Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

26 CFR 1.61–21: Taxation of fringe benefits.

Rev. Rul. 2018–26

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

Period During Which the

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 centsper-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 charge and SIFL mileage rates:

Flight Is Taken Terminal Charge SIFL Mileage Rates 7/1/18 - 12/31/18 $42.88 Up to 500 miles - $.2346 per mile

501–1500 miles - $.1788 per mile Over 1500 miles - $.1719 per mile

DRAFTING INFORMATION

The principal author of this revenue ruling is Kathleen Edmondson of the Of

fice of Associate Chief Counsel (Tax Exempt/Government Entities). For further information regarding this revenue ruling,

contact Ms. Edmondson at (202) 3176798 (not a toll-free number).

October 1, 2018 520 Bulletin No. 2018–40