IRS issues adjusted SIFL rates for first half of 2021
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Wednesday, June 23, 2021

IRS issues adjusted SIFL rates for first half of 2021

By Payroll and Entitlements Editorial Staff

The IRS has released the applicable terminal charge and the Standard Industry Fare Level (SIFL) mileage rates for determining the value of noncommercial flights on employer-provided aircraft in effect for the first half of 2021 for purposes of the taxation of fringe benefits. Further, in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) was enacted, directing the Treasury Department to allot up to $25 billion for domestic carriers to cover payroll expenses via grants and promissory notes, known as the Payroll Support Program (PSP). Therefore, the IRS has provided three SIFL rates: (1) the Unadjusted SIFL Rate; (2) the SIFL Rate Adjusted for PSP Grants; and (3) the SIFL Rate Adjusted for PSP Grants and Promissory Notes. The value of a flight is determined under the base aircraft valuation formula 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 Reg. §1.61-21(g)(7) and then adding the applicable terminal charge.

For flights taken during the period from January 1, 2021, through June 30, 2021, the terminal charge is $61.88, and the SIFL rates are: $.3385 per mile for the first 500 miles, $.2581 per mile 501 through 1,500 miles, and $.2481 per mile over 1,500 miles. Moreover, for flights taken during the period from January 1, 2021, through June 30, 2021, the terminal charge is $44.35, and SIFL rate adjusted for PSP grants are: $.2426 per mile for the first 500 miles, $.1850 per mile 501 through 1,500 miles, and $.1778 per mile over 1,500 miles. Lastly, for flights taken during the period from January 1, 2021, through June 30, 2021, the terminal charge is $38.03, and SIFL Rate Adjusted for PSP Grants and Promissory Notes are: $.2080 per mile for the first 500 miles, $.1586 per mile 501 through 1,500 miles, and $.1525 per mile over 1,500 miles. (Rev. Rul. 2021-11, IRB 2021-24, June 14, 2021.)

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