February 24, 2024
Aviation International News is reporting the Internal Revenue Service has started its previously announced audits of private jet owners.
The Internal Revenue Service has started its audits of private jet owners. They are long and extensive.
According to Aviation International News, the initial audits are targeting West Coast UHNWs and private companies.
Aviation attorney David Shannon told attendees at a recent business aviation conference, “The IDR (the IRS Information Document Request) we received…is twice as long as some IDRs are, and the things they’re asking for are extremely thorough.”
He continued, “We’re at the stage where we need to treat this with the level of seriousness that the situation requires.”
He said there was a lengthy list of questions on the initial audits.
According to AIN, Shannon said, “Most people do not have some of the things on this list.”
The initiative was revealed earlier this year.
In a release, the national tax collector said, “The audits will be focused on aircraft usage by large corporations, large partnerships, and high-income taxpayers and whether for tax purposes the use of jets is being properly allocated between business and personal reasons.”
IRS Commissioner Danny Werfel added, “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a complex area where IRS work has been stretched thin. With expanded resources, IRS work in this area will take off. These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.”
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