rp-26-13.pdf

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Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.601: Rules and regulations.
(Also: Part I, §§ 832, 846; 1.846-1.)

Rev. Proc. 2026-13

SECTION 1. PURPOSE

This revenue procedure provides discount factors for the 2025 accident year for use
by insurance companies in computing discounted unpaid losses under § 846 of the
Internal Revenue Code
1
and discounted estimated salvage recoverable under § 832.
This revenue procedure also provides, for convenience, discount factors for losses
incurred in the 2024 accident year and earlier accident years for use in taxable years
beginning in 2025. The discount factors for accident years before 2025 were provided in
earlier revenue procedures. See, e.g., Rev. Proc. 2025-15, 2025-11 I.R.B. 1090. See
Rev. Proc. 2023-10, 2023-3 I.R.B. 411, for background concerning the loss payment

1
Unless otherwise specified, all “section” or “§” references are to sections of the Internal Revenue Code or
the Income Tax Regulations (26 CFR part 1).

2

patterns and application of the discount factors. This revenue procedure also requests
comments relating to the composite method described in this revenue procedure and a
2024 change by the National Association of Insurance Commissioners (NAIC) to
Schedule P (Analysis of Losses and Loss Expenses) of the annual statement.
SECTION 2. SCOPE

This revenue procedure applies to any insurance company that is required to discount
unpaid losses under § 846 for a line of business using the discount factors published by
the Secretary of the Treasury or the Secretary’s delegate (Secretary) and also applies to
any insurance company that is required to discount estimated salvage recoverable under
§ 832.

SECTION 3. DISCOUNT FACTORS FOR THE 2025 ACCIDENT YEAR

.01 The tables in this section 3 present separately for each line of business the
discount factors for losses incurred in the 2025 accident year for use by insurance
companies in computing discounted unpaid losses under § 846 and estimated salvage
recoverable under § 832. The discount factors presented in this section are generally
determined by using the applicable interest rate for 2025 under § 846(c), which is 3.57
percent, compounded semiannually. The exceptions are the discount factors for long-tail
lines of business determined using the composite method described in section V of Notice
88-100, 1988-2 C.B. 439. See section 3.02 of this revenue procedure. All discount factors
are determined by assuming all loss payments occur in the middle of the calendar year.
.02 Section V of Notice 88-100 sets forth a composite method for computing
discounted unpaid losses for accident years that are not separately reported on the
annual statement. Tables 1 and 2 separately provide discount factors for insurance
companies that have elected to use the composite method of Notice 88-100. See Rev.

3

Proc. 2002-74, 2002-2 C.B. 980. The discount factors computed using the composite
method are unrelated to the composite discount factors referred to in § 1.846-1(b)(1)(ii)
and (4), which apply to lines of business for which the Secretary has not published
discount factors. The composite discount factors for use with respect to such lines of
business are labelled “Short-Tail Composite” (in Table 1, part B) and “Long-Tail
Composite” (in Table 2, part B). The “Miscellaneous Casualty” discount factors
referenced in § 1.846-1(b)(2) are not set forth in tables but are equivalent to the “Short-
Tail Composite” discount factors.

4

Discount Factors for 2025
2025 Interest Rate (using semi-annual compounding): 3.57%

Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business

Taxable Year
Beginning in
Auto Physical
Damage Fidelity/Surety

Financial
Guaranty/
Mortgage
Guaranty International Other*

2025
98.0171 94.8069 94.2020 94.9732 96.3288
2026
96.5385 96.5385 96.5385 96.5385 96.5385

Taxpayer Not Using Composite Method

Years after 2026
98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method

2027 98.2463 98.2463 98.2463 98.2463 98.2463

Years after 2027
Use composite method discount factors published for the accident year that is two years
prior to the specified taxable year.

* For the Accident and Health line of business (other than disability income or credit disability insurance), the
discount factor for taxable year 2025 is 98.2463 percent. This is also the discount factor used in later taxable
years for taxpayers not using the composite method. For taxpayers using the composite method, the discount
factor for losses incurred in 2025 is the discount factor published for the Accident and Health line of business
for losses incurred in the accident year coinciding with the taxable year.

5

Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business

Taxable Year
Beginning in
Reinsurance
-
Non-
proportional
Assumed
Financial
Lines
Reinsurance
-
Non-
proportional
Assumed
Liability
Reinsurance
-
Non-
proportional
Assumed
Property
Special
Property
(Fire,
Allied Lines,
Inland
Marine,
Earthquake,
Burglary,
Theft, Pet)
Warranty
Short-Ta i l
Composite

2025

94.9406

93.8058

95.3714

97.0553

98.0069

96.6054

2026
96.5385 96.5385 96.5385 96.5385 96.5385 96.5385

Taxpayer Not Using Composite Method

Years after
2026
98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method
2027 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Years after 2027 Use composite method discount factors published for the accident year that is two years
prior to the specified taxable year.

