Increased IRS Focus on Business Aircraft Usage

April 1, 2025 - 12:15

Businesses that own, lease, or charter aircraft should prepare for heightened scrutiny from the IRS regarding their compliance with tax regulations. The agency is intensifying its examination of how companies utilize aircraft for business purposes, aiming to ensure that they adhere to tax provisions designed to govern such use.

This increased oversight comes as part of a broader initiative to ensure that businesses are accurately reporting aircraft-related expenses and properly substantiating their claims for deductions. Companies may face challenges in demonstrating compliance, particularly if they cannot provide adequate documentation of the business purposes for which the aircraft are used.

In response to this development, businesses are encouraged to conduct thorough reviews of their aircraft usage policies and ensure that they maintain detailed records. This includes flight logs, purpose of travel, and any related expenses incurred during business flights. By taking proactive measures, companies can better position themselves to withstand potential audits and avoid penalties associated with non-compliance.