Rev. Rul. 2023-16

This revenue ruling provides various prescribed rates for federal income tax

purposes for September 2023 (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 shortterm, 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. 2023-16 TABLE 1 Applicable Federal Rates (AFR) for September 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 5.12% 5.06% 5.03% 5.01% 110% AFR 5.65% 5.57% 5.53% 5.51% 120% AFR 6.16% 6.07% 6.02% 5.99% 130% AFR 6.69% 6.58% 6.53% 6.49% Mid-term AFR 4.19% 4.15% 4.13% 4.11% 110% AFR 4.62% 4.57% 4.54% 4.53% 120% AFR 5.04% 4.98% 4.95% 4.93% 130% AFR 5.47% 5.40% 5.36% 5.34% 150% AFR 6.33% 6.23% 6.18% 6.15% 175% AFR 7.39% 7.26% 7.20% 7.15% Long-term AFR 4.19% 4.15% 4.13% 4.11% 110% AFR 4.62% 4.57% 4.54% 4.53% 120% AFR 5.04% 4.98% 4.95% 4.93% 130% AFR 5.47% 5.40% 5.36% 5.34%

REV. RUL. 2023-16 TABLE 2 Adjusted AFR for September 2023

Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 3.88% 3.84% 3.82% 3.81% Mid-term adjusted AFR 3.17% 3.15% 3.14% 3.13% Long-term adjusted AFR 3.17% 3.15% 3.14% 3.13%

September 11, 2023 796 Bulletin No. 2023–37

REV. RUL. 2023-16 TABLE 3 Rates Under Section 382 for September 2023 Adjusted federal long-term rate for the current month 3.17% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal 3.17% long-term rates for the current month and the prior two months.)

REV. RUL. 2023-16 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for September 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 7.97% Appropriate percentage for the 30% present value low-income housing credit 3.42%

REV. RUL. 2023-16 TABLE 5 Rate Under Section 7520 for September 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

5.00%

Section 42.—Low-Income Housing Credit

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of September 2023. See Rev. Rul. 2023-16, page 796.

Section 280G.—Golden Parachute Payments

The applicable federal short-term, mid-term, and long-term rates are set forth for the month of September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

Section 7520.—Valuation Tables

The applicable federal mid-term rates are set forth for the month of September 2023. See Rev. Rul. 2023-16, page 796.

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 September 2023. See Rev. Rul. 2023-16, page 796.

Bulletin No. 2023–37 797 September 11, 2023

Section 6621.— Determination of Rate of Interest

26 CFR 301.6621-1: Interest rate.