American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

The IRS will pursue business private jet usage in a new round of audits on high-wealth taxpayers

by admin February 22, 2024
February 22, 2024
The IRS will pursue business private jet usage in a new round of audits on high-wealth taxpayers

First, there were trackers on Taylor Swift and other celebrities’ private jet usage. Now, there will be more scrutiny on executives’ personal use of business aircraft who write it off as a tax expense.

IRS leadership said Wednesday that the agency will start conducting dozens of audits on businesses’ private jets and how they are used personally by executives and written off as a tax deduction — as part of the agency’s ongoing mission of going after high-wealth tax cheats who game the tax system at the expense of American taxpayers.

The audits will focus on aircraft used by large corporations and high-income taxpayers and whether the tax purpose of the jet use is being properly allocated, the IRS says.

“At this time of year, when millions of hardworking taxpayers are working on their taxes, we want them to feel confident that everyone is playing by the same rules,” IRS Commissioner Daniel Werfel said on a call with reporters to preview the announcement. Tax season began Jan. 29.

“These aircraft audits will help ensure high-income groups aren’t flying under the radar with their tax responsibilities,” he said.

There are more than 10,000 corporate jets in the US., according to the IRS, valued at tens of millions of dollars and many can be fully deducted.

The Tax Cuts and Jobs Act, passed during the Trump administration, allowed for 100% bonus depreciation and expensing of private jets — which allowed taxpayers to write off the cost of aircraft purchased and put into service between September 2017 and January 2023.

Werfel said the federal tax collector will use resources from Democrats’ Inflation Reduction Act to more closely examine private jet usage — which has not been closely scrutinized during the past decade as funding fell sharply in the last decade.“Our audit rates have been anemic,” he said on the call. An April 2023 IRS report on tax audit data states that “continued resource constraints have limited the agency’s ability to address high-end noncompliance” stating that in tax year 2018, audit rates for people making more than $10 million were 9.2%, down from 13.6% in 2012. And in the same time period, overall corporate audit rates fell from 1.3% to .6%.

Werfel said audits related to aircraft usage could increase in the future depending on the results of the initial audits and as the IRS continues hiring more examiners.

“To be clear, that doesn’t mean everyone in a high-income category partnership or corporation is evading or avoiding their tax responsibility,” Werfel said. “But it does mean that there’s more work to do for the IRS to make sure people are paying what they owe.”

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
More than 15 million Toshiba laptop adapters recalled due to fire hazards
next post
Lithium Universe Secures Quebec Prime Industrial Land for Lithium Refinery

Related Posts

GameStop stock is at risk: here’s one potential...

December 21, 2024

AMD stock price forecast: set to surge after...

February 27, 2025

S&P 500 Index: Time to sell the SPY...

May 2, 2025

Volvo’s Q3 earnings fall short: stagnant demand raises...

October 18, 2024

US dollar index (DXY) analysis as focus shifts...

September 29, 2024

Is Uber a buy following robotaxi deal with...

September 14, 2024

Analyst: ‘make me CEO, I can turn around...

July 5, 2025

Crude oil awaits fresh catalyst to rise further:...

June 11, 2025

Visa and MasterCard settle long-running antitrust suit over...

March 29, 2024

PBOC broadens monetary toolkit with outright reverse repo

October 28, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025
    • Trump’s 50% tariff on Brazil imports to brew trouble for Starbucks and Dutch Bros

      July 13, 2025
    • US to announce 30% tariff on EU and Mexico says Trump

      July 13, 2025
    • Why India is rushing to build bigger banks and what’s standing in the way

      July 13, 2025
    • Wall Street braces for weakest earnings season since 2023 amid market highs

      July 13, 2025

    Categories

    • Business (3,398)
    • Investing (2,619)
    • Latest News (2,017)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved