The IRS announced that one focus of its efforts to improve tax compliance is to audit taxpayers who personally use business aircraft. IRS Commissioner Danny Werfel said this scrutiny will help provide confidence that everyone is “doing the right thing by filing and paying their taxes.” To that end, the IRS is increasing audits of large businesses and high-income individuals. With expanded resources from the Inflation Reduction Act, Werfel said aircraft audits “will help ensure high-income groups aren’t flying under the radar with their tax responsibilities.” The cost of purchasing and using corporate planes can be deducted but personal trips, including for vacation travel, aren’t deductible.
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