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Title 26 — Internal Revenue CodeRelease 119-73

§7520 Valuation Tables

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 77— MISCELLANEOUS PROVISIONS › § 7520

Last updated Apr 6, 2026|Official source

Summary

For tax purposes, the value of any annuity, life interest, term-of-years interest, remainder, or reversion is figured using tables issued by the IRS, together with an interest rate equal to 120 percent of the federal midterm rate for the month of valuation, rounded to the nearest 2/10ths of 1 percent. The tables must include factors for a range of interest rates and must be updated at least once every 10 years to reflect the latest mortality data. The valuation date is the date the valuation is made, and the tables can take the form of formulas. These rules do not apply to certain pension provisions or others specified in regulations.

Full Legal Text

Title 26, §7520

Internal Revenue Code — Source: USLM XML via OLRC

(a)For purposes of this title, the value of any annuity, any interest for life or a term of years, or any remainder or reversionary interest shall be determined—
(1)under tables prescribed by the Secretary, and
(2)by using an interest rate (rounded to the nearest 2/10ths of 1 percent) equal to 120 percent of the Federal midterm rate in effect under section 1274(d)(1) for the month in which the valuation date falls.
(b)This section shall not apply for purposes of part I of subchapter D of chapter 1 or any other provision specified in regulations.
(c)(1)The tables prescribed by the Secretary for purposes of subsection (a) shall contain valuation factors for a series of interest rate categories.
(2)The Secretary shall revise the initial tables prescribed for purposes of subsection (a) to take into account the most recent mortality experience available as of the time of such revision. Such tables shall be revised not less frequently than once each 10 years to take into account the most recent mortality experience available as of the time of the revision.
(d)For purposes of this section, the term “valuation date” means the date as of which the valuation is made.
(e)For purposes of this section, the term “tables” includes formulas.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Another section 7520 was renumbered section 7521 of this title.

Amendments

2014—Subsec. (c)(2), (3). Pub. L. 113–295 redesignated par. (3) as (2), substituted “The Secretary” for “Not later than December 31, 1989, the Secretary” and struck out “thereafter” after “once each 10 years”, and struck out former par. (2). Prior to amendment, text of par. (2) read as follows: “Not later than the day 3 months after the date of the enactment of this section, the Secretary shall prescribe initial tables for purposes of subsection (a). Such tables may be based on the same mortality experience as used for purposes of section 2031 on the date of the enactment of this section.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a

Savings Provision

, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

Effective Date

Pub. L. 100–647, title V, § 5031(c), Nov. 10, 1988, 102 Stat. 3669, provided that: “The

Amendments

made by this section [enacting this section] shall apply in cases where the date as of which the valuation is to be made occurs on or after the 1st day of the 6th calendar month beginning after the date of the enactment of this Act [Nov. 10, 1988].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 7520

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73