These are some of the rates published each month by the Internal Revenue Service in accordance with section 1274(d) of the Internal Revenue Code.
The federal "short-term rate" is determined from a one-month average of the market yields from marketable obligations of the United States with maturities of 3 years or less. The "mid-term rate" is determined from obligations with maturities of more than 3 years but not more than 9 years, and the "long-term rate" is determined from obligations with maturities of more than 9 years.
These rates are used for a number of different purposes under the Internal Revenue Code, including the determinations of original issue discount and unstated interest and the gift tax and income tax consequences of below-market loans under section 7872. (However, interest on demand loans with a fixed principal amount outstanding for an entire year can be determined using the "blended annual rate" described in section 7872(e)(2)(A) of the Internal Revenue Code.)
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan-2012 | 0.19% | 0.19% | 0.19% | 0.19% |
| Feb-2012 | 0.19% | 0.19% | 0.19% | 0.19% |
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan-2012 | 1.17% | 1.17% | 1.17% | 1.17% |
| Feb-2012 | 1.12% | 1.12% | 1.12% | 1.12% |
| Month | Annual | Semiann. | Quarterly | Monthly |
|---|---|---|---|---|
| Jan-2012 | 2.63% | 2.61% | 2.60% | 2.60% |
| Feb-2012 | 2.58% | 2.56% | 2.55% | 2.55% |