Td 9746

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
T.D. 9746
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1

Payout Requirements for
Type III Supporting
Organizations That Are Not
Functionally Integrated
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal
of temporary regulations.
SUMMARY: This document contains final regulations regarding the distribution
requirement for non-functionally integrated Type III supporting organizations.
The regulations reflect changes to the law
made by the Pension Protection Act of
2006. The regulations will affect nonfunctionally integrated Type III supporting organizations and their supported
organizations.
DATES: Effective Date: These regulations are effective on December 21, 2015.
FOR FURTHER INFORMATION
CONTACT: Jonathan Carter at (202) 3174394 or Mike Repass at (202) 317-6176
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
1. Overview
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) regarding organizations described
in section 509(a)(3) of the Internal Revenue Code (Code). An organization described in section 501(c)(3) is classified as
either a private foundation or a public
charity. To be classified as a public charity, an organization must be described in
section 509(a)(1), (2), or (3). Organizations described in section 509(a)(3) are
known as “supporting organizations.”

Bulletin No. 2016 –14

Supporting organizations achieve their
public charity status by supporting one or
more organizations described in section
509(a)(1) or (2), which in this context are
referred to as “supported organizations.”
To be described in section 509(a)(3),
an organization must satisfy (1) an organizational test, (2) an operational test, (3)
a relationship test, and (4) a disqualified
person control test. The organizational
and operational tests require that a supporting organization be organized and at
all times thereafter operated exclusively
for the benefit of, to perform the functions
of, or to carry out the purposes of one or
more supported organizations. The relationship test requires a supporting organization to establish one of three types of
relationships with one or more supported
organizations. Finally, the disqualified person control test requires that a supporting
organization not be controlled directly or
indirectly by certain disqualified persons.
Each of the described tests is a necessary requirement for an organization to
establish that it qualifies as a supporting
organization. These final regulations,
however, focus primarily on the relationship test for supporting organizations
that are “operated in connection with”
their supporting organization(s), otherwise known as “Type III” supporting organizations. Specifically, the final regulations reflect statutory changes enacted by
the Pension Protection Act of 2006, P.L.
109 –280 (120 Stat. 780 (2006) (PPA)).
Section 1241(d)(1) of the PPA directed
the Secretary of the Treasury to promulgate regulations under section 509 that
establish a new distribution requirement
for Type III supporting organizations that
are not “functionally integrated” to ensure
that a “significant amount” is paid to supported organizations. For this purpose, the
term “functionally integrated” means a
Type III supporting organization that is
not required under Treasury regulations to
make payments to supported organizations because the supporting organization
engages in activities that relate to performing the functions of, or carrying out
the purposes of, its supported organization(s). These final regulations address the

515

amount that a Type III supporting organization that is not functionally integrated (a
non-functionally integrated (NFI) Type III
supporting organization) must annually
distribute to its supported organization(s).
2. Prior Rulemaking
On August 2, 2007, the Treasury Department and the IRS published in the Federal
Register (72 FR 42335) an advance notice
of proposed rulemaking (ANPRM) (REG–
155929 – 06) in response to the PPA. The
ANPRM described proposed rules to implement the changes made by the PPA to the
Type III supporting organization requirements and solicited comments regarding
those proposed rules.
On September 24, 2009, the Treasury
Department and the IRS published in the
Federal Register (74 FR 48672) a notice
of proposed rulemaking (the 2009 NPRM)
(REG–155929 – 06). The 2009 NPRM
contained proposed regulations (the 2009
proposed regulations) setting forth the requirements to qualify as a Type III supporting organization under the PPA.
On December 28, 2012, the Treasury
Department and the IRS published in the
Federal Register (77 FR 76382) a Treasury decision (TD 9605) containing final
and temporary regulations (the 2012 TD)
regarding the requirements to qualify as a
Type III supporting organization. Based
on the comments received, the 2012 TD
made certain changes to the rules proposed in the 2009 NPRM, included in the
temporary regulations significant changes
to the distribution requirement, and reserved certain topics for further consideration. The 2012 TD was effective and
applicable on December 28, 2012. The
applicability of the temporary regulations
expires on or before December 21, 2015.
On December 28, 2012, the Treasury Department and the IRS also published in the
Federal Register (77 FR 76426) a notice
of proposed rulemaking (the 2012 NPRM)
(REG–155929 – 06) that incorporated the
text of the temporary regulations in the
2012 TD by cross-reference. The IRS received five comments on the 2012 NPRM.
The comments were considered in devel-

April 4, 2016

oping these final regulations and are available for public inspection at www.regulations.gov or upon request. No public
hearing was requested.
Under the 2012 TD, an NFI Type III
supporting organization must annually
distribute to or for the use of one or more
supported organizations an amount equaling or exceeding the supporting organization’s “distributable amount” for the taxable year. See § 1.509(a)– 4(i)(5)(ii). The
temporary regulations contained in the
2012 TD defined an NFI Type III supporting organization’s “distributable amount”
as equal to the greater of (1) 85 percent of
the supporting organization’s adjusted net
income or (2) its “minimum asset amount,”
in each case for the immediately preceding
taxable year. The temporary regulations defined “minimum asset amount” as 3.5 percent of the excess of the aggregate fair market value of the supporting organization’s
non-exempt-use assets over the acquisition
indebtedness with respect to such nonexempt use assets. Additionally, the temporary
regulations provided that the determination
of the aggregate fair market value of an NFI
Type III supporting organization’s nonexempt-use assets would be made using the
valuation methods generally applicable to private foundations under § 53.4942(a)–2(c). The
temporary regulations also provided that,
consistent with the private foundation
rules, the “non-exempt use” assets of a
supporting organization do not include
certain investment assets described in
§ 53.4942(a)–2(c)(2) or assets used (or
held for use) to carry out the exempt purposes of the supported organization(s) (as
determined by applying the principles described in § 53.4942(a)–2(c)(3)).
After consideration of all the comments received in response to the 2012
NPRM, this Treasury decision adopts the
2012 NPRM without change, except to (1)
conform the provision regarding the valuation of non-exempt-use assets to the
section 4942 regulation provision that it
cross-references (§ 53.4942(a)–2(c)(2)),
and (2) replace references in § 1.509(a)– 4
to the temporary regulations with references to these final regulations. Thus,
other than the change conforming the provision in the final regulations regarding
the valuation of non-exempt-use assets to
the provision in the section 4942 regulations, these final regulations are the same

April 4, 2016

as the temporary regulations that have
been applicable to Type III supporting
organizations since December 28, 2012.
Additionally, this Treasury decision removes the temporary regulations.
The Treasury Department and the IRS
intend to publish a notice of proposed
rulemaking for Type III supporting organizations in the near future. Among other
proposals, the new proposed regulations
would make one change to these final
regulations. Specifically, the new proposed regulations will propose removal of
the provision in these final regulations that
reduces the distributable amount by the
amount of taxes subtitle A of the Code
imposes on a supporting organization during the immediately preceding taxable year.
In addition, the new proposed regulations
will propose specific rules regarding the requirements for Type III supporting organizations that support governmental supported
organizations to be treated as functionally
integrated Type III supporting organizations. In addition, the new proposed regulations would provide transition relief beyond
the period provided in Notice 2014 – 4,
2014 –2 IRB 274. Supporting organizations
may continue to rely on the transitional rule
described in Section 3.01 of Notice 2014 – 4
until the date that the notice of proposed
rulemaking prescribing the new proposed
regulations under § 1.509(a)– 4(i)(4)(iv) is
published in the Federal Register. In the
notice of proposed rulemaking publishing
the new proposed regulations, the Treasury
Department and the IRS will request comments on all proposed changes.
Explanation of Provisions and
Summary of Comments
This section discusses the comments
received in response to the 2012 NPRM.
1. Distributable Amount
The PPA directed the promulgation of
Treasury regulations requiring NFI Type
III supporting organizations to make distributions of a percentage of either income
or assets to their supported organizations
to ensure that a significant amount is paid
to those supported organizations. Under
the Treasury regulations in effect when
PPA was enacted, certain Type III supporting organizations were required to
distribute “substantially all” of their in-

