IRS Revenue Ruling
2001-42

 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 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.


REV. RUL. 2001-42

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 semiannually.

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

Period During Which                  Terminal                                   SIFL Mileage
  the Flight Is Taken                      Charge                                         Rate

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