IRS Launches Audits on Business Aircraft Usage
Using funding from the Inflation Reduction Act, the IRS has announced its intent to target the use of business aircraft by companies and high-income individuals. This initiative will specifically focus on the personal use of business aircraft, which can impact the qualified business use of aircraft for depreciation purposes, the deductibility of employer-provided flights, and the reporting of taxable income to employees/owners.
This enforcement underscores the importance of accurate reporting and transparency in the use of business aircraft. It is crucial for companies and individuals to promptly assess their business aircraft’s usage and reporting practices.
The Aviation team at Helsell Fetterman is available to review aircraft structuring and reporting to ensure compliance with IRS, FAA, and state taxing authorities. If you have any concerns or would like to schedule a time to discuss your reporting and compliance issues, please reach out to Greg Pittman.