6

Table 2 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Long-Tail Lines of Business

Taxable Year
Beginning in
Commercial
Auto/Truck
Liability/Medical
Medical
Professional
Liability -
Claims-Made
Medical
Professional
Liability -
Occurrence
Multiple Peril
Lines
Other
Liability -
Claims-
Made
Other
Liability -
Occurrence

2025 92.7912 89.9549 84.2073 94.4611 89.6344 87.9606
2026 93.5133 91.2521 86.4746 92.5690 90.7627 88.9863
2027 94.1823 91.6347 88.1348 92.6080 90.8107 89.8289
2028 94.5524 92.6662 89.7767 92.5264 91.0559 90.2447
2029 94.4332 92.4552 90.7378 92.2615 90.9686 90.6061
2030 93.8646 93.2174 91.1974 92.5637 91.0111 89.3763
2031 93.8845 92.6918 91.6531 92.6495 90.5663 89.3393
2032 94.4510 93.7328 91.4746 94.7671 92.5852 90.2206
2033 95.6118 95.3263 93.6570 95.7661 95.6185 91.4060
2034 97.8620 97.0999 95.6841 97.5155 96.3278 93.6044

Taxpayer Not Using Composite Method

2035 98.2463 98.2463 97.2501 98.2463 97.9703 95.2097
2036 98.2463 98.2463 98.2463 98.2463 98.2463 96.8131
Years after 2036 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method

2035 98.2463 98.2463 97.5177 98.2463 98.0050 96.3273

Years after 2035 Use composite method discount factors published for the accident year that is ten years prior to the
specified taxable year.

7

Table 2 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Long-Tail Lines of Business

Taxable
Year
Beginning in
Private
Passenger
Auto
Liability/
Medical
Products
Liability -
Claims-Made
Products
Liability -
Occurrence
Workers'
Compensation
Long-Tail
Composite

2025 94.9556 86.9550 86.1793 86.7823 92.0262
2026 94.5489 88.5282 87.8134 85.0171 91.1814
2027 94.6490 88.8084 89.1375 84.3111 90.8933
2028 94.5543 87.6563 89.8227 83.7305 90.1230
2029 93.4742 89.4311 90.2047 84.0629 89.7600
2030 92.7233 91.3355 90.7591 83.3153 89.1923
2031 93.4032 93.4192 91.8587 83.9937 89.4663
2032 93.5712 93.9397 92.1985 85.7493 91.0189
2033 94.4679 95.4488 93.4239 87.4231 92.6313
2034 97.0779 97.4692 95.8540 88.5091 94.1737

Taxpayer Not Using Composite Method

2035 98.2463 98.2463 97.4244 90.0263 95.7770
2036 98.2463 98.2463 98.2463 91.5785 97.3442
2037 98.2463 98.2463 98.2463 93.1661 98.2463
2038 98.2463 98.2463 98.2463 94.7893 98.2463
2039 98.2463 98.2463 98.2463 96.4458 98.2463
2040 98.2463 98.2463 98.2463 98.1221 98.2463
Years after 2040 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method

2035 98.2463 98.3230 97.6204 93.4950 96.8705

Years after
2035
Use composite method discount factors published for the accident year that is ten years
prior to the specified taxable year.

8

SECTION 4. DISCOUNT FACTORS FOR TAXABLE YEARS BEGINNING IN 2025
.01 The tables in this section 4 present separately for each line of business discount
factors for losses incurred in the 2025 accident year and earlier accident years for use by
insurance companies in computing discounted unpaid losses under § 846 and estimated
salvage recoverable under § 832 in taxable years beginning in 2025.
.02 Tables 3 and 4 separately provide discount factors for insurance companies that
have elected to use the composite method of Notice 88-100. See Rev. Proc. 2002-74.
The discount factors computed using the composite method are unrelated to the
composite discount factors referred to in § 1.846-1(b)(1)(ii) and (4), which apply to lines of
business for which the Secretary has not published discount factors. The composite
discount factors for use with respect to such lines of business are labelled “Short-Tail
Composite” (in Table 3, part B) and “Long-Tail Composite” (in Table 4, part B). The
“Miscellaneous Casualty” discount factors referenced in § 1.846-1(b)(2) are not set forth
in tables but are equivalent to the “Short-Tail Composite” discount factors.

