The Internal Revenue Service plans audits the use of business-owned aircraft to see if their utilization is being properly split between business and personal reasons.It is part of a continuing effort to monitor tax payments by high-income individuals. For example, the IRS is continuing to pursue millionaires that have not paid hundreds of millions of dollars in tax debt.
With the jet audits, the number could increase in the future following initial results and as the IRS continues hiring additional examiners.
‘These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities,” IRS Commissioner Danny Werfel said in a prepared statement.
The IRS noted that use of a company aircraft must be allocated between business use and personal use. Use of a company jet for personal travel usually results in income for the individual travelling and can have on certain business deductions.
