0.650881 0.606225 0.564711 0.526114 0.490223 37 0.643163 0.597855 0.555818 0.516812 0.480611 38 0.635537 0.589600 0.547065 0.507673 0.471187 39 0.628001 0.581460 0.538450 0.498697 0.461948 40 0.620554 0.573432 0.529970 0.489879 0.452890
41 0.613196 0.565515 0.521624 0.481217 0.444010 42 0.605924 0.557707 0.513410 0.472708 0.435304 43 0.598740 0.550007 0.505325 0.464350 0.426769 44 0.591640 0.542413 0.497367 0.456140 0.418401 45 0.584624 0.534924 0.489534 0.448074 0.410197
46 0.577692 0.527538 0.481825 0.440152 0.402154 47 0.570842 0.520255 0.474237 0.432369 0.394268 48 0.564073 0.513072 0.466769 0.424724 0.386538 49 0.557384 0.505988 0.459418 0.417214 0.378958 50 0.550775 0.499002 0.452183 0.409837 0.371528
51 0.544244 0.492112 0.445062 0.402590 0.364243 52 0.537791 0.485318 0.438054 0.395472 0.357101 53 0.531414 0.478617 0.431155 0.388479 0.350099 54 0.525112 0.472009 0.424365 0.381610 0.343234 55 0.518886 0.465492 0.417682 0.374863 0.336504
56 0.512733 0.459065 0.411105 0.368234 0.329906 57 0.506653 0.452727 0.404631 0.361723 0.323437 58 0.500645 0.446477 0.398258 0.355328 0.317095 59 0.494709 0.440312 0.391987 0.349045 0.310878 60 0.488843 0.434233 0.385814 0.342873 0.304782
Table J provided below extends Table J as furnished in § 20.2031–7(d)(6) of the Federal Estate Tax Regulations.
Table J Adjustment Factors for Term Certain Annuities
Payable at the Beginning of Period Interest Rate Annually Semi-Annually Quarterly Monthly Weekly
0.2% 1.0020 1.0015 1.0012 1.0011 1.0010 0.4% 1.0040 1.0030 1.0025 1.0022 1.0020 0.6% 1.0060 1.0045 1.0037 1.0032 1.0031 0.8% 1.0080 1.0060 1.0050 1.0043 1.0041 1.0% 1.0100 1.0075 1.0062 1.0054 1.0051
1.2% 1.0120 1.0090 1.0075 1.0065 1.0061 1.4% 1.0140 1.0105 1.0087 1.0076 1.0071 1.6% 1.0160 1.0120 1.0100 1.0086 1.0081 1.8% 1.0180 1.0135 1.0112 1.0097 1.0091 2.0% 1.0200 1.0150 1.0125 1.0108 1.0102
2009–10 I.R.B. 653 March 9, 2009
Table K provided below extends Table K as furnished in § 20.2031–7(d)(6) of the Federal Estate Tax Regulations.
Table K Adjustment Factors for Annuities
Payable at the End of Period Interest Rate Annually Semi-Annually Quarterly Monthly Weekly
0.2% 1.0000 1.0005 1.0007 1.0009 1.0010 0.4% 1.0000 1.0010 1.0015 1.0018 1.0020 0.6% 1.0000 1.0015 1.0022 1.0027 1.0029 0.8% 1.0000 1.0020 1.0030 1.0037 1.0039 1.0% 1.0000 1.0025 1.0037 1.0046 1.0049
1.2% 1.0000 1.0030 1.0045 1.0055 1.0059 1.4% 1.0000 1.0035 1.0052 1.0064 1.0068 1.6% 1.0000 1.0040 1.0060 1.0073 1.0078 1.8% 1.0000 1.0045 1.0067 1.0082 1.0088 2.0% 1.0000 1.0050 1.0075 1.0091 1.0098
Table D provided below extends Table D as furnished in § 1.664–4(e)(6) of the Federal Income Tax Regulations.
