Companies that allow executives or their families and guests to fly on their aircraft for certain personal reasons will most likely be adversely affected by IRS Notice 2005-45’s deduction limitations. Because the Internal Revenue Service methodology counts every passenger on every flight and for what reason they are on board, this notice–issued in June–has created “substantial deduction limitations even for companies that have no purely personal flights but sometimes allow spouses or children to fly along on business trips,” according to NBAA. The deadline for taxpayers to comment to the IRS is Monday. While NBAA said it will file comments with the IRS on behalf of the industry, “your comments, as taxpayers affected by the ruling, would be invaluable,” it said. “The more comments from companies opposing the IRS methodology, the better the chances are that the IRS will re-think its position.” NBAA advises operators to coordinate responses with their company’s tax and legal departments.
Comments Due Monday on IRS Deductions Notice
- April 16, 2007, 11:34 AM