Finance & markets · 02/03/2015

Treasury Proposes Rules for Adjusting Federal Interest Rates for Tax-Exempt Obligations

The Treasury Department has released proposed regulations that outline a method for adjusting applicable federal rates (AFRs) for tax-exempt obligations, as well as a method for determining the long-term tax-exempt rate and adjusted federal long-term rate. The proposed rules also affect the determination of certain tax attributes, such as original issue discount and total unstated interest, and are open to public comment with a scheduled public hearing.