IRS Sets Applicable, Adjusted Federal Interest Rates for June

The Internal Revenue Service released the applicable and adjusted federal interest rates for June.

The rates in Revenue Ruling 2017-12, released May 17, are used in determining the present value of annuities, loans with below-market interest rates, the present value of golden parachute payments and unrelated business income of tax-exempt organizations.

According to Rev. Rul. 2017-12, the annual applicable short-term rate for June is 1.18 percent, the mid-term rate is 1.96 percent and the long-term rate is 2.68 percent. The adjusted AFRs for June are 0.88 percent (short-term), 1.46 percent (mid-term) and 1.99 percent (long-term).

A 2.4 percent AFR ...