1. Home
  2. |Insights
  3. |IRS to Kickoff Audit Campaign Focused on Business Aircraft Users

IRS to Kickoff Audit Campaign Focused on Business Aircraft Users

What You Need to Know

  • Key takeaway #1

    Individual and corporate taxpayers that improperly reported personal aircraft use as business use may face increased taxable income and penalties and/or denial of deductions.

  • Key takeaway #2

    Corporate taxpayers that allocated the affiliated individual’s use of the corporate jet as business use may be denied deduction of such use.

  • Key takeaway #3

    Taxpayers may wish to preemptively audit the prior deductions and, if the target of an IRS audit, seek advice from tax professionals with specific expertise in business aviation tax and IRS audits.

Client Alert | 1 min read | 02.29.24

Last week, the IRS announced plans to begin a campaign to audit personal use of business aircraft. The audits will focus on whether large corporations, partnerships and high-and ultra-high net worth aircraft owners have properly reported their business and personal aircraft usage for tax purposes, with a particular focus on ensuring that owners are only taking deductions to which they are entitled. Given the value of an aircraft, the amount of a deduction for aircraft related expenditures on a given taxpayer’s return can be in the tens of millions of dollars, and with more than 10,000 corporate jets operating in the U.S., IRS Commissioner Daniel Werfel recognized that much is at stake with this campaign.  The audit campaign is expected to focus initially on multinational and domestic corporations and complex partnerships but is expected to expand from there.

Contacts

Insights

Client Alert | 3 min read | 06.03.26

Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases

In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices....

View All Insights