516

come to one or more publicly supported
organizations. For this purpose, “substantially all” had the same meaning of 85 percent or more that it had in § 53.4942(b)–1(c)
(defining “substantially all” for purposes of
the income test for private operating foundations). See Rev. Rul. 76 –208, 1976 –1
C.B. 161.
The 2009 NPRM had proposed to replace the income-based distribution requirement with an asset-based distribution
requirement of 5 percent of the fair market
value of an organization’s non-exemptuse assets. In response to comments, the
2012 NPRM instead proposed to keep the
historic income-based distribution requirement, and proposed to combine it
with a reduced percentage-of-assets distribution requirement. Therefore, the temporary and proposed distributable amount
for NFI Type III supporting organizations
was the greater of 85 percent of adjusted
net income or 3.5 percent of the net fair
market value of non-exempt-use assets, in
each case as determined for the immediately preceding taxable year.
One commenter stated that a distribution requirement based on 3.5 percent of
assets is sufficient to achieve the goals of
Congress and that the distribution requirement based on 85 percent of income
should be removed. The commenter stated
that a distribution requirement based on
income would prevent a supporting organization from smoothing its returns in
high-earning years with low-earning
years, and could result in organizations
shifting investments away from incomeproducing assets toward appreciating assets to avoid erosion of an endowment
even if that investment strategy results in
forgoing higher returns. The commenter
also said that having two tests increases
administrative costs for a supporting organization by requiring it to make two
calculations rather than one to determine
its distributable amount, thus reducing the
amount distributed for true charitable purposes. Another commenter suggested that
organizations that were not previously identified as avoiding the prior substantially-allof-income distribution requirement should
be exempted from the asset-based distribution requirement because it potentially
harms entities that are invested primarily in
non-liquid assets.

Bulletin No. 2016 –14

The Treasury Department and the IRS
believe that a distribution requirement
equal to the greater of 85 percent of adjusted net income or 3.5 percent of the net
fair market value of an organization’s
non-exempt-use assets strikes an appropriate balance. It ensures that NFI Type III
supporting organizations distribute significant amounts to their supported organizations, as Congress directed in the PPA.
Further, the 85 percent of income test will
make it more likely that supported organizations will timely benefit from higher
returns received by their supporting organizations. Conversely, in years with lower
returns or for organizations that invest in
assets that produce largely appreciation
rather than income, a 3.5-percent of assets
distribution requirement will apply, which
is less than the 5-percent of assets distribution requirement that applies to private
non-operating foundations. With respect
to the suggestion that certain organizations be permitted to comply only with the
income-based distribution requirement,
the Treasury Department and the IRS believe it would be inequitable and administratively difficult to apply one requirement to some NFI Type III supporting
organizations but another requirement to
others.
Therefore, the final regulations adopt
the annual distributable amount rule of the
2012 NPRM without changes.
2. Income from Distributions from
Subsidiary
The 2012 NPRM provided that, for
purposes of the calculation of the annual
distributable amount, a supporting organization’s adjusted net income would be
determined using the principles of section
4942(f) and § 53.4942(a)–2(d). These provisions apply the principles of subtitle A
of the Code.
One commenter requested that the definition of adjusted net income exclude
dividend income resulting from a distribution of long-term capital gain property to a
supporting organization by a corporate
subsidiary. The commenter noted that
without this exclusion, the receipt of distributed property could result in a much
higher distribution requirement for that
one year, but without producing any liquid

Bulletin No. 2016 –14

assets to satisfy the higher distribution
requirement.
The 2012 NPRM provided that adjusted net income be determined by applying the principles that apply in calculating the adjusted net income of private
operating foundations under sections
4942(d) and 4942(j)(3) and are generally
based on long-standing principles under
subtitle A of the Code. The Treasury Department and the IRS believe that the rules
for calculating adjusted net income should
be applied consistently for all taxpayers
and do not believe that there is a justification for the rules to be altered solely for
supporting organizations. Therefore, the
final regulations do not adopt this comment.
3. Real Property Valuations
The 2012 NPRM provided that for purposes of determining the distributable
amount for a taxable year, non-exempt-use
assets would be valued using the principles
generally applicable to private foundations
under § 53.4942(a)–2(c). One commenter
suggested allowing the use of state property
tax valuations for purposes of valuing real
property under § 53.4942(a)–2(c).
Section 53.4942(a)–2(c) applies the
principles of regulations under section
2031, which generally apply for estate tax
purposes, to the valuation of real property.
Section 20.2031–1(b) provides that the
value at which property is assessed for
local tax purposes may be considered only
if that value represents the fair market
value as of the valuation date. Section
20.2031–3 further provides that if real
property is leased or otherwise used in a
business, special valuation rules may
apply. The Treasury Department and the
IRS continue to believe that the same
valuation principles that apply to private
foundations should apply to NFI Type
III supporting organizations. Therefore,
the final regulations do not adopt this
comment.
Effective Date

Statement of Availability of IRS
Documents
The IRS Notice 2014 – 4 cited in this
preamble is published in the Internal Revenue Bulletin and is available from the
Superintendent of Documents, U.S. Government Printing Office, Washington, DC
20402, or by visiting the IRS Web site at
http://www.irs.gov.
Special Analyses
Certain IRS regulations, including this
one, are exempt from the requirements of
Executive Order 12866, as supplemented
and reaffirmed by Executive Order 13563.
Therefore, a regulatory impact assessment
is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations, and
because these regulations do not impose a
collection of information on small entities,
a Regulatory Flexibility Analysis under
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f) of the Code, the temporary
and proposed regulations preceding these
final regulations were submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
their impact on small business, and no
comments were received.
Drafting Information
The principal authors of these regulations are Mike Repass and Jonathan
Carter, Office of Associate Chief Counsel
(Tax-Exempt and Government Entities).
However, other personnel from the Treasury Department and the IRS participated
in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES

These regulations are effective on December 21, 2015.

