IRS Releases October AFRs

Revenue Ruling 2011-22 provides various prescribed rates for October 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 1.4 percent.

The AFRs are as follows:

Short-Term:

• Annual:                     .16 percent
  
• Semi-Annual:            .16 percent         
• Quarterly:                 .16 percent
  
• Monthly:                   .16 percent
  

Mid-Term:

• Annual:                    1.19 percent
  
• Semi-Annual:            1.19 percent
  
• Quarterly:                 1.19 percent
  
• Monthly:                   1.19 percent
  

Long-Term:

• Annual:                     2.95 percent
  
• Semi-Annual:            2.93 percent
  
• Quarterly:                 2.92 percent
  
• Monthly:                   2.91 percent

See Rev. Rul. 2011-22 (Sept. 19, 2011).

Posted by William Alan Nelson II, Associate Editor, Wealth Strategies Journal.