The standard industry fare level rates that employers will use to calculate the value of trips taken aboard company aircraft during the second half of 2012 were issued Aug. 14 by the U.S. Department of Transportation. The rates have increased about 4 ½ percent from those that were in effect for the first half of the year.
To see the new rates click here.
Employers must keep records showing the purpose of each one-way flight, each passenger’s identity and the number of passengers and seats on company aircraft in order to substantiate business flights and properly value personal flights.
While DOT calculates the rates, adjusting them twice per year to reflect current market conditions, IRS normally releases a revenue ruling instructing taxpayers on how to use the SIFL rates for tax purposes. IRS has not yet released a revenue ruling for the second half of 2012, but employers may use the rates in anticipation of the upcoming IRS guidance.
For additional information about fringe benefits, see Thompson’s employee benefits library, including the Employer’s Guide to Fringe Benefit Rules.