Rev. Rul. 2020-22

This revenue ruling provides various prescribed rates for federal income tax

purposes for November 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. 2020-22 TABLE 1 Applicable Federal Rates (AFR) for November 2020

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 0.13% 0.13% 0.13% 0.13% 110% AFR 0.14% 0.14% 0.14% 0.14% 120% AFR 0.16% 0.16% 0.16% 0.16% 130% AFR 0.17% 0.17% 0.17% 0.17% Mid-term AFR 0.39% 0.39% 0.39% 0.39% 110% AFR 0.43% 0.43% 0.43% 0.43% 120% AFR 0.47% 0.47% 0.47% 0.47% 130% AFR 0.51% 0.51% 0.51% 0.51% 150% AFR 0.59% 0.59% 0.59% 0.59% 175% AFR 0.68% 0.68% 0.68% 0.68% Long-term AFR 1.17% 1.17% 1.17% 1.17% 110% AFR 1.29% 1.29% 1.29% 1.29% 120% AFR 1.40% 1.40% 1.40% 1.40% 130% AFR 1.53% 1.52% 1.52% 1.52%

REV. RUL. 2020-22 TABLE 2 Adjusted AFR for November 2020

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 0.10% 0.10% 0.10% 0.10% Mid-term adjusted AFR 0.30% 0.30% 0.30% 0.30% Long-term adjusted AFR 0.89% 0.89% 0.89% 0.89%

Bulletin No. 2020–45 963 November 2, 2020

REV. RUL. 2020-22 TABLE 3 Rates Under Section 382 for November 2020 Adjusted federal long-term rate for the current month .89% 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. 2020-22 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for November 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 7.18% Appropriate percentage for the 30% present value low-income housing credit 3.08%

REV. RUL. 2020-22 TABLE 5 Rate Under Section 7520 for November 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

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

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 November 2020. See Rev. Rul. 2020-22, page 963.

Section 467.—Certain Payments for the Use of Property or Services

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The applicable federal short-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 482.—Allocation of Income and Deductions Among Taxpayers

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 483.—Interest on Certain Deferred Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

Section 7872.—Treatment of Loans With Below- Market Interest Rates

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2020. See Rev. Rul. 2020-22, page 963.

November 2, 2020 964 Bulletin No. 2020–45

regulations, require the employer maintaining a plan from which designated distributions (as defined in § 3405(e)(1)) may be made, or the plan administrator of that plan, to make returns and reports regarding the plan. However, no such return or report may be required with respect to distributions to any person during any year unless the distributions aggregate $10 or more.

Form 1099‑R, Distributions From Pen- sions, Annuities, Retirement or Profit-Shar- ing Plans, IRAs, Insurance Contracts, etc., is used to satisfy the reporting obligations under § 6047(d). Under the 2020 instructions to Form 1099‑R, a Form 1099-R must be filed for each person to whom a designated distribution of $10 or more has been made, and the total amount of the distribution (before income tax or other withholding) must be reported in Box 1 of that form. In addition, under those instructions, the federal income tax withheld must be reported in Box 4 of the Form 1099-R.

The Plan X payment of Individual C’s accrued benefit, including both the amount sent to the State J unclaimed property fund and the amount withheld, is a designated distribution under § 3405(e)(1) that exceeds the reporting threshold. Accordingly, Employer M is required to report that designated distribution in Box 1, and the federal income tax withheld in Box 4, of the Form 1099-R for 2020.

HOLDINGS

(1) The payment of Individual C’s accrued benefit from Plan X is subject to federal income tax withholding under § 3405.

(2) The payment from Plan X is subject to reporting under § 6047.

TRANSITION RELIEF

A person will not be treated as failing to comply with the withholding and reporting requirements described in this revenue ruling with respect to payments made before the earlier of January 1, 2022, or the date it becomes reasonably practicable for the person to comply with those requirements.

Section 3405.—Special Rules for Pensions, Annuities, and Certain Other Deferred Income

(Also, § 6047)