517

Paragraph 1. The authority citation for
part 1 continues to read in part as follows:

April 4, 2016

Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.509(a)– 4 is amended
by:
1. Amending the second sentence of paragraph (i)(4)(ii)(C) to remove the language “§ 1.509(a)– 4T(i)(8)(ii)” and adding “paragraph (i)(8)(ii) of this section”
in its place.
2. Amending paragraph (i)(5)(ii)(A)
to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
3. Revising paragraph (i)(5)(ii)(B).
4. Revising paragraph (i)(5)(ii)(C).
5. Amending the last sentence of paragraph (i)(5)(ii)(D) to remove the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and
adding “paragraph (i)(5)(ii)(B) of this
section” in its place.
6. Amending the first sentence of Example 1 of paragraph (i)(5)(iii)(D) to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
7. Amending the first sentence of Example 2 of paragraph (i)(5)(iii)(D) to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
8. Amending the third sentence of Example 3 of paragraph (i)(5)(iii)(D) to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
9. Amending the fourth sentence of Example 4 of paragraph (i)(5)(iii)(D) to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
10. Amending paragraph (i)(6)(iv) to remove the language “§ 1.509(a)–
4T(i)(8)(ii)” and adding “paragraph
(i)(8)(ii) of this section” in its place.
11. Amending paragraph (i)(7)(ii) to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
12. Revising paragraph (i)(8).
13. Revising paragraph (l).
The revisions and additions read as follows:
§ 1.509(a)– 4 Supporting organizations.
*****
(i) * * *
(5) * * *

April 4, 2016

(ii) * * *
(B) Distributable amount. Except as
provided in paragraphs (i)(5)(ii)(D) and
(E) of this section, the distributable
amount for a taxable year is an amount
equal to the greater of 85 percent of the
supporting organization’s adjusted net income (as determined by applying the
principles of section 4942(f) and
§ 53.4942(a)–2(d) of this chapter) for the
taxable year immediately preceding the
taxable year of the required distribution
(immediately preceding taxable year) or
its minimum asset amount (as defined in
paragraph (i)(5)(ii)(C) of this section) for
the immediately preceding taxable year,
reduced by the amount of taxes imposed on
the supporting organization under subtitle A
of the Internal Revenue Code during the
immediately preceding taxable year.
(C) Minimum asset amount. For purposes of this paragraph (i)(5), a supporting
organization’s minimum asset amount for
the immediately preceding taxable year is
3.5 percent of the excess of the aggregate
fair market value of all of the supporting
organization’s non-exempt-use assets (determined under paragraph (i)(8) of this
section) in that immediately preceding
taxable year over the acquisition indebtedness with respect to such non-exemptuse assets (determined under section
514(c)(1) without regard to the taxable
year in which the indebtedness was incurred), increased by—
(1) Amounts received or accrued during the immediately preceding taxable
year as repayments of amounts which
were taken into account by the organization to meet the distribution requirement
imposed in this paragraph (i)(5)(ii) for any
taxable year;
(2) Amounts received or accrued during the immediately preceding taxable
year from the sale or other disposition of
property to the extent that the acquisition
of such property was taken into account
by the organization to meet the distribution requirement imposed in this paragraph (i)(5)(ii) for any taxable year; and
(3) Any amount set aside under paragraph (i)(6)(v) of this section to the extent
it is determined during the immediately
preceding taxable year that such amount is
not necessary for the purposes for which it
was set aside and such amount was taken
into account by the organization to meet

518

the distribution requirement imposed in
this paragraph (i)(5)(ii) for any taxable
year.
*****
(8) Valuation of non-exempt-use assets. For purposes of determining its distributable amount for a taxable year, a
supporting organization determines its
minimum asset amount, as defined in
paragraph (i)(5)(ii)(C) of this section, by
determining the aggregate fair market
value of all of its non-exempt-use assets in
the immediately preceding taxable year.
For these purposes, the determination of
the aggregate fair market value of all nonexempt-use assets shall be made using the
valuation
methods
described
in
§ 53.4942(a)–2(c) of this chapter. The aggregate fair market value of the supporting organization’s non-exempt-use assets
shall not be reduced by any amount that is
set aside under paragraph (i)(6)(v) of this
section. For these purposes, the nonexempt use assets of the supporting organization are all assets of the supporting
organization other than—
(i) Assets described in § 53.4942(a)–
2(c)(2)(i) through (iv) of this chapter
(with the term “supporting organization”
being substituted for “foundation” or “private foundation” and the date “August 17,
2006” being substituted for “December
31, 1969”); and
(ii) Exempt-use assets, which are assets
that are used (or held for use) directly in
carrying out the exempt purposes of the
supporting organization’s supported organization(s) (determined by applying the
principles described in § 53.4942(a)–
2(c)(3) of this chapter) by either—
(A) The supporting organization; or
(B) One or more supported organizations, but only if the supporting organization makes the asset available to the supported organization(s) at no cost (or
nominal rent) to the supported organization(s).
*****
(l) Effective/applicability dates. Paragraphs (a)(6), (f)(5), (i)(1) through
(i)(4)(ii)(B), (i)(4)(ii)(D) through (i)(5)(i),
(i)(5)(ii)(E) through (i)(5)(iii)(C), (i)(6)(i)
through (iii), (i)(6)(v) through (i)(7)(i),
and (i)(9) through (11) of this section are
applicable on December 28, 2012. Paragraphs (i)(4)(ii)(C), (i)(5)(ii)(A) through
(i)(5)(ii)(D), (i)(5)(iii)(D), (i)(6)(iv),

Bulletin No. 2016 –14

(i)(7)(ii) and (i)(8) of this section are applicable on December 21, 2015. See paragraphs (i)(5)(ii)(B), (i)(5)(ii)(C), and
(i)(8) of § 1.509(a)– 4T contained in 26
CFR part 1, revised as of April 1, 2015,
for certain rules regarding nonfunctionally integrated Type III supporting organizations effective before December 21, 2015.
*****
Section 1.509(a)– 4T [Removed].
Par. 3. Section 1.509(a)– 4T is removed.

John Dalrymple
Deputy Commissioner for
Services and Enforcement.
Approved: December 14, 2015.
Mark J. Mazur
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on December 21,
2015, 4:15 p.m., and published in the issue of the Federal
Register for December 23, 2015, 80 F.R. 79684)

Section 6621.—
Determination of Rate of
Interest
26 CFR 301.6621–1: Interest rate.

Rev. Rul. 2016 – 06
Rev. Rul. 2016 – 06
Section 6621 of the Internal Revenue
Code establishes the interest rates on
overpayments and underpayments of tax.
Under section 6621(a)(1), the overpayment rate is the sum of the federal shortterm rate plus 3 percentage points (2 percentage points in the case of a
corporation), except the rate for the portion of a corporate overpayment of tax
exceeding $10,000 for a taxable period is
the sum of the federal short-term rate plus
0.5 of a percentage point. Under section

Bulletin No. 2016 –14

6621(a)(2), the underpayment rate is the
sum of the federal short-term rate plus 3
percentage points.
Section 6621(c) provides that for purposes of interest payable under section
6601 on any large corporate underpayment, the underpayment rate under section
6621(a)(2) is determined by substituting
“5 percentage points” for “3 percentage
points.”
See section 6621(c) and section
301.6621–3 of the Regulations on Procedure and Administration for the definition
of a large corporate underpayment and for
the rules for determining the applicable
date. Section 6621(c) and section
301.6621–3 are generally effective for periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal shortterm rate for the first month in each calendar quarter. Section 6621(b)(2)(A) provides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calendar quarter beginning after that month.
Section 6621(b)(2)(B) provides that in determining the addition to tax under section
6654 for failure to pay estimated tax for
any taxable year, the federal short-term
rate that applies during the third month
following the taxable year also applies
during the first 15 days of the 4th month
following the taxable year. Section
6621(b)(3) provides that the federal shortterm rate for any month is the federal
short-term rate determined during that
month by the Secretary in accordance
with section 1274(d), rounded to the nearest full percent (or, if a multiple of 1/2 of
1 percent, the rate is increased to the next
highest full percent).
Notice 88 –59, 1988 –1 C.B. 546, announced that in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,