Table D Unitrust Remainder Factors for Terms Certain
Adjusted Payout Rate
0.2% 0.4% 0.6% 0.8% 1.0% Years
1 0.998000 0.996000 0.994000 0.992000 0.990000 2 0.996004 0.992016 0.988036 0.984064 0.980100 3 0.994012 0.988048 0.982108 0.976191 0.970299 4 0.992024 0.984096 0.976215 0.968382 0.960596 5 0.990040 0.980159 0.970358 0.960635 0.950990
6 0.988060 0.976239 0.964536 0.952950 0.941480 7 0.986084 0.972334 0.958748 0.945326 0.932065 8 0.984112 0.968444 0.952996 0.937764 0.922745 9 0.982143 0.964571 0.947278 0.930262 0.913517 10 0.980179 0.960712 0.941594 0.922819 0.904382
11 0.978219 0.956870 0.935945 0.915437 0.895338 12 0.976262 0.953042 0.930329 0.908113 0.886385 13 0.974310 0.949230 0.924747 0.900848 0.877521 14 0.972361 0.945433 0.919199 0.893642 0.868746 15 0.970416 0.941651 0.913683 0.886493 0.860058
16 0.968476 0.937885 0.908201 0.879401 0.851458 17 0.966539 0.934133 0.902752 0.872365 0.842943 18 0.964606 0.930397 0.897336 0.865386 0.834514 19 0.962676 0.926675 0.891952 0.858463 0.826169 20 0.960751 0.922968 0.886600 0.851596 0.817907
March 9, 2009 654 2009–10 I.R.B.
Table D Unitrust Remainder Factors for Terms Certain
Adjusted Payout Rate
1.2% 1.4% 1.6% 1.8% 2.0% Years
1 0.988000 0.986000 0.984000 0.982000 0.980000 2 0.976144 0.972196 0.968256 0.964324 0.960400 3 0.964430 0.958585 0.952764 0.946966 0.941192 4 0.952857 0.945165 0.937520 0.929921 0.922368 5 0.941423 0.931933 0.922519 0.913182 0.903921
6 0.930126 0.918886 0.907759 0.896745 0.885842 7 0.918964 0.906021 0.893235 0.880604 0.868126 8 0.907937 0.893337 0.878943 0.864753 0.850763 9 0.897041 0.880830 0.864880 0.849187 0.833748 10 0.886277 0.868499 0.851042 0.833902 0.817073
11 0.875642 0.856340 0.837425 0.818892 0.800731 12 0.865134 0.844351 0.824027 0.804151 0.784717 13 0.854752 0.832530 0.810842 0.789677 0.769022 14 0.844495 0.820875 0.797869 0.775463 0.753642 15 0.834361 0.809382 0.785103 0.761504 0.738569
16 0.824349 0.798051 0.772541 0.747797 0.723798 17 0.814457 0.786878 0.760180 0.734337 0.709322 18 0.804683 0.775862 0.748018 0.721119 0.695135 19 0.795027 0.765000 0.736049 0.708139 0.681233 20 0.785487 0.754290 0.724272 0.695392 0.667608
Table F(0.2)
With Interest at 0.2% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.999501 0.999251 0.999085 1 2 0.999834 0.999334 0.999085 0.998918 2 3 0.999667 0.999168 0.998918 3 4 0.999501 0.999002 0.998752 4 5 0.999334 0.998835 5 6 0.999168 0.998669 6 7 0.999001 0.998503 7 8 0.998835 8 9 0.998669 9 10 0.998503 10 11 0.998336 11 12 0.998170 12 — 0.998004
2009–10 I.R.B. 655 March 9, 2009
Table F(0.4)
With Interest at 0.4% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.999003 0.998505 0.998173 1 2 0.999667 0.998671 0.998173 0.997841 2 3 0.999335 0.998339 0.997841 3 4 0.999002 0.998006 0.997509 4 5 0.998670 0.997675 5 6 0.998338 0.997343 6 7 0.998006 0.997011 7 8 0.997674 8 9 0.997342 9 10 0.997010 10 11 0.996679 11 12 0.996347 12 — 0.996016
Table F(0.6)
With Interest at 0.6% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.998507 0.997761 0.997263 1 2 0.999502 0.998009 0.997263 0.996766 2 3 0.999003 0.997512 0.996766 3 4 0.998506 0.997015 0.996270 4 5 0.998008 0.996518 5 6 0.997511 0.996021 6 7 0.997013 0.995525 7 8 0.996517 8 9 0.996020 9 10 0.995523 10 11 0.995027 11 12 0.994531 12 — 0.994036
March 9, 2009 656 2009–10 I.R.B.
