IRS Publishes Rates And Terminal Charge For Noncommercial Flights.
Rev. Rul. 2001-42; 2001-2 C.B. 223
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Index Termsgross incomefringe benefitsvaluation
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-23394 (1 original page)
- Tax Analysts Electronic Citation2001 TNT 175-13
Rev. Rul. 2001-42
[1] For purposes of section 1.61-21(g) of the Income Tax Regulations, relating to the rule for valuing noncommercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for the second half of 2001 are set forth.
[2] For purpose of the taxation of fringe benefits under section 61 of the Internal Revenue Code, section 1.61-21(g) of the Income Tax Regulations provides a rule for valuing noncommercial flights on employer-provided aircraft. Section 1.61-21(g)(5) provides an aircraft valuation formula to determine the value of such flights. The value of a flight is determined under the base aircraft valuation formula (also known as the Standard Industry Fare Level formula or SIFL) by multiplying the SIFL cents-per-mile rates applicable for the period during which the flight was taken by the appropriate aircraft multiple provided in section 1.61-21(g)(7) and then adding the applicable terminal charge. The SIFL cents-per-mile rates in the formula and the terminal charge are calculated by the Department of Transportation and are reviewed semi-annually.
[3] The following chart sets, forth the terminal charges and SIFL mileage rates:
Period During Which Terminal SIFL Mileage
the Flight Is Taken Charge Rates
7/1/01 - 12/31/01 $36.88 Up to 500 miles
= $.2017 per mile
501-1500 miles
= $.1538 per mile
Over 1500 miles
= $.1479 per mile
DRAFTING INFORMATION
[4] The principle [sic] author of this revenue ruling is Kathleen Edmondson of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding this revenue ruling, contact Ms. Edmondson at (202) 622- 6040 (not a toll-free call).
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Index Termsgross incomefringe benefitsvaluation
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2001-23394 (1 original page)
- Tax Analysts Electronic Citation2001 TNT 175-13