Today the IRS released Revenue Ruling 2016-02, which sets forth the prevailing state assumed interest rates used by insurance companies to determine their reserves under section 807 for contracts that are issued in 2015 and 2016.  The ruling supplements, in part, Revenue Ruling 92-19.

The IRS also released Notice 2016-06, which provides correction procedures for employers who paid transit benefits in excess of $130 per month in 2015 and wish to make corrections on their fourth quarter Form 941, as the Consolidated Appropriations Act, 2016 retroactively increased the monthly transit benefit limit for 2015 from $130 to $250 per month.  The notice provides a special correction procedure.