IRS Revenue Ruling
1999-12

 
 Code Sec. 61

<<FULL TEXT>>

26 CFR 1.61-21: Taxation of fringe benefits.

Fringe benefits aircraft valuation formula. For purposes Of section
1.61-21(g) of the Income Tax Regulations, relating to the rule of valuing
noncommercial Rights on employer-provided aircraft, the Standard Industry
Fare Level (SIFL) cents-per-mile rates and terminal charges in effect for
the first half of 1999 are set forth.


REV. RUL 99-12

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 Right 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 Sight 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 charges and SIFL mileage
rates:

Period During Which Terminal SIFL Mileage
the Flight Was Taken Charge Rates
-------------------- -------- ------------
1/1/99 - 6/30/99 $32.69 Up to 500 miles = $.1788 per mile
501-1500 miles = $.1364 per mile
Over 1500 miles = $.1311 per mile


DRAFTING INFORMATION

The principle author of this revenue ruling is Kathleen Edmondson of
the OFfice of the Associate Chief Counsel (Employee Benefits and Exempt
Organizations). For further information regarding this revenue ruling,
contact Ms. Edmondson on (202) 622-6080 (not a toll-free call).

<<END RULING>>
 

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