Advocacy Efforts Achieve Breakthrough On Federal Excise Tax Issue | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 08.03.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

Airborne Hi-Def On YouTube

Airborne 08.03.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Sat, May 18, 2013

Advocacy Efforts Achieve Breakthrough On Federal Excise Tax Issue

Audit Assessments To Be Suspended While Guidance Is Developed

The Internal Revenue Service (IRS) announced Thursday that it was suspending tax assessments that could be applied to aircraft management companies during federal excise tax (FET) audits, giving the agency time to work with industry on additional guidance. The move was welcomed by advocacy groups like the NBAA and NATA, which had lobbied the agency for the guidelines.

"We applaud this decision by the IRS as it addresses an issue that has caused unprecedented concern about potential retroactive and future tax liabilities throughout the business aviation community," said NBAA President and CEO Ed Bolen. "While the IRS will complete open audits, management companies can be secure in the fact that while additional guidance is developed, they will not face potentially crippling tax assessments as a result of those audits."
 
Last week, NBAA along with the National Air Transportation Association (NATA) met with senior leaders of the IRS Small Business/Self Employed Division to make the case for suspending FET audits dealing with aircraft management fees while the industry works with the IRS on developing additional guidance.
 
During the meeting, NBAA explained that previous guidance on FET applicable to management companies is unclear, and Members face uncertainty regarding their potential retroactive and future tax liability. Since the release of an audit technique guide in 2008 and a chief counsel advice memorandum in 2012, the IRS has become more aggressive in audits of aircraft management companies and charter operators. In particular, auditors were assessing FET on a wide variety of non-commercial flight operations, including flights by aircraft owners under Part 91 of the Federal Aviation Regulations in situations where services are provided by a management company.
 
"Since 2008, NBAA has been diligently working with senior officials at the IRS to address significant industry concerns about the applicability of FET to management companies," said Bolen. "Today's announcement that IRS will suspend any potential assessments on these audits until the work to develop formal guidance is complete frees hundreds of businesses from significant financial uncertainty."

"During this meeting, we strongly advocated our case and IRS officials did an outstanding job of tackling our concerns. They asked that we give them a week to review and they came back to us today with a decision to complete open audits but suspend any potential assessments until new guidance on the application of the FETs is developed," said NATA President and CEO Thomas L. Hendricks.

"We have come a long way with the IRS on this and we effectively reversed their views on how the industry functions and what the rules should be. I am very appreciative of the dialogue and professionalism these IRS officials displayed during this process. After sitting down with them face to face, I believe they have a better understanding of our industry. We have more to do and we will continue to work with the Service in a constructive and professional manner," concluded Hendricks.
 
Both organizations will continue its work with IRS and Treasury Department officials to develop clear and precise guidance as to the applicability of FET to aircraft management arrangements. The additional guidance is expected to be issued in the coming months.
 
"We sincerely appreciate the willingness of IRS to meet with NBAA and NATA on this issue and look forward to continuing our constructive dialogue in the coming months," Bolen said.

FMI: www.irs.gov, www.nbaa.org, www.nata.aero

Advertisement

More News

Airborne 08.03.15: MH370 Evidence Mounts, NIMBYs Must Pay, R66 Police Helicopter

Also: 'New' Wright 'B' Flyer, HD Footage From Space, AMA Museum, NAAA UAV Safety, Waukegan Cancels, Sun Country Pilots, NASA Mars Orbiter The aircraft debris found on the coast of >[...]

Airborne 08.03.15: MH370 Evidence Mounts, NIMBYs Must Pay, R66 Police Helicopter

Also: 'New' Wright 'B' Flyer, HD Footage From Space, AMA Museum, NAAA UAV Safety, Waukegan Cancels, Sun Country Pilots, NASA Mars Orbiter The aircraft debris found on the coast of >[...]

A Whole Lot of OSH15 Awesome! 2015 EAA/ANN AirVenture Innovation Preview!

Get The Inside Details On THE Most Exciting NEW OSH15 Innovations And Product Announcements... in High-Def Aero-TV Video The staff of the Experimental Aircraft Association and the >[...]

Annual Oshkosh 2015 'Best/Worst Of' Award Selection Invites YOUR Participation!

YOU Can Contribute To The Annual List Compiled By The Staff and Readership of the ANN and Aero-TV! E-I-C Note: We're going to start naming names and dropping details in just a few >[...]

ANN's Daily Aero-Linx (08.04.15)

SATOP - Space Alliance Technology Outreach Program The Space Alliance Technology Outreach Program (SATOP) is a cooperative program between the states of Florida, New Mexico, New Yo>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC