January 3, 2023
IRS Corrects Previously Released 2022 Loss Reserve Discount Factors
The Internal Revenue Service (IRS) issued Rev. Proc. 2023-10 on December 23, 2022, which contains the new property and casualty discount factors for the 2022 tax year. These factors were determined using the applicable interest rate of 2.67% for 2022 based on the composite method of Notice 88-100.
Linked below is a table that summarizes the new factors to use for computing discounted unpaid losses and estimated salvage and subrogation as prescribed for the 2022 tax year.
The IRS recently revised the 2022 discount factors after discovering an error in the originally released factors. Rev. Proc. 2023-10 has been updated and the corrected table is included below.
If you have any questions please contact Allan Autry or Brandy Vannoy.
This insight has been updated as of January 11, 2023 to reflect new information.