Rev. Rul. 2020-16 — Internal Revenue Bulletin 2020-37

This revenue ruling provides various prescribed rates for federal income tax

purposes for September 2020 (the current month). Table 1 contains the shortterm, 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 appropri

ate 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. 2020-16 TABLE 1 Applicable Federal Rates (AFR) for September 2020

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 0.14% 0.14% 0.14% 0.14% 110% AFR 0.15% 0.15% 0.15% 0.15% 120% AFR 0.17% 0.17% 0.17% 0.17% 130% AFR 0.18% 0.18% 0.18% 0.18% Mid-term AFR 0.35% 0.35% 0.35% 0.35% 110% AFR 0.39% 0.39% 0.39% 0.39% 120% AFR 0.42% 0.42% 0.42% 0.42% 130% AFR 0.46% 0.46% 0.46% 0.46% 150% AFR 0.53% 0.53% 0.53% 0.53% 175% AFR 0.61% 0.61% 0.61% 0.61% Long-term AFR 1.00% 1.00% 1.00% 1.00% 110% AFR 1.10% 1.10% 1.10% 1.10% 120% AFR 1.20% 1.20% 1.20% 1.20% 130% AFR 1.30% 1.30% 1.30% 1.30%

REV. RUL. 2020-16 TABLE 2 Adjusted AFR for September 2020

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 0.11% 0.11% 0.11% 0.11% Mid-term adjusted AFR 0.27% 0.27% 0.27% 0.27% Long-term adjusted AFR 0.76% 0.76% 0.76% 0.76%

September 8, 2020 550 Bulletin No. 2020–37

REV. RUL. 2020-16 TABLE 3 Rates Under Section 382 for September 2020 Adjusted federal long-term rate for the current month .76% Long-term tax-exempt rate for ownership changes during the current month (the highest of .89% the adjusted federal long-term rates for the current month and the prior two months.)

REV. RUL. 2020-16 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for September 2020 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 7.15% Appropriate percentage for the 30% present value low-income housing credit 3.07%

REV. RUL. 2020-16 TABLE 5 Rate Under Section 7520 for September 2020 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%

Section 42.—Low-Income Housing Credit