IRS Issues New NPRM for Private Aircraft Use

 - July 3, 2007, 5:11 AM

The Internal Revenue Service (IRS) issued a notice of proposed rulemaking (NPRM) relating to the “deductions for entertainment use of business aircraft.” If the NPRM
is made final as proposed, employees and employers will be subject to specific regulations about what may be deducted when a business aircraft is used for personal reasons. The regulations have been in the works for some time and are a more formal and long-term answer to the IRS’s previously issued Notice 2005-45. According to NBAA, which said it met with the IRS on a number of occasions related to the prior notice, that document “skewed results and was administratively burdensome and punitive.” The association said an initial review of the new NPRM shows “improvements over previous guidance.” Comments are due September 13.