Internal Revenue Bulletin 2021-24 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2021–24
June 14, 2021
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.
EMPLOYMENT TAX
AOD 2021-3, page 1199.
Nonacquiescence to the holdings that Gevity, rather than its
clients, had “control of the payment of wages” and that Gevi-
ty was the statutory employer under I.R.C. § 3401(d).
INCOME TAX
Rev. Rul. 2021-11, page 1200.
Fringe benefits aircraft valuation formula. For purposes of
section 1.61-21(g) of the Income Tax Regulations, relating to
the rule for valuing non-commercial flights on employer-pro-
vided aircraft, the Standard Industry Fare Level (SIFL) cents-
per-mile rates and terminal charges in effect for the first half
of 2021 are set forth.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
June 14, 2021 Bulletin No. 2021–24

Actions Relating to Court
Decisions
It is the policy of the Internal Reve­
nue Service to announce at an early date
whether it will follow the holdings in cer­
tain cases. An Action on Decision is the
document making such an announcement.
An Action on Decision will be issued at
the discretion of the Service only on un­
appealed issues decided adverse to the
government. Generally, an Action on De­
cision is issued where its guidance would
be helpful to Service personnel working
with the same or similar issues. Unlike a
Treasury Regulation or a Revenue Ruling,
an Action on Decision is not an affirma­
tive statement of Service position. It is not
intended to serve as public guidance and
may not be cited as precedent.
Actions on Decisions shall be relied
upon within the Service only as conclu­
sions applying the law to the facts in the
particular case at the time the Action on
Decision was issued. Caution should be
exercised in extending the recommenda­
tion of the Action on Decision to similar
cases where the facts are different. More­
over, the recommendation in the Action
on Decision may be superseded by new
legislation, regulations, rulings, cases, or
Actions on Decisions.
Prior to 1991, the Service published
acquiescence or nonacquiescence only in
certain regular Tax Court opinions. The
Service has expanded its acquiescence
program to include other civil tax cases
where guidance is determined to be help­
ful. Accordingly, the Service now may
acquiesce or nonacquiesce in the holdings
of memorandum Tax Court opinions, as
well as those of the United States District
Courts, Claims Court, and Circuit Courts
of Appeal. Regardless of the court decid­
ing the case, the recommendation of any
Action on Decision will be published in
the Internal Revenue Bulletin.
The recommendation in every Action
on Decision will be summarized as ac­
quiescence, acquiescence in result only,
or nonacquiescence. Both “acquies­
cence” and “acquiescence in result only”
mean that the Service accepts the holding
of the court in a case and that the Ser­
vice will follow it in disposing of cases
with the same controlling facts. How­
ever, “acqui escence” indicates neither
approval nor disapproval of the reasons
assigned by the court for its conclusions;
whereas, “acqui escence in result only”
indicates disagree ment or concern with
some or all of those reasons. “Nonacqui­
escence” signifies that, although no fur­
ther review was sought, the Service does
not agree with the hold ing of the court
and, generally, will not follow the deci­
sion in disposing of cases involving other
taxpayers. In reference to an opinion of a
circuit court of appeals, a “nonacquies­
cence” indicates that the Ser vice will not
follow the holding on a na tionwide ba­
sis. However, the Service will recognize
the precedential impact of the opinion on
cases arising within the venue of the de­
ciding circuit.
The Commissioner does NOT ACQUI­
ESCE in the following decision:
TriNet Group, Inc. v. United States
of America, 979 F.3d 1311 (11th Cir.
2020).
1
1
Nonacquiescence to the holdings that Gevity, rather than its clients, had “control of the payment of wages” and that Gevity was the statutory employer under I.R.C. § 3401(d).
Bulletin No. 2021–24 1199 June 14, 2021

