Finance, Taxes, Insurance
EJM Wins Court Case over IRS FET Levies
Court rules IRS failed to provide precise notice of potential tax obligation.

A U.S. District Court has found that Executive Jet Management is not liable for $9.7 million in federal excise taxes the Internal Revenue Service assessed for aircraft management services the company provided for aircraft used in charter operations. The U.S. District Court for the Southern District of Ohio on November 12 found that “the government failed to provide EJM with precise and not speculative notice of EJM’s potential tax collection obligation.” Without adequate notice, the court added, “it would be unfair to hold EJM secondarily liable for taxes owed by its customers.” The IRS had sought the taxes for services provided between April 2005 and June 2009.


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