IRS Releases 2023 Loss Reserve Discount Factors

The Internal Revenue Service (IRS) issued Rev. Proc. 2023-41 on December 7, 2023, which contains the new property and casualty discount factors for the 2023 tax year. These factors were determined using the applicable interest rate of 2.9% for 2023 based on the composite method of Notice 88-100.

Linked in this article is a table that summarizes the new factors to use for computing discounted unpaid losses and estimated salvage and subrogation as prescribed for the 2023 tax year.

If you have any questions please contact Allan Autry or Brandy Vannoy.