Part I
Rev. Rul. 2021-11
For purposes of the taxation of fringe
benefits under section 61 of the Internal
Revenue Code, section 1.61­21(g) of the
Income Tax Regulations provides a rule
for valuing noncommercial flights on
employer­provided 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 cents­per­mile rates applicable
for the period during which the flight was
taken by the appropriate aircraft multiple
provided in section 1.61­21(g)(7) and then
adding the applicable terminal charge. The
SIFL cents­per­mile rates in the formula
and the terminal charge are calculated by
the Department of Transportation (DOT)
and are reviewed semi­annually.
According to DOT, due to the effect of
the COVID­19 pandemic, airline indus­
try capacity (as measured by airline seat
miles) was reduced faster than airline in­
dustry expenses were reduced. Generally,
the SIFL rate is the result of airline indus­
try expenses divided by airline seat miles.
Because airline seat miles were reduced
faster than airline industry expenses, the
SIFL rate for the 6­month Tax Period Ef­
fective 1/1/2021 increased substantially.
Furthermore, in March 2020, the Coro­
navirus Aid, Relief, and Economic Securi­
ty Act was enacted, directing the Treasury
Department to allot up to $25 billion for
domestic carriers to cover payroll expens­
es via grants and promissory notes, known
as the Payroll Support Program (PSP). The
PSP grants and PSP promissory notes off­
set airline industry expenses. Accordingly,
DOT provided two alternatives to incorpo­
rate differing levels of the PSP into the SIFL
rate calculations to both account for the PSP
in the rate calculations and to mitigate the
pandemic impact on the SIFL rate. One cal­
culation adjusts the SIFL rates to account for
PSP grants only while the other calculation
adjusts the SIFL rates to account for both the
PSP grants and PSP promissory notes.
This revenue ruling contains these
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.
Taxpayers may use any of the three rates
when determining the value on noncom­
mercial flights of employer­provided air­
craft under section 1.61­21(g).
The following charts set forth the ter­
minal charges and SIFL mileage rates:
Unadjusted SIFL Rate
Period During Which

the Flight Is Taken
Terminal SIFL Mileage
Charge Rates
1/1/21 ­ 6/30/21 $61.88 Up to 500 miles
= $.3385 per mile
501­1500 miles
= $.2581 per mile
Over 1500 miles
= $.2481 per mile
SIFL Rate Adjusted for PSP Grants
1/1/21 ­ 6/30/21 $44.35 Up to 500 miles
= $.2426 per mile
501­1500 miles
= $.1850 per mile
Over 1500 miles
= $.1778 per mile
SIFL Rate Adjusted for PSP Grants and Promissory Notes
1/1/21 ­ 6/30/21 $38.03 Up to 500 miles
= $.2080 per mile
501­1500 miles
= $.1586 per mile
Over 1500 miles
= $.1525 per mile
June 14, 2021 1200 Bulletin No. 2021–24

Bulletin No. 2021–24 1201 June 14, 2021
DRAFTING INFORMATION
The principal author of this revenue
ruling is Kathleen Edmondson of the Of­
fice of Associate Chief Counsel (Employ­
ee Benefits, Exempt Organizations and
Employment Taxes). For further informa­
tion regarding this revenue ruling, contact
Ms. Edmondson at (202) 317­6798 (not a
toll­free number).

Bulletin No. 2021–24 i June 14, 2021
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub­
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap­
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be­
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul­
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub­
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub­
lished ruling that is not considered deter­
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub­
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous­
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul­
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas­
es in litigation, or the outcome of a Ser­
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