Table F(0.8)
With Interest at 0.8% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.998012 0.997019 0.996357 1 2 0.999336 0.997349 0.996357 0.995696 2 3 0.998673 0.996687 0.995696 3 4 0.998010 0.996026 0.995035 4 5 0.997347 0.995365 5 6 0.996685 0.994704 6 7 0.996024 0.994044 7 8 0.995363 8 9 0.994702 9 10 0.994042 10 11 0.993382 11 12 0.992722 12 — 0.992063
Table F(1.0)
With Interest at 1.0% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.997519 0.996279 0.995454 1 2 0.999171 0.996692 0.995454 0.994629 2 3 0.998343 0.995866 0.994629 3 4 0.997516 0.995040 0.993804 4 5 0.996689 0.994216 5 6 0.995863 0.993391 6 7 0.995037 0.992568 7 8 0.994212 8 9 0.993388 9 10 0.992565 10 11 0.991742 11 12 0.990920 12 — 0.990099
2009–10 I.R.B. 657 March 9, 2009
Table F(1.2)
With Interest at 1.2% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.997027 0.995542 0.994554 1 2 0.999006 0.996036 0.994553 0.993565 2 3 0.998014 0.995047 0.993565 3 4 0.997022 0.994058 0.992578 4 5 0.996032 0.993070 5 6 0.995042 0.992084 6 7 0.994053 0.991098 7 8 0.993066 8 9 0.992079 9 10 0.991093 10 11 0.990109 11 12 0.989125 12 — 0.988142
Table F(1.4)
With Interest at 1.4% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.996536 0.994807 0.993656 1 2 0.998842 0.995382 0.993656 0.992505 2 3 0.997686 0.994230 0.992505 3 4 0.996530 0.993079 0.991356 4 5 0.995376 0.991929 5 6 0.994224 0.990780 6 7 0.993073 0.989633 7 8 0.991923 8 9 0.990774 9 10 0.989627 10 11 0.988481 11 12 0.987337 12 — 0.986193
March 9, 2009 658 2009–10 I.R.B.
Table F(1.6)
With Interest at 1.6% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.996047 0.994075 0.992761 1 2 0.998678 0.994731 0.992761 0.991449 2 3 0.997358 0.993416 0.991449 3 4 0.996040 0.992103 0.990138 4 5 0.994723 0.990791 5 6 0.993408 0.989481 6 7 0.992095 0.988173 7 8 0.990783 8 9 0.989474 9 10 0.988166 10 11 0.986859 11 12 0.985555 12 — 0.984252
Table F(1.8)
With Interest at 1.8% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.995560 0.993345 0.991870 1 2 0.998514 0.994081 0.991869 0.990396 2 3 0.997031 0.992604 0.990396 3 4 0.995550 0.991130 0.988924 4 5 0.994071 0.989657 5 6 0.992594 0.988187 6 7 0.991120 0.986719 7 8 0.989647 8 9 0.988177 9 10 0.986709 10 11 0.985243 11 12 0.983780 12 — 0.982318
2009–10 I.R.B. 659 March 9, 2009
Table F(2.0)
With Interest at 2.0% Factors for Computing Adjusted Payout Rates for Unitrust Valuations
Number of Months by Which
By Which Valuation Date Precedes First Payment in
First Full Taxable Year
At Least Less Than
Annual
Period
For Payments Made During Each Period
Semiannual
Period
Quarterly
Period
Monthly
Period
0 1 1.000000 0.995074 0.992617 0.990981 1 2 0.998351 0.993433 0.990980 0.989347 2 3 0.996705 0.991795 0.989346 3 4 0.995062 0.990160 0.987715 4 5 0.993421 0.988527 5 6 0.991783 0.986897 6 7 0.990148 0.985270 7 8 0.988515 8 9 0.986885 9 10 0.985258 10 11 0.983633 11 12 0.982011 12 — 0.980392
Section 6050W(d)(1)(A) provides that a “participating payee” means: (i) in the case of a payment card transaction, any person who accepts a payment card as payment; and (ii) in the case of a third party network transaction, any person who accepts payment from a third party settlement organization in settlement of such transaction. Section 6050W(d)(1)(C) provides that “person” includes any governmental unit (and any agency or instrumentality thereof). However, section 6050W(d)(1)(B) provides that a “participating payee” does not include any person with a foreign address except as provided by the Secretary in regulations or other guidance.
