These synopses are intended only as aids to the reader in

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 Gevity 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-provided aircraft, the Standard Industry Fare Level (SIFL) centsper-mile rates and terminal charges in effect for the first half

of 2021 are set forth.

Finding Lists begin on page ii.





Bulletin No. 2021–24

June 14, 2021

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and enforce 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 official 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 substantive 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 otherwise indicated. Procedures relating solely to matters of internal 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 rulings 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, disbarment 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

1

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, “acqui­escence in result only”

indicates disagree­ment 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 hold­ing 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 Ser­vice will not

follow the holding on a na­tionwide 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

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 1.61-21(g) of the

Income Tax Regulations provides a rule

for valuing noncommercial flights on

employer-provided aircraft. Section 1.6121(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 cents-per-mile rates in the formula

and the terminal charge are calculated by

the Department of Transportation (DOT)

and are reviewed semi-annually.

According to DOT, due to the effect of

the COVID-19 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 6-month 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 employer-provided air­

craft under section 1.61-21(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

Charge

SIFL Mileage

Rates

1/1/21 - 6/30/21

$61.88

Up to 500 miles

= $.3385 per mile

501-1500 miles

= $.2581 per mile

SIFL Rate Adjusted for PSP Grants

Over 1500 miles

= $.2481 per mile

1/1/21 - 6/30/21

$44.35

Up to 500 miles

= $.2426 per mile

501-1500 miles

= $.1850 per mile

SIFL Rate Adjusted for PSP Grants and Promissory Notes

Over 1500 miles

= $.1778 per mile

1/1/21 - 6/30/21

$38.03

Up to 500 miles

= $.2080 per mile

501-1500 miles

= $.1586 per mile

Over 1500 miles

= $.1525 per mile

June 14, 2021

1200

Bulletin No. 2021–24

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) 317-6798 (not a

toll-free number).

Bulletin No. 2021–24

1201

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.

Bulletin No. 2021–24

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.

i

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

Numerical Finding List1

Bulletin 2021–24

AOD:

2021-1, 2021-15 I.R.B. 985

2021-2, 2021-21 I.R.B. 1156

2021-3, 2021-24 I.R.B. 1199

Announcements:

2021-01, 2021-04 I.R.B. 506

2021-02, 2021-08 I.R.B. 892

2021-03, 2021-08 I.R.B. 892

2021-04, 2021-09 I.R.B. 895

2021-05, 2021-13 I.R.B. 965

2021-06, 2021-15 I.R.B. 1011

2021-07, 2021-15 I.R.B. 1061

2021-08, 2021-18 I.R.B. 1146

2021-09, 2021-20 I.R.B. 1155

2021-10, 2021-22 I.R.B. 1170

2021-11, 2021-23 I.R.B. 1196

Notices:

2021-01, 2021-02 I.R.B. 315

2021-03, 2021-02 I.R.B. 316

2021-04, 2021-02 I.R.B. 319

2021-02, 2021-03 I.R.B. 478

2021-05, 2021-03 I.R.B. 479

2021-07, 2021-03 I.R.B. 482

2021-09, 2021-05 I.R.B. 678

2021-06, 2021-06 I.R.B. 822

2021-08, 2021-06 I.R.B. 823

2021-11, 2021-06 I.R.B. 827

2021-12, 2021-06 I.R.B. 828

2021-13, 2021-06 I.R.B. 832

2021-10, 2021-07 I.R.B. 888

2021-15, 2021-10 I.R.B. 898

2021-16, 2021-10 I.R.B. 907

2021-18, 2021-11 I.R.B. 911

2021-19, 2021-11 I.R.B. 920

2021-20, 2021-11 I.R.B. 922

2021-17, 2021-14 I.R.B. 984

2021-21, 2021-15 I.R.B. 986

2021-22, 2021-15 I.R.B. 987

2021-23, 2021-16 I.R.B. 1113

2021-25, 2021-17 I.R.B. 1118

2021-24, 2021-18 I.R.B. 1122

2021-27, 2021-18 I.R.B. 1125

2021-28, 2021-18 I.R.B. 1130

2021-29, 2021-19 I.R.B. 1149

2021-30, 2021-19 I.R.B. 1149

2021-26, 2021-21 I.R.B. 1157

2021-32, 2021-21 I.R.B. 1159

2021-31, 2021-23 I.R.B. 1173

2021-33, 2021-23 I.R.B. 1190

2021-34, 2021-23 I.R.B. 1194

Proposed Regulations:

Treasury Decisions:—Continued

REG-130081-19, 2021-02 I.R.B. 321

REG-114615-16, 2021-03 I.R.B. 489

REG-111950-20, 2021-05 I.R.B. 683

REG-115057-20, 2021-05 I.R.B. 714

REG-121095-19, 2021-18 I.R.B. 1131

9938, 2021-07 I.R.B. 838

9944, 2021-16 I.R.B. 1062

Revenue Procedures:

2021-01, 2021-01 I.R.B. 1

2021-02, 2021-01 I.R.B. 116

2021-03, 2021-01 I.R.B. 140

2021-04, 2021-01 I.R.B. 157

2021-05, 2021-01 I.R.B. 250

2021-07, 2021-01 I.R.B. 290

2021-09, 2021-03 I.R.B. 485

2021-08, 2021-04 I.R.B. 502

2021-10, 2021-04 I.R.B. 503

2021-12, 2021-05 I.R.B. 681

2021-11, 2021-06 I.R.B. 833

2021-15, 2021-08 I.R.B. 891

2021-17, 2021-15 I.R.B. 991

2021-18, 2021-15 I.R.B. 1007

2021-19, 2021-15 I.R.B. 1008

2021-21, 2021-17 I.R.B. 1118

2021-20, 2021-19 I.R.B. 1150

2021-23, 2021-20 I.R.B. 1153

2021-25, 2021-21 I.R.B. 1161

2021-26, 2021-22 I.R.B. 1163

Revenue Rulings:

2021-01, 2021-02 I.R.B. 294

2021-02, 2021-04 I.R.B. 495

2021-03, 2021-05 I.R.B. 674

2021-04, 2021-06 I.R.B. 724

2021-05, 2021-10 I.R.B. 896

2021-06, 2021-12 I.R.B. 946

2021-07, 2021-14 I.R.B. 982

2021-08, 2021-18 I.R.B. 1120

2021-09, 2021-23 I.R.B. 1171

2021-11, 2021-24 I.R.B. 1200

Treasury Decisions:

9925, 2021-02 I.R.B. 296

9940, 2021-02 I.R.B. 311

9932, 2021-03 I.R.B. 345

9939, 2021-03 I.R.B. 376

9941, 2021-03 I.R.B. 396

9942, 2021-03 I.R.B. 450

9937, 2021-04 I.R.B. 495

9936, 2021-05 I.R.B. 508

9943, 2021-05 I.R.B. 577

9945, 2021-05 I.R.B. 627

9946, 2021-06 I.R.B. 726

9947, 2021-06 I.R.B. 748

9948, 2021-06 I.R.B. 801

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.

1

June 14, 2021

ii

Bulletin No. 2021–24

Finding List of Current Actions on

Previously Published Items1

Bulletin 2021–24

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.

1

Bulletin No. 2021–24

iii

June 14, 2021

Internal Revenue Service

Washington, DC 20224

Official Business

Penalty for Private Use, $300

INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue

Bulletins are available at www.irs.gov/irb/.

We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,

we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page

www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.

NW, IR-6230 Washington, DC 20224.