HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Rev. Rul. 2011–8, page 554. Fringe benefits aircraft valuation formula. For purposes of regulations section 1.61–21(g), relating to the rule for valuing non-commercial flights on employer-provided aircraft, the Standard Industry Fare Level (SIFL) cents-per-mile rates and terminal charge in effect for the first half of 2011 are set forth.

Rev. Rul. 2011–9, page 554. Life insurance contracts. This ruling concludes that if a business receives a life insurance contract in a tax-free exchange for a life insurance contract that is excepted from the pro rata interest disallowance rule of section 264(f)(1) of the Code, the new contract received in the exchange must be tested to determine whether it, too, is excepted from that rule. Exception from the pro rata interest disallowance rule is not an attribute that carries over to a contract received in a tax-free exchange.

Rev. Proc. 2011–21, page 560. Automobile owners and lessees. This procedure provides the depreciation deduction limitations for owners of passenger automobiles (including trucks and vans) first placed in service during calendar year 2011 and amounts to be included in income by lessees of passenger automobiles first leased during calendar year 2011. Rev. Proc. 2010–18 amplified and modified.

EMPLOYEE PLANS

Notice 2011–22, page 557. Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.

Announcements of Disbarments and Suspensions begin on page 569. Finding Lists begin on page ii.