9

Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business

Accident Year
Auto Physical
Damage Fidelity/Surety
Financial
Guaranty/
Mortgage
Guaranty International Other*

2025 98.0171 94.8069 94.2020 94.9732 96.3288
2024 96.9063 96.9063 96.9063 96.9063 96.9063

Taxpayer Not Using Composite Method

2023 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785
Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2024 98.5707 98.5707 98.5707 98.5707 98.5707

* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount factor
for taxable year 2024 is 98.4349 percent.

10

Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business

Accident Year
Reinsurance -
Non-
proportional
Assumed
Financial Lines
Reinsurance -
Non-
proportional
Assumed
Liability
Reinsurance -
Non-proportional
Assumed
Property
Special Property
(Fire, Allied
Lines,
Inland Marine,
Earthquake,
Burglary, Theft,
Pet) Warranty
Short-Tail
Composite

2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2024 96.9063 96.9063 96.9063 96.9063 96.9063 96.9063

Taxpayer Not Using Composite Method

2023 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785 98.4785
Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

11

Table 4 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Long-Tail Lines of Business

Accident Year
Commercial
Auto/Truck
Liability/Medical
Medical
Professional
Liability -
Claims-Made
Medical
Professional
Liability -
Occurrence
Multiple Peril
Lines
Other
Liability -
Claims-
Made
Other
Liability -
Occurrence

2025 92.7912 89.9549 84.2073 94.4611 89.6344 87.9606
2024 94.1807 92.1360 87.8094 93.3234 91.6872 90.0762
2023 95.2185 93.1025 90.1803 93.9066 92.4061 91.5784
2022 95.8620 94.4096 92.1748 94.3016 93.1601 92.5186
2021 95.3575 93.4953 92.9976 91.6759 92.3482 90.9746
2020 94.8262 93.0034 93.2158 91.2360 92.2753 90.3502
2019 95.0988 93.9636 94.0439 90.9051 92.7450 90.3437
2018 94.9804 95.1291 94.9993 91.0177 93.8378 91.9830
2017 96.4102 96.0160 96.1220 93.5200 94.9264 92.6228
2016 98.3585 97.7503 97.7902 94.8530 96.6876 94.4974

Taxpayer Not Using the Composite Method

2015 98.5513 98.5513 98.5513 96.1895 98.0033 95.8511
2014 98.5513 98.5513 98.5513 97.5045 98.5513 97.2176
Years before 2014 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2016 98.5513 98.5513 98.5513 96.9185 98.0920 96.7300

12

Table 4 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Long-Tail Lines of Business

Accident Year
Private
Passenger
Auto Liability/
Medical
Products
Liability -
Claims-Made
Products
Liability -
Occurrence
Workers'
Compensation
Long-Tail
Composite

2025 94.9556 86.9550 86.1793 86.7823 92.0262
2024 95.1115 89.6632 89.0194 86.4322 92.0595
2023 95.6012 90.7369 91.0112 86.8945 92.4617
2022 95.8576 90.5530 92.2079 87.3806 92.4240
2021 94.4178 85.5424 90.1962 83.9002 89.0997
2020 94.0255 85.8393 89.4917 82.1898 88.1551
2019 94.2553 87.2412 90.4215 82.5155 88.0992
2018 95.0550 89.0388 91.8072 84.1036 89.1661
2017 95.6473 90.2969 92.1992 84.7150 90.3858
2016 97.7282 91.5785 94.4133 86.5946 92.1457

Taxpayer Not Using the Composite Method

2015 98.5513 92.8838 95.7739 87.8065 93.4541
2014 98.5513 94.2124 97.1571 89.0414 94.7812
2013 98.5513 95.5629 98.5513 90.2995 96.1195
2012 98.5513 96.9299 98.5513 91.5813 97.4421
2011 98.5513 98.2868 98.5513 92.8867 98.5513
2010 98.5513 98.5513 98.5513 94.2154 98.5513
2009 98.5513 98.5513 98.5513 95.5661 98.5513
2008 98.5513 98.5513 98.5513 96.9334 98.5513
2007 98.5513 98.5513 98.5513 98.2913 98.5513
Years before 2007 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2016 98.5513 94.7288 96.6903 91.2579 95.0968