519

pursuant to section 6622, is subject to
daily compounding.
The federal short-term rate determined
in accordance with section 1274(d) during
January 2016 is the rate published in Revenue Ruling 2016 – 4, 2016 – 6 IRB 299 to
take effect beginning February 1, 2016.
The federal short-term rate, rounded to the
nearest full percent, based on daily compounding determined during the month of
April 2016 is 1 percent. Accordingly, an
overpayment rate of 4 percent (3 percent
in the case of a corporation) and an underpayment rate of 4 percent are established for the calendar quarter beginning
April 1, 2016. The overpayment rate for
the portion of a corporate overpayment
exceeding $10,000 for the calendar quarter beginning April 1, 2016 is 1.5 percent.
The underpayment rate for large corporate
underpayments for the calendar quarter
beginning April 1, 2016, is 6 percent.
These rates apply to amounts bearing interest during that calendar quarter.
Under section 6621(b)(2)(B), the 3 percent rate that applies to estimated tax underpayments for the first calendar quarter
in 2016, as provided in Rev. Rul. 2015–
23, 2015–52 I.R.B., dated Dec. 28, 2015,
also applies to such underpayments for the
first 15 days in April 2016.
Interest factors for daily compound interest for annual rates of 1.5 percent, 3
percent, 4 percent and 6 percent are published in Tables 56, 59, 61, and 65 of Rev.
Proc. 95–17, 1995–1 C.B. 610, 613, 615,
and 619.
Annual interest rates to be compounded daily pursuant to section 6622
that apply for prior periods are set forth
in the tables accompanying this revenue
ruling.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Deborah Colbert-James of the
Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this revenue ruling, contact Ms. Colbert-James at (202) 317-3400
(not a toll-free number).

April 4, 2016

TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIOD
RATE
In 1995–1 C.B.
DAILY RATE TABLE
Before Jul. 1, 1975
6%
Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 1976
9%
Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 1978
7%
Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 1980
6%
Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 1982
12%
Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 1982
20%
Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 1983
16%
Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 1983
11%
Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 1984
11%
Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 1984
11%
Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 1985
13%
Table 31, pg. 585
Jul. 1, 1985—Dec. 31, 1985
11%
Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 1986
10%
Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 1986
9%
Table 23, pg. 577

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTS

Jan. 1, 1987—Mar. 31, 1987
Apr. 1, 1987—Jun. 30, 1987
Jul. 1, 1987—Sep. 30, 1987
Oct. 1, 1987—Dec. 31, 1987
Jan. 1, 1988—Mar. 31, 1988
Apr. 1, 1988—Jun. 30, 1988
Jul. 1, 1988—Sep. 30, 1988
Oct. 1, 1988—Dec. 31, 1988
Jan. 1, 1989—Mar. 31, 1989
Apr. 1, 1989—Jun. 30, 1989
Jul. 1, 1989—Sep. 30, 1989
Oct. 1, 1989—Dec. 31, 1989
Jan. 1, 1990—Mar. 31, 1990
Apr. 1, 1990—Jun. 30, 1990
Jul. 1, 1990—Sep. 30, 1990
Oct. 1, 1990—Dec. 31, 1990
Jan. 1, 1991—Mar. 31, 1991
Apr. 1, 1991—Jun. 30, 1991
Jul. 1, 1991—Sep. 30, 1991
Oct. 1, 1991—Dec. 31, 1991
Jan. 1, 1992—Mar. 31, 1992
Apr. 1, 1992—Jun. 30, 1992

April 4, 2016

RATE
8%
8%
8%
9%
10%
9%
9%
10%
10%
11%
11%
10%
10%
10%
10%
10%
10%
9%
9%
9%
8%
7%

1995–1 C.B.
TABLE
21
21
21
23
73
71
71
73
25
27
27
25
25
25
25
25
25
23
23
23
69
67

520

UNDERPAYMENTS
PG
575
575
575
577
627
625
625
627
579
581
581
579
579
579
579
579
579
577
577
577
623
621

RATE
9%
9%
9%
10%
11%
10%
10%
11%
11%
12%
12%
11%
11%
11%
11%
11%
11%
10%
10%
10%
9%
8%

1995–1 C.B.
TABLE
23
23
23
25
75
73
73
75
27
29
29
27
27
27
27
27
27
25
25
25
71
69

PG
577
577
577
579
629
627
627
629
581
583
583
581
581
581
581
581
581
579
579
579
625
623

Bulletin No. 2016 –14

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTS

Jul. 1, 1992—Sep. 30, 1992
Oct. 1, 1992—Dec. 31, 1992
Jan. 1, 1993—Mar. 31, 1993
Apr. 1, 1993—Jun. 30, 1993
Jul. 1, 1993—Sep. 30, 1993
Oct. 1, 1993—Dec. 31, 1993
Jan. 1, 1994—Mar. 31, 1994
Apr. 1, 1994—Jun. 30, 1994
Jul. 1, 1994—Sep. 30, 1994
Oct. 1, 1994—Dec. 31, 1994
Jan. 1, 1995—Mar. 31, 1995
Apr. 1, 1995—Jun. 30, 1995
Jul. 1, 1995—Sep. 30, 1995
Oct. 1, 1995—Dec. 31, 1995
Jan. 1, 1996—Mar. 31, 1996
Apr. 1, 1996—Jun. 30, 1996
Jul. 1, 1996—Sep. 30, 1996
Oct. 1, 1996—Dec. 31, 1996
Jan. 1, 1997—Mar. 31, 1997
Apr. 1, 1997—Jun. 30, 1997
Jul. 1, 1997—Sep. 30, 1997
Oct. 1, 1997—Dec. 31, 1997
Jan. 1, 1998—Mar. 31, 1998
Apr. 1, 1998—Jun. 30, 1998
Jul. 1, 1998—Sep. 30, 1998
Oct. 1, 1998—Dec. 31, 1998

RATE
7%
6%
6%
6%
6%
6%
6%
6%
7%
8%
8%
9%
8%
8%
8%
7%
8%
8%
8%
8%
8%
8%
8%
7%
7%
7%

1995–1 C.B.
TABLE
67
65
17
17
17
17
17
17
19
21
21
23
21
21
69
67
69
69
21
21
21
21
21
19
19
19

UNDERPAYMENTS
PG
621
619
571
571
571
571
571
571
573
575
575
577
575
575
623
621
623
623
575
575
575
575
575
573
573
573

RATE
8%
7%
7%
7%
7%
7%
7%
7%
8%
9%
9%
10%
9%
9%
9%
8%
9%
9%
9%
9%
9%
9%
9%
8%
8%
8%

1995–1 C.B.
TABLE
69
67
19
19
19
19
19
19
21
23
23
25
23
23
71
69
71
71
23
23
23
23
23
21
21
21

PG
623
621
573
573
573
573
573
573
575
577
577
579
577
577
625
623
625
625
577
577
577
577
577
575
575
575

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

Jan. 1, 1999—Mar. 31, 1999
Apr. 1, 1999—Jun. 30, 1999
Jul. 1, 1999—Sep. 30, 1999
Oct. 1, 1999—Dec. 31, 1999
Jan. 1, 2000—Mar. 31, 2000
Apr. 1, 2000—Jun. 30, 2000
Jul. 1, 2000—Sep. 30, 2000
Oct. 1, 2000—Dec. 31, 2000
Jan. 1, 2001—Mar. 31, 2001

