Applicable Federal Rates · April 2004
Applicable Federal Rates for April 2004
Every rate the IRS published for April 2004 in Rev. Rul. 2004-39: the short-, mid- and long-term AFR at four compounding periods, the multiples, the adjusted AFR, and the § 7520 rate. The 120% mid-term row is worked below the table.
In April 2004 the mid-term AFR was 3.15% and 120% of it was 3.80% (annual compounding), so a 72(t)/SEPP payment beginning in either of the two following months could use up to the greater of 5% and 3.80%. The § 7520 rate for the month was 3.8%.
| Rate | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term (3 years or less) | ||||
| AFR | 1.47% | 1.46% | 1.46% | 1.46% |
| 110% AFR | 1.62% | 1.61% | 1.61% | 1.60% |
| 120% AFR | 1.76% | 1.75% | 1.75% | 1.74% |
| 130% AFR | 1.91% | 1.90% | 1.90% | 1.89% |
| Mid-term (over 3, up to 9 years) | ||||
| AFR | 3.15% | 3.13% | 3.12% | 3.11% |
| 110% AFR | 3.47% | 3.44% | 3.43% | 3.42% |
| 120% AFR | 3.80% | 3.76% | 3.74% | 3.73% |
| 130% AFR | 4.11% | 4.07% | 4.05% | 4.04% |
| 150% AFR | 4.76% | 4.70% | 4.67% | 4.65% |
| 175% AFR | 5.56% | 5.48% | 5.44% | 5.42% |
| Long-term (over 9 years) | ||||
| AFR | 4.66% | 4.61% | 4.58% | 4.57% |
| 110% AFR | 5.13% | 5.07% | 5.04% | 5.02% |
| 120% AFR | 5.61% | 5.53% | 5.49% | 5.47% |
| 130% AFR | 6.08% | 5.99% | 5.95% | 5.92% |
| Term | Annual | Semiannual | Quarterly | Monthly |
|---|---|---|---|---|
| Short-term adjusted AFR | 1.17% | 1.17% | 1.17% | 1.17% |
| Mid-term adjusted AFR | 2.34% | 2.33% | 2.32% | 2.32% |
| Long-term adjusted AFR | 4.05% | 4.01% | 3.99% | 3.98% |
| Adjusted federal long-term rate (§ 382) | 4.05% |
| Long-term tax-exempt rate (§ 382; highest of this and the prior two months) | 4.31% |
| § 7520 rate (annuities, life estates, remainders) | 3.8% |
Source: IRS Rev. Rul. 2004-39, Tables 1, 2, 3 and 5 (PDF on irs.gov). Percentages are shown as the ruling prints them; nothing here is rounded or derived except the worked lines below, which are labelled as such. Rates apply to the calendar month named, under IRC § 1274(d); which month governs a given instrument depends on the Code section that uses it.
How the 120% mid-term rate is derived
The IRS applies each multiple to the semiannual mid-term AFR, then converts that semiannual rate to the other compounding periods. Multiplying the annual figure by 1.2 does not reproduce the published table; this does, within 0.01 percentage points, in every ruling since January 2000.
The § 7520 rate is the annual 120% mid-term figure rounded to the nearest 0.2%, with a tie rounding up: 3.80% → 3.8%, which is what the ruling publishes.
What these rates are for
IRC § 1274(d) requires the IRS to publish the applicable federal rates every month: the short-term rate for instruments of three years or less, the mid-term rate for over three and up to nine years, and the long-term rate beyond that, each set from the average market yield on outstanding U.S. Treasury obligations of comparable maturity. The multiples serve other Code sections: 120% of the mid-term rate caps a 72(t)/SEPP fixed-amortization or annuitization payment (Notice 2022-6) and, rounded to 0.2%, is the § 7520 rate used to value annuities, life estates and remainders; the 110%, 130%, 150% and 175% rows feed § 42, § 382, § 467 and § 468 computations. The adjusted AFR in Table 2 is the § 1288 rate for tax-exempt obligations.
Informational only, not tax, legal or financial advice. Confirm the figure against the linked ruling before relying on it.
Last reviewed: November 2026 · snapshot built 2026-10-26 from irs.gov.
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