IRS enforcement efforts are reaching higher altitudes with a new initiative that will check whether deep-pocketed businesses are following tax rules on corporate-jet use. Dozens of companies and large partnerships will be audited about the high-profile perk, the Internal Revenue Service said Wednesday.
The tax code allows businesses to take deductions for the expenses of aircrafts that are bought and used in the normal course of business. Yet the IRS is concerned too many companies and their C-suite executives are mixing business and pleasure by using company-jet flights for personal reasons — and still taking business write-offs when they should not. Roughly three to four dozen new audits will start in the spring, IRS Commissioner Danny Werfel told reporters Wednesday. “It’s a complex area where IRS work has been stretched thin,” Werfel said. “With expanded resources, these aircraft audits will ensure that high-income groups aren’t flying under the radar with their tax responsibilities.” There’s a lot of money at stake when factoring in other tax breaks that businesses get on major purchases like an airplane. In the types of tax returns that are at issue, Werfel said “the amount of the deduction for aircraft travel can be in the ten …
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The tax code allows businesses to take deductions for the expenses of aircrafts that are bought and used in the normal course of business. Yet the IRS is concerned too many companies and their C-suite executives are mixing business and pleasure by using company-jet flights for personal reasons — and still taking business write-offs when they should not. Roughly three to four dozen new audits will start in the spring, IRS Commissioner Danny Werfel told reporters Wednesday. “It’s a complex area where IRS work has been stretched thin,” Werfel said. “With expanded resources, these aircraft audits will ensure that high-income groups aren’t flying under the radar with their tax responsibilities.” There’s a lot of money at stake when factoring in other tax breaks that businesses get on major purchases like an airplane. In the types of tax returns that are at issue, Werfel said “the amount of the deduction for aircraft travel can be in the ten …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]