June 14, 2021 ii Bulletin No. 2021–24
Numerical Finding List
1
Bulletin 2021–24
AOD:
2021­1, 2021­15 I.R.B. 985
2021­2, 2021­21 I.R.B. 1156
2021­3, 2021­24 I.R.B. 1199
Announcements:
2021­01, 2021­04 I.R.B. 506
2021­02, 2021­08 I.R.B. 892
2021­03, 2021­08 I.R.B. 892
2021­04, 2021­09 I.R.B. 895
2021­05, 2021­13 I.R.B. 965
2021­06, 2021­15 I.R.B. 1011
2021­07, 2021­15 I.R.B. 1061
2021­08, 2021­18 I.R.B. 1146
2021­09, 2021­20 I.R.B. 1155
2021­10, 2021­22 I.R.B. 1170
2021­11, 2021­23 I.R.B. 1196
Notices:
2021­01, 2021­02 I.R.B. 315
2021­03, 2021­02 I.R.B. 316
2021­04, 2021­02 I.R.B. 319
2021­02, 2021­03 I.R.B. 478
2021­05, 2021­03 I.R.B. 479
2021­07, 2021­03 I.R.B. 482
2021­09, 2021­05 I.R.B. 678
2021­06, 2021­06 I.R.B. 822
2021­08, 2021­06 I.R.B. 823
2021­11, 2021­06 I.R.B. 827
2021­12, 2021­06 I.R.B. 828
2021­13, 2021­06 I.R.B. 832
2021­10, 2021­07 I.R.B. 888
2021­15, 2021­10 I.R.B. 898
2021­16, 2021­10 I.R.B. 907
2021­18, 2021­11 I.R.B. 911
2021­19, 2021­11 I.R.B. 920
2021­20, 2021­11 I.R.B. 922
2021­17, 2021­14 I.R.B. 984
2021­21, 2021­15 I.R.B. 986
2021­22, 2021­15 I.R.B. 987
2021­23, 2021­16 I.R.B. 1113
2021­25, 2021­17 I.R.B. 1118
2021­24, 2021­18 I.R.B. 1122
2021­27, 2021­18 I.R.B. 1125
2021­28, 2021­18 I.R.B. 1130
2021­29, 2021­19 I.R.B. 1149
2021­30, 2021­19 I.R.B. 1149
2021­26, 2021­21 I.R.B. 1157
2021­32, 2021­21 I.R.B. 1159
2021­31, 2021­23 I.R.B. 1173
2021­33, 2021­23 I.R.B. 1190
2021­34, 2021­23 I.R.B. 1194
Proposed Regulations:
REG­130081­19, 2021­02 I.R.B. 321
REG­114615­16, 2021­03 I.R.B. 489
REG­111950­20, 2021­05 I.R.B. 683
REG­115057­20, 2021­05 I.R.B. 714
REG­121095­19, 2021­18 I.R.B. 1131
Revenue Procedures:
2021­01, 2021­01 I.R.B. 1
2021­02, 2021­01 I.R.B. 116
2021­03, 2021­01 I.R.B. 140
2021­04, 2021­01 I.R.B. 157
2021­05, 2021­01 I.R.B. 250
2021­07, 2021­01 I.R.B. 290
2021­09, 2021­03 I.R.B. 485
2021­08, 2021­04 I.R.B. 502
2021­10, 2021­04 I.R.B. 503
2021­12, 2021­05 I.R.B. 681
2021­11, 2021­06 I.R.B. 833
2021­15, 2021­08 I.R.B. 891
2021­17, 2021­15 I.R.B. 991
2021­18, 2021­15 I.R.B. 1007
2021­19, 2021­15 I.R.B. 1008
2021­21, 2021­17 I.R.B. 1118
2021­20, 2021­19 I.R.B. 1150
2021­23, 2021­20 I.R.B. 1153
2021­25, 2021­21 I.R.B. 1161
2021­26, 2021­22 I.R.B. 1163
Revenue Rulings:
2021­01, 2021­02 I.R.B. 294
2021­02, 2021­04 I.R.B. 495
2021­03, 2021­05 I.R.B. 674
2021­04, 2021­06 I.R.B. 724
2021­05, 2021­10 I.R.B. 896
2021­06, 2021­12 I.R.B. 946
2021­07, 2021­14 I.R.B. 982
2021­08, 2021­18 I.R.B. 1120
2021­09, 2021­23 I.R.B. 1171
2021­11, 2021­24 I.R.B. 1200
Treasury Decisions:
9925, 2021­02 I.R.B. 296
9940, 2021­02 I.R.B. 311
9932, 2021­03 I.R.B. 345
9939, 2021­03 I.R.B. 376
9941, 2021­03 I.R.B. 396
9942, 2021­03 I.R.B. 450
9937, 2021­04 I.R.B. 495
9936, 2021­05 I.R.B. 508
9943, 2021­05 I.R.B. 577
9945, 2021­05 I.R.B. 627
9946, 2021­06 I.R.B. 726
9947, 2021­06 I.R.B. 748
9948, 2021­06 I.R.B. 801
Treasury Decisions:—Continued
9938, 2021­07 I.R.B. 838
9944, 2021­16 I.R.B. 1062
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin
2020–52, dated December 27, 2020.

Bulletin No. 2021–24 iii June 14, 2021
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2021–24
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin
2020–52, dated December 27, 2020.

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