13

SECTION 5. REQUEST FOR COMMENTS
.01 Effect of NAIC Change on Composite Method. Section V of Notice 88-100 sets
forth a composite method for computing discounted unpaid losses for accident years that
are not separately reported on the annual statement. Beginning in 2024, the NAIC
changed Schedule P of the annual statement to require ten years of data (and a “prior”
row) to be reported for all lines of business. Previously, only two years of data were
required to be reported for some lines of business. As described in Rev. Proc. 2025-15,
the Department of the Treasury (Treasury Department) and the Internal Revenue Service
(IRS) expect that composite method discount factors, which apply with respect to accident
years not separately reported on the annual statement, will be of limited use to insurance
companies with respect to the lines of business set forth in Tables 1 and 3 following the
2024 NAIC change. This is because the 2024 NAIC change generally increases the
number of accident years being separately reported on the annual statement for these
lines of business. Nonetheless, in Rev. Proc. 2025-15, the Treasury Department and the
IRS made no change to the determination and application of composite method discount
factors to reflect the 2024 NAIC change to Schedule P. The Treasury Department and the
IRS instead requested comments regarding composite method discount factors with
respect to the lines of business set forth in Tables 1 and 3 following the NAIC change. No
comments were received.
.02 Plans Regarding Composite Method. The Treasury Department and the IRS are
making no change to the determination and application of composite method discount
factors to reflect the 2024 NAIC change to Schedule P in this revenue procedure.
Accordingly, like Rev. Proc. 2025-15, this revenue procedure provides composite method

14

discount factors for accident years that were separately reported on the annual statement
due to the 2024 NAIC change to Schedule P, although section V of Notice 88-100 provides
the composite method for computing discounted unpaid losses for accident years that are
not separately reported on the annual statement. Beginning with the revenue procedure
providing discount factors for use by insurance companies in computing discounted unpaid
losses under § 846 and discounted estimated salvage recoverable under § 832 for taxable
years beginning in 2026, the Treasury Department and the IRS expect to provide
composite method discount factors only for accident years not separately reported on the
annual statement. Accordingly, with respect to the lines of business set forth in Tables 1
and 3, the Treasury Department and the IRS expect to require that, for accident years
separately reported on the annual statement, taxpayers using the composite method must
use the same discount factors used by taxpayers not using the composite method.
Consistent with prior practice, although the annual statement does not distinguish between
cancellable accident and health insurance and other insurance designated as “Other,”
these two groups of policies would continue to be treated as if their losses were reported
separately. Set forth below, for informational purposes only, are Table 1 (parts A and B) for
the 2025 accident year and Table 3 (parts A and B) for taxable years beginning in 2025, as
they would have appeared if the proposed approach had been required for taxable years
beginning in 2025. The composite method discount factors set forth in these tables were
derived using the loss payment patterns previously determined for the 2022 determination
year under section 846(d)(3)(B)(i). See Rev. Proc. 2023-10 for background concerning
the loss payment patterns. The anticipated changes to the discount factors used by
insurance companies using the composite method to compute discounted unpaid losses
under § 846 and discounted estimated salvage recoverable under § 832 are expected to

15

change the proper time for the inclusion of the item in income or the taking of the item as a
deduction. Accordingly, affected insurance companies are expected to have a change in
method of accounting subject to § 446(e) and § 1.446-1. The Treasury Department and
the IRS anticipate providing simplified procedures for insurance companies to change their
method of accounting to use such factors in their first taxable year beginning after
December 31, 2025. For example, the Treasury Department and the IRS are considering
implementing the change on a cut-off basis, providing automatic change request
procedures, and limiting the information that must be provided on Form 3115, Application
for Change in Accounting Method.

16

Table 1 (part A)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
(Informational Purposes Only)
Taxable Year
Beginning in
Auto Physical
Damage Fidelity/Surety

Financial
Guaranty/
Mortgage
Guaranty International Other*

2025 98.0171 94.8069 94.2020 94.9732 96.3288
2026 96.5385 96.5385 96.5385 96.5385 96.5385
2027 - 2034 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Not Using Composite Method

Years after 2034 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method

2035 98.2463 98.2463 98.2463 98.2463 98.2463

Years after 2035
Use composite method discount factors published for the accident year that is two years
prior to the specified taxable year.

* For the Accident and Health line of business (other than disability income or credit disability insurance), the
discount factor for taxable years 2025 - 2034 is 98.2463 percent. This is also the discount factor used in taxable
years after 2034 for taxpayers not using the composite method. For taxpayers using the composite method, the
discount factor for losses incurred in accident year 2025 for taxable years after 2034 is the discount factor
published for the Accident and Health line of business for losses incurred in the accident year coinciding with
the taxable year.

