{"id":1329,"date":"2024-02-22T06:39:58","date_gmt":"2024-02-22T06:39:58","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/02\/22\/the-irs-will-pursue-business-private-jet-usage-in-a-new-round-of-audits-on-high-wealth-taxpayers\/"},"modified":"2024-02-22T06:39:58","modified_gmt":"2024-02-22T06:39:58","slug":"the-irs-will-pursue-business-private-jet-usage-in-a-new-round-of-audits-on-high-wealth-taxpayers","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/02\/22\/the-irs-will-pursue-business-private-jet-usage-in-a-new-round-of-audits-on-high-wealth-taxpayers\/","title":{"rendered":"The IRS will pursue business private jet usage in a new round of audits on high-wealth taxpayers"},"content":{"rendered":"
\n

First, there were\u00a0trackers on Taylor Swift\u00a0and other celebrities\u2019 private jet usage. Now, there will be more scrutiny on executives\u2019 personal use of business aircraft who write it off as a tax expense.<\/p>\n

IRS leadership said Wednesday that the agency will start conducting dozens of audits on businesses\u2019 private jets and how they are used personally by executives and written off as a tax deduction \u2014 as part of the agency\u2019s ongoing mission of going after high-wealth tax cheats who game the tax system at the expense of American taxpayers.<\/p>\n

<\/div>\n

The audits will focus on aircraft used by large corporations and high-income taxpayers and whether the tax purpose of the jet use is being properly allocated, the IRS says.<\/p>\n

\u201cAt this time of year, when millions of hardworking taxpayers are working on their taxes, we want them to feel confident that everyone is playing by the same rules,\u201d IRS Commissioner Daniel Werfel said on a call with reporters to preview the announcement.\u00a0Tax season began Jan. 29.<\/p>\n

\u201cThese aircraft audits will help ensure high-income groups aren\u2019t flying under the radar with their tax responsibilities,\u201d he said.<\/p>\n

There are more than 10,000 corporate jets in the US., according to the IRS, valued at tens of millions of dollars and many can be fully deducted.<\/p>\n

The Tax Cuts and Jobs Act, passed during the Trump administration, allowed for 100% bonus depreciation and expensing of private jets \u2014 which allowed taxpayers to write off the cost of aircraft purchased and put into service between September 2017 and January 2023.<\/p>\n

Werfel said the federal tax collector will use resources from Democrats\u2019 Inflation Reduction Act to more closely examine private jet usage \u2014 which has not been closely scrutinized during the past decade as funding fell sharply in the last decade.\u201cOur audit rates have been anemic,\u201d he said on the call. An April 2023 IRS\u00a0report on tax audit data\u00a0states that \u201ccontinued resource constraints have limited the agency\u2019s ability to address high-end noncompliance\u201d stating that in tax year 2018, audit rates for people making more than $10 million were 9.2%, down from 13.6% in 2012. And in the same time period, overall corporate audit rates fell from 1.3% to .6%.<\/p>\n

Werfel said audits related to aircraft usage could increase in the future depending on the results of the initial audits and as the IRS continues hiring more examiners.<\/p>\n

\u201cTo be clear, that doesn\u2019t mean everyone in a high-income category partnership or corporation is evading or avoiding their tax responsibility,\u201d Werfel said. \u201cBut it does mean that there\u2019s more work to do for the IRS to make sure people are paying what they owe.\u201d<\/p>\n<\/p>\n

This post appeared first on NBC NEWS<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

First, there were\u00a0trackers on Taylor Swift\u00a0and other celebrities\u2019 private jet usage. Now, there will be more scrutiny on executives\u2019 personal use of business aircraft who write it off as a tax expense. IRS leadership said Wednesday that the agency will start conducting dozens of audits on businesses\u2019 private jets and how they are used personally […]<\/p>\n","protected":false},"author":0,"featured_media":1330,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1329"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/1330"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}