The IRS has begun a half-dozen audits of what will be an initial tranche of 50 into the use of business jets. Based on the first few, “it's going to be very intense and it's going to be something that the industry hasn't seen on this level,” warned David Shannon, a partner with and chair of the business aviation practice for Lewis Brisbois, yesterday at the NBAA Regional Forum in White Plains, New York.
In February, the agency revealed plans to launch “dozens” of audits on business aircraft use to ensure that large corporations, partnerships, and high-income taxpayers are properly allocating between personal and business use for tax purposes. Additional funding received from the Inflation Reduction Act enabled the IRS to increase staff so it could “closely examine this area, which has not been closely scrutinized during the past decade,” the agency said.
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