17

Table 1 (part B)
Discount Factors Under Section 846 (percent)
For Losses Incurred in Accident Year 2025 in Short-Tail Lines of Business
(Informational Purposes Only)

Taxable Year
Beginning in
Reinsurance -
Non-
proportional
Assumed
Financial Lines
Reinsurance -
Non-
proportional
Assumed
Liability
Reinsurance -
Non-
proportional
Assumed
Property
Special
Property
(Fire,
Allied Lines,
Inland Marine,
Earthquake,
Burglary,
Theft, Pet) Warranty
Short-Tail
Composite

2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2026 96.5385 96.5385 96.5385 96.5385 96.5385 96.5385
2027 - 2034 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Not Using Composite Method

Years after 2034 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Taxpayer Using the Composite Method

2035 98.2463 98.2463 98.2463 98.2463 98.2463 98.2463

Years after 2035
Use composite method discount factors published for the accident year that is two years prior to the
specified taxable year.

18

Table 3 (part A)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business
(Informational Purposes Only)

Accident Year
Auto Physical
Damage Fidelity/Surety

Financial
Guaranty/
Mortgage
Guaranty International Other*

2025 98.0171 94.8069 94.2020 94.9732 96.3288
2024 96.9063 96.9063 96.9063 96.9063 96.9063
2023 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785
2018 98.5513 98.5513 98.5513 98.5513 98.5513
2017 98.5513 98.5513 98.5513 98.5513 98.5513
2016 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Not Using Composite Method

Years before 2016 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2016 98.5707 98.5707 98.5707 98.5707 98.5707

* For the Accident and Health line of business (other than disability income or credit disability insurance), the discount factor
for taxable year 2025 is 98.2463 percent.

19

Table 3 (part B)
Discount Factors Under Section 846 (percent)
For Taxable Years Beginning in 2025
Short-Tail Lines of Business

(Informational Purposes Only)
Accident Year
Reinsurance -
Non-
proportional
Assumed
Financial Lines
Reinsurance -
Non-
proportional
Assumed
Liability
Reinsurance -
Non-proportional
Assumed
Property

Special Property
(Fire, Allied
Lines,
Inland Marine,
Earthquake,
Burglary, Theft,
Pet) Warranty
Short-Tail
Composite

2025 94.9406 93.8058 95.3714 97.0553 98.0069 96.6054
2024 96.9063 96.9063 96.9063 96.9063 96.9063 96.9063
2023 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707
2022 98.6826 98.6826 98.6826 98.6826 98.6826 98.6826
2021 98.5999 98.5999 98.5999 98.5999 98.5999 98.5999
2020 98.4834 98.4834 98.4834 98.4834 98.4834 98.4834
2019 98.4785 98.4785 98.4785 98.4785 98.4785 98.4785
2018 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
2017 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513
2016 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Not Using Composite Method

Years before 2019 98.5513 98.5513 98.5513 98.5513 98.5513 98.5513

Taxpayer Using the Composite Method

Years before 2024 98.5707 98.5707 98.5707 98.5707 98.5707 98.5707

20

.03 Comments Regarding Composite Method.
The Treasury Department and the IRS request comments on the plans described in
section 5.02 of this revenue procedure, including:
(1) comments on whether the Treasury Department and the IRS should permit
taxpayers using the composite method to use discount factors determined using the
approach described in section 5.02 of this revenue procedure in taxable years beginning in
2024 or 2025, and also provide simplified procedures for taxpayers using the composite
method to change their method of accounting to use such factors in such taxable years;
(2) comments regarding any alternative approaches the Treasury Department and the
IRS should consider, including elimination or alteration of the composite discount method
described in Section V of Notice 88-100, either for short-tail lines of business only or for
both short-tail and long-tail lines of business; and
(3) comments on what, if any, additional guidance regarding composite method discount
factors insurance companies require.
.04 Procedures for Submitting Comments.
(1) Deadline. Written comments should be submitted by May 22, 2026.
(2) Form and manner. The subject line for the comments should include a reference to
Revenue Procedure 2026-13. All commenters are strongly encouraged to submit
comments electronically. However, comments may be submitted in one of two ways:
(a) Electronically via the Federal eRulemaking Portal at www.regulations.gov (type IRS-
2026-0134 in the search field on the regulations.gov homepage to find this revenue
procedure and submit comments); or
(b) By mail to: Internal Revenue Service, CC:PA:01:PR (Revenue Procedure 2026-13),
Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, D.C., 20044.

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(3) Publication of comments. The Treasury Department and the IRS will publish for
public availability any comment submitted electronically or on paper to its public docket on
regulations.gov.
SECTION 7. DRAFTING INFORMATION

The principal author of this revenue procedure is Grace Chang of the Office of
Associate Chief Counsel (Financial Institutions & Products). For further information
regarding this revenue procedure, contact Ms. Chang at (202) 317-4286 (not a toll-free
call).