Finance & markets · 26/04/2016

Determination of Adjusted Applicable Federal Rates Under Section 1288 and the Adjusted Federal Long-Term Rate Under Section 382

The IRS has released final regulations to adjust applicable Federal rates (AFRs) for tax-exempt obligations and determine the long-term tax-exempt rate and adjusted Federal long-term rate under Section 382 of the Internal Revenue Code. The changes affect the calculation of original issue discount and total unstated interest, as well as the use of certain operating loss carryforwards and tax credits.