Bulletin No. 2016 –14

RATE
7%
8%
8%
8%
8%
9%
9%
9%
9%

521

1995–1 C.B.
TABLE
19
21
21
21
69
71
71
71
23

PAGE
573
575
575
575
623
625
625
625
577

April 4, 2016

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

Apr. 1, 2001—Jun. 30, 2001
Jul. 1, 2001—Sep. 30, 2001
Oct. 1, 2001—Dec. 31, 2001
Jan. 1, 2002—Mar. 31, 2002
Apr. 1, 2002—Jun. 30, 2002
Jul. 1, 2002—Sep. 30, 2002
Oct. 1, 2002—Dec. 31, 2002
Jan. 1, 2003—Mar. 31, 2003
Apr. 1, 2003—Jun. 30, 2003
Jul. 1, 2003—Sep. 30, 2003
Oct. 1, 2003—Dec. 31, 2003
Jan. 1, 2004—Mar. 31, 2004
Apr. 1, 2004—Jun. 30, 2004
Jul. 1, 2004—Sep. 30, 2004
Oct. 1, 2004—Dec. 31, 2004
Jan. 1, 2005—Mar. 31, 2005
Apr. 1, 2005—Jun. 30, 2005
Jul. 1, 2005—Sep. 30, 2005
Oct. 1, 2005—Dec. 31, 2005
Jan. 1, 2006—Mar. 31, 2006
Apr. 1, 2006—Jun. 30, 2006
Jul. 1, 2006—Sep. 30, 2006
Oct. 1, 2006—Dec. 31, 2006
Jan. 1, 2007—Mar. 31, 2007
Apr. 1, 2007—Jun. 30, 2007
Jul. 1, 2007—Sep. 30, 2007
Oct. 1, 2007—Dec. 31, 2007
Jan. 1, 2008—Mar. 31, 2008
Apr. 1, 2008—Jun. 30, 2008
Jul. 1, 2008—Sep. 30, 2008
Oct. 1, 2008—Dec. 31, 2008
Jan. 1, 2009—Mar. 31, 2009
Apr. 1, 2009—Jun. 30, 2009
Jul. 1, 2009—Sep. 30, 2009
Oct. 1, 2009—Dec. 31, 2009
Jan. 1, 2010—Mar. 31, 2010
Apr. 1, 2010—Jun. 30, 2010
Jul. 1, 2010—Sep. 30, 2010
Oct. 1, 2010—Dec. 31, 2010
Jan. 1, 2011—Mar. 31, 2011
Apr. 1, 2011—Jun. 30, 2011
Jul. 1, 2011—Sep. 30, 2011

April 4, 2016

RATE
8%
7%
7%
6%
6%
6%
6%
5%
5%
5%
4%
4%
5%
4%
5%
5%
6%
6%
7%
7%
7%
8%
8%
8%
8%
8%
8%
7%
6%
5%
6%
5%
4%
4%
4%
4%
4%
4%
4%
3%
4%
4%

522

1995–1 C.B.
TABLE
21
19
19
17
17
17
17
15
15
15
13
61
63
61
63
15
17
17
19
19
19
21
21
21
21
21
21
67
65
63
65
15
13
13
13
13
13
13
13
11
13
13

PAGE
575
573
573
571
571
571
571
569
569
569
567
615
617
615
617
569
571
571
573
573
573
575
575
575
575
575
575
621
619
617
619
569
567
567
567
567
567
567
567
565
567
567

Bulletin No. 2016 –14

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
TABLE
11
59
59
59
59
11
11
11
11
11
11
11
11
11
11
11
11
59
61

RATE
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
4%

Oct. 1, 2011—Dec. 31, 2011
Jan. 1, 2012—Mar. 31, 2012
Apr. 1, 2012—Jun. 30, 2012
Jul. 1, 2012—Sep. 30, 2012
Oct. 1, 2012—Dec. 31, 2012
Jan. 1, 2013—Mar. 31, 2013
Apr. 1, 2013—Jun. 30, 2013
Jul. 1, 2013—Sep. 30, 2013
Oct. 1, 2013—Dec. 31, 2013
Jan. 1, 2014—Mar. 31, 2014
Apr. 1, 2014—Jun. 30, 2014
Jul. 1, 2014—Sep. 30, 2014
Oct. 1, 2014—Dec. 31, 2014
Jan. 1, 2015—Mar. 31, 2015
Apr. 1, 2015—Jun. 30, 2015
Jul. 1, 2015—Sep. 30, 2015
Oct. 1, 2015—Dec. 31, 2015
Jan. 1, 2016—Mar. 31, 2016
Apr. 1, 2016—Jun. 30, 2016

PAGE
565
613
613
613
613
565
565
565
565
565
565
565
565
565
565
565
565
613
615

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTS

Jan. 1, 1999—Mar. 31, 1999
Apr. 1, 1999—Jun. 30, 1999
Jul. 1, 1999—Sep. 30, 1999
Oct. 1, 1999—Dec. 31, 1999
Jan. 1, 2000—Mar. 31, 2000
Apr. 1, 2000—Jun. 30, 2000
Jul. 1, 2000—Sep. 30, 2000
Oct. 1, 2000—Dec. 31, 2000
Jan. 1, 2001—Mar. 31, 2001
Apr. 1, 2001—Jun. 30, 2001
Jul. 1, 2001—Sep. 30, 2001
Oct. 1, 2001—Dec. 31, 2001
Jan. 1, 2002—Mar. 31, 2002
Apr. 1, 2002—Jun. 30, 2002
Jul. 1, 2002—Sep. 30, 2002

