IRS Releases August AFRs

Revenue Ruling 2011-16 provides various prescribed rates for August 2011 for federal income tax purposes.  These include the applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section 1274 of the Internal Revenue Code.

The section 7520 rate is 2.2 percent.

The AFRs are as follows:

Short-Term:

• Annual:                     .32 percent
  
• Semi-Annual:            .32 percent         
• Quarterly:                 .32 percent
  
• Monthly:                   .32 percent
  

Mid-Term:

• Annual:                    1.90 percent
  
• Semi-Annual:            1.89 percent
  
• Quarterly:                 1.89 percent
  
• Monthly:                   1.88 percent
  

Long-Term:

• Annual:                    3.86 percent
  
• Semi-Annual:            3.82 percent
  
• Quarterly:                 3.80 percent
  
• Monthly:                   3.79 percent

See Rev. Rul. 2011-16 (Aug. 8, 2011).

Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.