IRS Increases Audits on Personal Use of Business Aircraft

The IRS is expanding its ongoing efforts to improve tax compliance in high income categories with dozens of audits on personal use of business aircraft. Focused primarily on large corporations, large partnerships and other high income taxpayers, they will scrutinize the allocation between business and personal use to ensure accuracy. “During tax season, millions of people are doing the right thing by filing and paying their taxes, and they should have confidence that everyone is also following the law,” said IRS Commissioner Danny Werfel,

“These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.” These corporate jet usage audits include issue-focused examinations, taxpayer outreach and education, tax form changes, and focusing on particular issues that present a high risk of noncompliance. “The IRS continues to increase scrutiny on high-income taxpayers as we work to reverse the historic low audit rates and limited focus that the wealthiest individuals and organizations faced in the years that predated the Inflation Reduction Act,” Werfel said. In addition to the work on corporate jets,the IRS has a variety of efforts underway to improve tax compliance in complex, overlooked high-dollar areas where the agency did not have adequate resources prior to Inflation Reduction Act funding.

Scroll to Top