IRS Begins Audits of Corporate Jet Usage

The IRS has announced that it plans to begin dozens of audits related to the personal use of business aircraft after conducting few examinations of aircraft use for the past decade due to a lack of resources. The audits will focus on whether the usage of aircraft by large corporations, large partnerships and high-income taxpayers is being properly allocated between business and personal use. The number of audits could increase in the future based on the initial results and as the IRS continues hiring examiners.

The examinations are part of a larger effort by the IRS to ensure large corporations, large partnerships and high-income individual filers pay the taxes they owe. The agency has already collected $482 million as part of its efforts to recoup taxes owed by 1,600 millionaires. The IRS is also pursuing multi-million-dollar balance sheet discrepancies at partnerships and ramping up audits of more than 75 of the largest partnerships using artificial intelligence.