With respect to reporting on payment card transactions, section 6050W(b)(2) provides that the term “merchant acquiring entity” means the bank or other organization with the contractual obligation to make payment to participating payees in settlement of payment card transactions. Section 6050W(c)(2) provides that a “payment card transaction” means any transaction in which a payment card is accepted as payment. Section 6050W(d)(2) defines “payment card” as any card that is issued pursuant to an agreement or arrangement that provides for: (A) one or more issuers of such cards; (B) a network of persons unrelated to each other, and
Information Reporting of Payments Made in Settlement of Payment Card and Third Party Network Transactions
Notice 2009–19
PURPOSE
This notice invites public comments regarding guidance to be provided to payment settlement entities and other affected persons concerning new requirements with respect to the reporting of payments made in settlement of payment card and third party network transactions. The new reporting requirements are in section 6050W of the Internal Revenue Code (the Code), which was added by section 3091 of the Housing Assistance Tax Act of 2008, Div. C of Pub. L. No. 110–289, 122 Stat. 2653 (the Act). Section 6050W requires information returns to be made for each calendar year by merchant acquiring entities and third party settlement organizations with respect to payments made in settlement of payment card transactions and third party payment network transactions occurring in that calendar year. This requirement to make information returns ap
plies to returns for calendar years beginning after December 31, 2010.
The Treasury Department and the Internal Revenue Service (the Service) intend to issue guidance on compliance with the new reporting requirements. To assist them in drafting guidance under the new provisions, they are requesting comments from all affected persons.
BACKGROUND
Under new section 6050W, any payment settlement entity making payment to a participating payee in settlement of reportable payment transactions must make a return for each calendar year to be filed with the Service, and furnish a statement to the participating payee, setting forth the gross amount of such reportable payment transactions, as well as the name, address, and taxpayer identification number (TIN) of the participating payees.
Section 6050W(c) provides that a “reportable payment transaction” means any payment card transaction and any third party network transaction. Section 6050W(b)(1) provides that a “payment settlement entity” means: (A) in the case of a payment card transaction, a merchant acquiring entity; and (B) in the case of a third party network transaction, a third party settlement organization.
March 9, 2009 660 2009–10 I.R.B.
payees under other provisions of the Code; 3. What foreign entities, if any, should be included in the definition of “payment settlement entity”; 4. What persons with foreign addresses, if any, should be included in the definition of “participating payee”; 5. How to interpret the statutory definition and scope of “payment card”; 6. How to interpret the statutory definition and scope of “third party payment network”; 7. Whether the “gross amount” of the reportable payment transaction should be defined as “gross receipts or sales” or whether adjustments should be made for credits, cash equivalents, discount amounts, fees, refunded amounts, or other amounts; 8. How to administer the reporting requirements so as to prevent reporting of the same transaction more than once; 9. How to address differences between section 6050W reporting and payee reporting on Forms 1040, 1065, or 1120, particularly when timing differences arise, for example, between calendar reporting years and fiscal taxable years, and the potential appropriateness of annual information returns from payment settlement entities that either segregate monthly “gross amounts” or reflect the taxable year of the participating payee; and 10. What document retention and other verification requirements should apply to reporting entities and what information should be captured for purposes of substantiating the payments reported.
