IRS Revenue Ruling
2000-23

 Code Secs. 1274, 42, 280G, 382, 412, 467 ....

<<FULL TEXT>>

(Also sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846,
1288, 7520, 7872.)

Federal rates; adjusted federal rates; adjusted federal long-term rate,
and the long-term exempt rate. For purposes of sections 1274, 1288, 382,
and other sections of the Code, tables set forth the rates for May 2000.


REV. RUL. 2000-23

This revenue ruling provides various prescribed rates for federal
income tax purposes for May 2000 (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 short-term, 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 long-term tax-exempt rate described in section 382(f). Table 4
contains the appropriate percentages for determining the low-income
housing credit described in section 42(b)(2) for buildings placed in
service during the current month. 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. 2000-23 TABLE 1

Applicable Federal Rates (AFR) for May 2000

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-Term
AFR 6.42% 6.32% 6.27% 6.24%
110% AFR 7.07% 6.95% 6.89% 6.85%
120% AFR 7.72% 7.58% 7.51% 7.46%
130% AFR 8.39% 8.22% 8.14% 8.08%

Mid-Term
AFR 6.40% 6.30% 6.25% 6.22%
110% AFR 7.05% 6.93% 6.87% 6.83%
120% AFR 7.70% 7.56% 7.49% 7.44%
130% AFR 8.36% 8.19% 8.11% 8.05%
150% AFR 9.67% 9.45% 9.34% 9.27%
175% AFR 11.33% 11.03% 10.88% 10.78%

Long-Term
AFR 6.20% 6.11% 6.06% 6.03%
110% AFR 6.83% 6.72% 6.66% 6.63%
120% AFR 7.46% 7.33% 7.26% 7.22%
130% AFR 8.10% 7.94% 7.86% 7.81%


REV. RUL. 2000-23 TABLE 2

Period for Compounding
-------------------------------------------
Annual Semiannual Quarterly Monthly
------ ---------- --------- -------
Short-term
adjusted AFR 4.34% 4.29% 4.27% 4.25%
Mid-term
adjusted AFR 4.91% 4.85% 4.82% 4.80%
Long-term
adjusted AFR 5.57% 5.49% 5.45% 5.43%


REV. RUL. 2000-23 TABLE 3

Rates Under Section 382 for May 2000

Adjusted federal long-term rate for the current month 5.57%

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.) 5.84%


REV. RUL. 2000-23 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for May 2000

Appropriate percentage for the 70% present value
low-income housing credit 8.48%
Appropriate percentage for the 30% present value
low-income housing credit 3.63%


REV. RUL. 2000-23 TABLE 5

Rate Under Section 7520 for May 2000

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 7.8%

<<END RULING>>

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