NBAA is challenging the IRS’s position that the 7.5-percent ticket tax applies to Part 91 operations where the aircraft owner retains a management company. It has taken the dispute to the IRS itself, as well as the Treasury Department and Congress, saying these aircraft owners “simply hired a management company to provide certain support services” and shouldn’t be viewed as commercial operations subject to the ticket tax.
NBAA released its new Federal Excise Taxes Guide late last week, marking the first time the guidelines have been updated since 2005. It is intended to provide business aircraft owners, flight departments and charter operators with a basic understanding of the federal excise taxes (FET) that apply to business aircraft activity.
The U.S. Internal Revenue Service has agreed to suspend possible tax assessments against aircraft management companies now undergoing federal excise tax (FET) audits.