Rev. Rul. 2023-5

This revenue ruling provides various prescribed rates for federal income tax

purposes for March 2023 (the current month). Table 1 contains the shortterm, mid-term, and long-term applica­ ble 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 feder­ al 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. How­ ever, under section 42(b)(2), the appli­ cable percentage for non-federally sub­ sidized 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. 2023-5 TABLE 1 Applicable Federal Rates (AFR) for March 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 4.50% 4.45% 4.43% 4.41% 110% AFR 4.96% 4.90% 4.87% 4.85% 120% AFR 5.41% 5.34% 5.30% 5.28% 130% AFR 5.87% 5.79% 5.75% 5.72% Mid-term AFR 3.70% 3.67% 3.65% 3.64% 110% AFR 4.08% 4.04% 4.02% 4.01% 120% AFR 4.45% 4.40% 4.38% 4.36% 130% AFR 4.83% 4.77% 4.74% 4.72% 150% AFR 5.59% 5.51% 5.47% 5.45% 175% AFR 6.52% 6.42% 6.37% 6.34% Long-term AFR 3.74% 3.71% 3.69% 3.68% 110% AFR 4.12% 4.08% 4.06% 4.05% 120% AFR 4.50% 4.45% 4.43% 4.41% 130% AFR 4.88% 4.82% 4.79% 4.77%

REV. RUL. 2023-5 TABLE 2 Adjusted AFR for March 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 3.41% 3.38% 3.37% 3.36% Mid-term adjusted AFR 2.81% 2.79% 2.78% 2.77% Long-term adjusted AFR 2.84% 2.82% 2.81% 2.80%

Bulletin No. 2023–10 503 March 6, 2023

REV. RUL. 2023-5 TABLE 3 Rates Under Section 382 for March 2023 Adjusted federal long-term rate for the current month 2.84% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal 2.92% long-term rates for the current month and the prior two months.)

REV. RUL. 2023-5 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for March 2023 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 7.86% Appropriate percentage for the 30% present value low-income housing credit 3.37%

REV. RUL. 2023-5 TABLE 5 Rate Under Section 7520 for March 2023 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

4.40%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2023. See Rev. Rul. 2023-5, page 503.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

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

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of March 2023. See Rev. Rul. 2023-5, page 503.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of March 2023. See Rev. Rul. 2023-5, page 503.

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 March 2023. See Rev. Rul. 2023-5, page 503.

March 6, 2023 504 Bulletin No. 2023–10