Bulletin No. 2016 –14

RATE
6%
7%
7%
7%
7%
8%
8%
8%
8%
7%
6%
6%
5%
5%
5%

1995–1 C.B.
TABLE
17
19
19
19
67
69
69
69
21
19
17
17
15
15
15

523

UNDERPAYMENTS
PG
571
573
573
573
621
623
623
623
575
573
571
571
569
569
569

RATE
7%
8%
8%
8%
8%
9%
9%
9%
9%
8%
7%
7%
6%
6%
6%

1995–1 C.B.
TABLE
19
21
21
21
69
71
71
71
23
21
19
19
17
17
17

PG
573
575
575
575
623
625
625
625
577
575
573
573
571
571
571

April 4, 2016

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTS

Oct. 1, 2002—Dec. 31, 2002
Jan. 1, 2003—Mar. 31, 2003
Apr. 1, 2003—Jun. 30, 2003
Jul. 1, 2003—Sep. 30, 2003
Oct. 1, 2003—Dec. 31, 2003
Jan. 1, 2004—Mar. 31, 2004
Apr. 1, 2004—Jun. 30, 2004
Jul. 1, 2004—Sep. 30, 2004
Oct. 1, 2004—Dec. 31, 2004
Jan. 1, 2005—Mar. 31, 2005
Apr. 1, 2005—Jun. 30, 2005
Jul. 1, 2005—Sep. 30, 2005
Oct. 1, 2005—Dec. 31, 2005
Jan. 1, 2006—Mar. 31, 2006
Apr. 1, 2006—Jun. 30, 2006
Jul. 1, 2006—Sep. 30, 2006
Oct. 1, 2006—Dec. 31, 2006
Jan. 1, 2007—Mar. 31, 2007
Apr. 1, 2007—Jun. 30, 2007
Jul. 1, 2007—Sep. 30, 2007
Oct. 1, 2007—Dec. 31, 2007
Jan. 1, 2008—Mar. 31, 2008
Apr. 1, 2008—Jun. 30, 2008
Jul. 1, 2008—Sep. 30, 2008
Oct. 1, 2008—Dec. 31, 2008
Jan. 1, 2009—Mar. 31, 2009
Apr. 1, 2009—Jun. 30, 2009
Jul. 1, 2009—Sep. 30, 2009
Oct. 1, 2009—Dec. 31, 2009
Jan. 1, 2010—Mar. 31, 2010
Apr. 1, 2010—Jun. 30, 2010
Jul. 1, 2010—Sep. 30, 2010
Oct. 1, 2010—Dec. 31, 2010
Jan. 1, 2011—Mar. 31, 2011
Apr. 1, 2011—Jun. 30, 2011
Jul. 1, 2011—Sep. 30, 2011
Oct. 1, 2011—Dec. 31, 2011
Jan. 1, 2012—Mar. 31, 2012
Apr. 1, 2012—Jun. 30, 2012
Jul. 1, 2012—Sep. 30, 2012
Oct. 1, 2012—Dec. 31, 2012

April 4, 2016

RATE
5%
4%
4%
4%
3%
3%
4%
3%
4%
4%
5%
5%
6%
6%
6%
7%
7%
7%
7%
7%
7%
6%
5%
4%
5%
4%
3%
3%
3%
3%
3%
3%
3%
2%
3%
3%
2%
2%
2%
2%
2%

1995–1 C.B.
TABLE
15
13
13
13
11
59
61
59
61
13
15
15
17
17
17
19
19
19
19
19
19
65
63
61
63
13
11
11
11
11
11
11
11
9
11
11
9
57
57
57
57

524

UNDERPAYMENTS
PG
569
567
567
567
565
613
615
613
615
567
569
569
571
571
571
573
573
573
573
573
573
619
617
615
617
567
565
565
565
565
565
565
565
563
565
565
563
611
611
611
611

RATE
6%
5%
5%
5%
4%
4%
5%
4%
5%
5%
6%
6%
7%
7%
7%
8%
8%
8%
8%
8%
8%
7%
6%
5%
6%
5%
4%
4%
4%
4%
4%
4%
4%
3%
4%
4%
3%
3%
3%
3%
3%

1995–1 C.B.
TABLE
17
15
15
15
13
61
63
61
63
15
17
17
19
19
19
21
21
21
21
21
21
67
65
63
65
15
13
13
13
13
13
13
13
11
13
13
11
59
59
59
59

PG
571
569
569
569
567
615
617
615
617
569
571
571
573
573
573
575
575
575
575
575
575
621
619
617
619
569
567
567
567
567
567
567
567
565
567
567
565
613
613
613
613

Bulletin No. 2016 –14

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTS

Jan. 1, 2013—Mar. 31, 2013
Apr. 1, 2013—Jun. 30, 2013
Jul. 1, 2013—Sep. 30, 2013
Oct. 1, 2013—Dec. 31, 2013
Jan. 1, 2014—Mar. 31, 2014
Apr. 1, 2014—Jun. 30, 2014
Jul. 1, 2014—Sep. 30, 2014
Oct. 1, 2014—Dec. 31, 2014
Jan. 1, 2015—Mar. 31, 2015
Apr. 1, 2015—Jun. 30, 2015
Jul. 1, 2015—Sep. 30, 2015
Oct. 1, 2015—Dec. 31, 2015
Jan. 1, 2016—Mar. 31, 2016
Apr. 1, 2016—Jun. 30, 2016

RATE
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
3%

1995–1 C.B.
TABLE
9
9
9
9
9
9
9
9
9
9
9
9
57
59

UNDERPAYMENTS
PG
563
563
563
563
563
563
563
563
563
563
563
563
611
613

RATE
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
3%
4%

1995–1 C.B.
TABLE
11
11
11
11
11
11
11
11
11
11
11
11
59
61

PG
565
565
565
565
565
565
565
565
565
565
565
565
613
615

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

Jan. 1, 1991—Mar. 31, 1991
Apr. 1, 1991—Jun. 30, 1991
Jul. 1, 1991—Sep. 30, 1991
Oct. 1, 1991—Dec. 31, 1991
Jan. 1, 1992—Mar. 31, 1992
Apr. 1, 1992—Jun. 30, 1992
Jul. 1, 1992—Sep. 30, 1992
Oct. 1, 1992—Dec. 31, 1992
Jan. 1, 1993—Mar. 31, 1993
Apr. 1, 1993—Jun. 30, 1993
Jul. 1, 1993—Sep. 30, 1993
Oct. 1, 1993—Dec. 31, 1993
Jan. 1, 1994—Mar. 31, 1994
Apr. 1, 1994—Jun. 30, 1994
Jul. 1, 1994—Sep. 30, 1994
Oct. 1, 1994—Dec. 31, 1994
Jan. 1, 1995—Mar. 31, 1995
Apr. 1, 1995—Jun. 30, 1995
Jul. 1, 1995—Sep. 30, 1995
Oct. 1, 1995—Dec. 31, 1995
Jan. 1, 1996—Mar. 31, 1996

Bulletin No. 2016 –14

FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATE
TABLE
13%
31
12%
29
12%
29
12%
29
11%
75
10%
73
10%
73
9%
71
9%
23
9%
23
9%
23
9%
23
9%
23
9%
23
10%
25
11%
27
11%
27
12%
29
11%
27
11%
27
11%
75

