The Internal Revenue Service (IRS) published today in the Federal Register final regulations that provide the method to be used to adjust the applicable Federal rates (AFRs) to determine the corresponding rates under section 1288 of the Internal Revenue Code (Code) for tax-exempt obligations (adjusted AFRs) and the method to be used to determine the long-term tax-exempt rate and the adjusted Federal long-term rate under section 382. For tax-exempt obligations, the regulations affect the determination of original issue discount under section 1273 and of total unstated interest under section 483. The IRS final regs, which are effective today, April 26, 2016, adopt proposed regs (REG-136018-13) issued in March 2015 without substantive change.
The final regulations are available here.