Interested parties are invited to submit comments on this notice by Wednesday, March 18, 2009. Written comments should be submitted to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2009–19), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2009–19), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C. Comments may also be transmitted electronically
to the issuer, who agree to accept such cards as payment; and (C) standards and mechanisms for settling the transactions between the merchant acquiring entities and the persons who agree to accept such cards as payment.
Section 6050W(c)(3) provides that the term “third party network transaction” means any transaction that is settled through a third party payment network. Section 6050W(d)(3) defines “third party payment network” as any agreement or arrangement that: (A) involves the establishment of accounts with a central organization by a substantial number of persons who (i) are unrelated to such organization, (ii) provide goods or services, and (iii) have agreed to settle transactions for the provision of such goods or services pursuant to such agreement or arrangement; (B) provides for standards and mechanisms for settling such transactions; and (C) guarantees persons providing goods or services pursuant to such agreement or arrangement that such persons will be paid for providing such goods or services. In the case of a third party network transaction, section 6050W(b)(1)(B) provides that the payment settlement entity is the “third party settlement organization,” which is defined in section 6050W(b)(3) as the central organization that has the contractual obligation to make payment to participating payees of third party network transactions.
Section 6050W(d)(3) provides that a third party payment network does not include any agreement or arrangement that provides for the issuance of payment cards. In addition, section 6050W(e) provides that a third party settlement organization is required to report with respect to third party network transactions of any participating payee only if (1) the aggregate amount with respect to such third party network transactions for the year that would otherwise be reported exceeds $20,000, and (2) the aggregate number of such transactions exceeds 200.
Additionally, section 6050W(b)(4)(A) imposes reporting requirements on intermediaries who receive payments from a payment settlement entity and distribute such payments to one or more participating payees. Under section 6050W(b)(4)(A), such intermediaries are treated (i) as participating payees with respect to the payment settlement entity, and (ii) as payment
settlement entities with respect to the participating payees to whom the intermediary distributes payments. However, under section 6050W(b)(4)(B), if an electronic payment facilitator or other third party makes payments in settlement of reportable payment transactions on behalf of the payment settlement entity, the electronic payment facilitator or other third party must file the annual information return in lieu of the payment settlement entity.
The Act also amended section 3406(b)(3) to provide that reportable payment transactions subject to information reporting under section 6050W generally are subject to backup withholding requirements. In addition, the Act amended section 6724(d) by adding returns required by section 6050W to the definition of information returns for purposes of penalties for failure to comply with certain information reporting requirements.
Section 6050W(g) grants authority to the Secretary to issue guidance to implement the reporting requirement, including rules to prevent the reporting of the same transaction more than once. Section 6050W and the related amendment to section 6724(d) generally apply to returns for calendar years beginning after December 31, 2010. The amendments to the backup withholding requirements apply to amounts paid after December 31, 2011.
REQUEST FOR PUBLIC COMMENTS
The Treasury Department and the Service request comments on issues that should be addressed in guidance implementing the new requirements with respect to the reporting of payments made in settlement of payment card and third party network transactions. The Treasury Department and the Service request specific comments regarding:
- Whether the Form 1099 series is appropriate for Section 6050W reporting and whether the time and manner of reporting to the Service should conform to existing practices for information reporting to the Service under other provisions of the Code;
- Whether procedures for electronic reporting to payees, under section 6050W(f), should conform to existing procedures for electronic reporting to
2009–10 I.R.B. 661 March 9, 2009
tion). For further information regarding this notice, please contact Barbara Pettoni at (202) 622–4910 (not a toll-free call).
via the following e-mail address: Notice.Comments@irscounsel.treas.gov. Please include “Notice 2009–19” in the subject line of any electronic communications. All comments will
be available for public inspection and copying.
The principal author of this notice is Barbara Pettoni of the Office of Associate Chief Counsel (Procedure & Administra
March 9, 2009 662 2009–10 I.R.B.
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