525

PG
585
583
583
583
629
627
627
625
577
577
577
577
577
577
579
581
581
583
581
581
629

April 4, 2016

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

Apr. 1, 1996—Jun. 30, 1996
Jul. 1, 1996—Sep. 30, 1996
Oct. 1, 1996—Dec. 31, 1996
Jan. 1, 1997—Mar. 31, 1997
Apr. 1, 1997—Jun. 30, 1997
Jul. 1, 1997—Sep. 30, 1997
Oct. 1, 1997—Dec. 31, 1997
Jan. 1, 1998—Mar. 31, 1998
Apr. 1, 1998—Jun. 30, 1998
Jul. 1, 1998—Sep. 30, 1998
Oct. 1, 1998—Dec. 31, 1998
Jan. 1, 1999—Mar. 31, 1999
Apr. 1, 1999—Jun. 30, 1999
Jul. 1, 1999—Sep. 30, 1999
Oct. 1, 1999—Dec. 31, 1999
Jan. 1, 2000—Mar. 31, 2000
Apr. 1, 2000—Jun. 30, 2000
Jul. 1, 2000—Sep. 30, 2000
Oct. 1, 2000—Dec. 31, 2000
Jan. 1, 2001—Mar. 31, 2001
Apr. 1, 2001—Jun. 30, 2001
Jul. 1, 2001—Sep. 30, 2001
Oct. 1, 2001—Dec. 31, 2001
Jan. 1, 2002—Mar. 31, 2002
Apr. 1, 2002—Jun. 30, 2002
Jul. 1, 2002—Sep. 30, 2002
Oct. 1, 2002—Dec. 31, 2002
Jan. 1, 2003—Mar. 31, 2003
Apr. 1, 2003—Jun. 30, 2003
Jul. 1, 2003—Sep. 30, 2003
Oct. 1, 2003—Dec. 31, 2003
Jan. 1, 2004—Mar. 31, 2004
Apr. 1, 2004—Jun. 30, 2004
Jul. 1, 2004—Sep. 30, 2004
Oct. 1, 2004—Dec. 31, 2004
Jan. 1, 2005—Mar. 31, 2005
Apr. 1, 2005—Jun. 30, 2005
Jul. 1, 2005—Sep. 30, 2005
Oct. 1, 2005—Dec. 31, 2005
Jan. 1, 2006—Mar. 31, 2006
Apr. 1, 2006—Jun. 30, 2006
Jul. 1, 2006—Sep. 30, 2006
Oct. 1, 2006—Dec. 31, 2006
Jan. 1, 2007—Mar. 31, 2007

April 4, 2016

FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATE
TABLE
10%
73
11%
75
11%
75
11%
27
11%
27
11%
27
11%
27
11%
27
10%
25
10%
25
10%
25
9%
23
10%
25
10%
25
10%
25
10%
73
11%
75
11%
75
11%
75
11%
27
10%
25
9%
23
9%
23
8%
21
8%
21
8%
21
8%
21
7%
19
7%
19
7%
19
6%
17
6%
65
7%
67
6%
65
7%
67
7%
19
8%
21
8%
21
9%
23
9%
23
9%
23
10%
25
10%
25
10%
25

526

PG
627
629
629
581
581
581
581
581
579
579
579
577
579
579
579
627
629
629
629
581
579
577
577
575
575
575
575
573
573
573
571
619
621
619
621
573
575
575
577
577
577
579
579
579

Bulletin No. 2016 –14

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

Apr. 1, 2007—Jun. 30, 2007
Jul. 1, 2007—Sep. 30, 2007
Oct. 1, 2007—Dec. 31, 2007
Jan. 1, 2008—Mar. 31, 2008
Apr. 1, 2008—Jun. 30, 2008
Jul. 1, 2008—Sep. 30, 2008
Oct. 1, 2008—Dec. 31, 2008
Jan. 1, 2009—Mar. 31, 2009
Apr. 1, 2009—Jun. 30, 2009
Jul. 1, 2009—Sep. 30, 2009
Oct. 1, 2009—Dec. 31, 2009
Jan. 1, 2010—Mar. 31, 2010
Apr. 1, 2010—Jun. 30, 2010
Jul. 1, 2010—Sep. 30, 2010
Oct. 1, 2010—Dec. 31, 2010
Jan. 1, 2011—Mar. 31, 2011
Apr. 1, 2011—Jun. 30, 2011
Jul. 1, 2011—Sep. 30, 2011
Oct. 1, 2011—Dec. 31, 2011
Jan. 1, 2012—Mar. 31, 2012
Apr. 1, 2012—Jun. 30, 2012
Jul. 1, 2012—Sep. 30, 2012
Oct. 1, 2012—Dec. 31, 2012
Jan. 1, 2013—Mar. 31, 2013
Apr. 1, 2013—Jun. 30, 2013
Jul. 1, 2013—Sep. 30, 2013
Oct. 1, 2013—Dec. 31, 2013
Jan. 1, 2014—Mar. 31, 2014
Apr. 1, 2014—Jun. 30, 2014
Jul. 1, 2014—Sep. 30, 2014
Oct. 1, 2014—Dec. 31, 2014
Jan. 1, 2015—Mar. 31, 2015
Apr. 1, 2015—Jun. 30, 2015
Jul. 1, 2015—Sep. 30, 2015
Oct. 1, 2015—Dec. 31, 2015
Jan. 1, 2016—Mar. 31, 2016
Apr. 1, 2016—Jun. 30, 2016

Bulletin No. 2016 –14

FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATE
TABLE
10%
25
10%
25
10%
25
9%
71
8%
69
7%
67
8%
69
7%
19
6%
17
6%
17
6%
17
6%
17
6%
17
6%
17
6%
17
5%
15
6%
17
6%
17
5%
15
5%
63
5%
63
5%
63
5%
63
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
15
5%
63
6%
65

527

PG
579
579
579
625
623
621
623
573
571
571
571
571
571
571
571
569
571
571
569
617
617
617
617
569
569
569
569
569
569
569
569
569
569
569
569
617
619

April 4, 2016

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000

Jan. 1, 1995—Mar. 31, 1995
Apr. 1, 1995—Jun. 30, 1995
Jul. 1, 1995—Sep. 30, 1995
Oct. 1, 1995—Dec. 31, 1995
Jan. 1, 1996—Mar. 31, 1996
Apr. 1, 1996—Jun. 30, 1996
Jul. 1, 1996—Sep. 30, 1996
Oct. 1, 1996—Dec. 31, 1996
Jan. 1, 1997—Mar. 31, 1997
Apr. 1, 1997—Jun. 30, 1997
Jul. 1, 1997—Sep. 30, 1997
Oct. 1, 1997—Dec. 31, 1997
Jan. 1, 1998—Mar. 31, 1998
Apr. 1, 1998—Jun. 30, 1998
Jul. 1. 1998—Sep. 30, 1998
Oct. 1, 1998—Dec. 31, 1998
Jan. 1, 1999—Mar. 31, 1999
Apr. 1, 1999—Jun. 30, 1999
Jul. 1, 1999—Sep. 30, 1999
Oct. 1, 1999—Dec. 31, 1999
Jan. 1, 2000—Mar. 31, 2000
Apr. 1, 2000—Jun. 30, 2000
Jul. 1, 2000—Sep. 30, 2000
Oct. 1, 2000—Dec. 31, 2000
Jan. 1, 2001—Mar. 31, 2001
Apr. 1, 2001—Jun. 30, 2001
Jul. 1, 2001—Sep. 30, 2001
Oct. 1, 2001—Dec. 31, 2001
Jan. 1, 2002—Mar. 31, 2002
Apr. 1, 2002—Jun. 30, 2002
Jul. 1, 2002—Sep. 30, 2002
Oct. 1, 2002—Dec. 31, 2002
Jan. 1, 2003—Mar. 31, 2003
Apr. 1, 2003—Jun. 30, 2003
Jul. 1, 2003—Sep. 30, 2003
Oct. 1, 2003—Dec. 31, 2003
Jan. 1, 2004—Mar. 31, 2004
Apr. 1, 2004—Jun. 30, 2004
Jul. 1, 2004—Sep. 30, 2004
Oct. 1, 2004—Dec. 31, 2004
Jan. 1, 2005—Mar. 31, 2005
Apr. 1, 2005—Jun. 30, 2005
Jul. 1, 2005—Sep. 30, 2005

