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IRS Publishes Rates And Terminal Charge For Noncommercial Flights.

MAR. 26, 2007

Rev. Rul. 2007-17; 2007-1 C.B. 805

DATED MAR. 26, 2007
Citations: Rev. Rul. 2007-17; 2007-1 C.B. 805

Rev. Rul. 2007-17

For purposes 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.

The following chart sets forth the terminal charge and SIFL mileage rates:

 Period During Which     Terminal      SIFL Mileage


 the Flight Is Taken     Charge        Rates



 1/1/07 -- 6/30/07       $37.92        Up to 500 miles


                                       = $.2075 per mile



                                       501-1500 miles


                                       = $.1582 per mile



                                       Over 1500 miles


                                       = $.1521 per mile




The principal author of this revenue ruling is Kathleen Edmondson of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt/Government Entities). For further information regarding this revenue ruling, contact Ms. Edmondson at (202) 622-0047 (not a toll-free call).

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