April 4, 2016

FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATE
TABLE
6.5%
18
7.5%
20
6.5%
18
6.5%
18
6.5%
66
5.5%
64
6.5%
66
6.5%
66
6.5%
18
6.5%
18
6.5%
18
6.5%
18
6.5%
18
5.5%
16
5.5%
16
5.5%
16
4.5%
14
5.5%
16
5.5%
16
5.5%
16
5.5%
64
6.5%
66
6.5%
66
6.5%
66
6.5%
18
5.5%
16
4.5%
14
4.5%
14
3.5%
12
3.5%
12
3.5%
12
3.5%
12
2.5%
10
2.5%
10
2.5%
10
1.5%
8
1.5%
56
2.5%
58
1.5%
56
2.5%
58
2.5%
10
3.5%
12
3.5%
12

528

PG
572
574
572
572
620
618
620
620
572
572
572
572
572
570
570
570
568
570
570
570
618
620
620
620
572
570
568
568
566
566
566
566
564
564
564
562
610
612
610
612
564
566
566

Bulletin No. 2016 –14

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000

Oct. 1, 2005—Dec. 31, 2005
Jan. 1, 2006—Mar. 31, 2006
Apr. 1, 2006—Jun. 30, 2006
Jul. 1, 2006—Sep. 30, 2006
Oct. 1, 2006—Dec. 31, 2006
Jan. 1, 2007—Mar. 31, 2007
Apr. 1, 2007—Jun. 30, 2007
Jul. 1, 2007—Sep. 30, 2007
Oct. 1, 2007—Dec. 31, 2007
Jan. 1, 2008—Mar. 31, 2008
Apr. 1, 2008—Jun. 30, 2008
Jul. 1, 2008—Sep. 30, 2008
Oct. 1, 2008—Dec. 31, 2008
Jan. 1, 2009—Mar. 31, 2009
Apr. 1, 2009—Jun. 30, 2009
Jul. 1, 2009—Sep. 30, 2009
Oct. 1, 2009—Dec. 31, 2009
Jan. 1, 2010—Mar. 31, 2010
Apr. 1, 2010—Jun. 30, 2010
Jul. 1, 2010—Sep. 30, 2010
Oct. 1, 2010—Dec. 31, 2010
Jan. 1, 2011—Mar. 31, 2011
Apr. 1, 2011—Jun. 30, 2011
Jul. 1, 2011—Sep. 30, 2011
Oct. 1, 2011—Dec. 31, 2011
Jan. 1, 2012—Mar. 31, 2012
Apr. 1, 2012—Jun. 30, 2012
Jul. 1, 2012—Sep. 30, 2012
Oct. 1, 2012—Dec. 31, 2012
Jan. 1, 2013—Mar. 31, 2013
Apr. 1, 2013—Jun. 30, 2013
Jul. 1, 2013—Sep. 30, 2013
Oct. 1, 2013—Dec. 31, 2013
Jan. 1, 2014—Mar. 31, 2014
Apr. 1, 2014—Jun. 30, 2014
Jul. 1, 2014—Sep. 30, 2014
Oct. 1, 2014—Dec. 31, 2014
Jan. 1, 2015—Mar. 31, 2015
Apr. 1, 2015—Jun. 30, 2015
Jul. 1, 2015—Sep. 30, 2015
Oct. 1, 2015—Dec. 31, 2015

Bulletin No. 2016 –14

FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATE
TABLE
4.5%
14
4.5%
14
4.5%
14
5.5%
16
5.5%
16
5.5%
16
5.5%
16
5.5%
16
5.5%
16
4.5%
62
3.5%
60
2.5%
58
3.5%
60
2.5%
10
1.5%
8
1.5%
8
1.5%
8
1.5%
8
1.5%
8
1.5%
8
1.5%
8
0.5%*
1.5%
8
1.5%
8
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*
0.5%*

529

PG
568
568
568
570
570
570
570
570
570
616
614
612
614
564
562
562
562
562
562
562
562
562
562

April 4, 2016

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATE
TABLE
0.5%*
1.5%

Jan. 1, 2016—Mar. 31, 2016
Apr. 1, 2016—Jun. 30, 2016

PG

* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent, which are published
in Appendix A of Rev. Rul. 2015–23, 2015–52 I.R.B., dated Dec. 28, 2015.

Section 1274.—
Determination of Issue
Price in the Case of
Certain Debt Instruments
Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)

Rev. Rul. 2016 – 09
This revenue ruling provides various
prescribed rates for federal income tax

purposes for April 2016 (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 longterm tax-exempt rate described in section
382(f). Table 4 contains the appropriate

percentages for determining the lowincome 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. 2016–09 TABLE 1
Applicable Federal Rates (AFR) for April 2016
Annual
AFR
110% AFR
120% AFR
130% AFR

.70%
.77%
.84%
.91%

AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR

1.45%
1.59%
1.74%
1.88%
2.17%
2.54%

AFR
110% AFR
120% AFR
130% AFR

2.25%
2.48%
2.71%
2.93%

April 4, 2016

Period for Compounding
Semiannual
Short-term
.70%
.77%
.84%
.91%
Mid-term
1.44%
1.58%
1.73%
1.87%
2.16%
2.52%
Long-term
2.24%
2.46%
2.69%
2.91%

530

Quarterly

Monthly

.70%
.77%
.84%
.91%

.70%
.77%
.84%
.91%

1.44%
1.58%
1.73%
1.87%
2.15%
2.51%

1.44%
1.57%
1.72%
1.86%
2.15%
2.51%

2.23%
2.45%
2.68%
2.90%

2.23%
2.45%
2.68%
2.89%

Bulletin No. 2016 –14

Short-term adjusted AFR
Mid-term adjusted AFR
Long-term adjusted AFR

REV. RUL. 2016–09 TABLE 2
Adjusted AFR for April 2016
Period for Compounding
Annual
Semiannual
.46%
.46%
1.12%
1.12%
2.25%
2.24%

Quarterly
.46%
1.12%
2.23%

REV. RUL. 2016–09 TABLE 3
Rates Under Section 382 for April 2016
Adjusted federal long-term rate for the current month
Long-term tax-exempt rate for ownership changes during the current month
(the highest of the adjusted federal long-term rates for the current month and the prior two months.)

REV. RUL. 2016–09 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2016
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
Appropriate percentage for the 30% present value low-income housing credit

Monthly
.46%
1.12%
2.23%

2.25%
2.53%

7.42%
3.18%

REV. RUL. 2016–09 TABLE 5
Rate Under Section 7520 for April 2016
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

Section 42.—Low-Income
Housing Credit

Section 412.—Minimum
Funding Standards

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016 – 09, page 530.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016 – 09, page 530.

Section 280G.—Golden
Parachute Payments

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

Federal short-term, mid-term, and long-term
rates are set forth for the month of April 2016. See
Rev. Rul. 2016 – 09, page 530.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016 – 09, page 530.

1.8%

Section 482.—Allocation of
Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term
rates are set forth for the month of April 2016. See
Rev. Rul. 2016 – 09, page 530.

Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016 – 09, page 530.

Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change

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

Section 642.—Special
Rules for Credits and
Deductions

The adjusted applicable federal long-term rate is
set forth for the month of April 2016. See Rev. Rul.
2016 – 09, page 530.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016 – 09, page 530.

Federal short-term, mid-term, and long-term
rates are set forth for the month of April 2016. See
Rev. Rul. 2016 – 09, page 530.

Bulletin No. 2016 –14

531

April 4, 2016