As we discussed in our article "IRS Income Tax Audits are
Increasing: What Should You Do When You Receive an Audit
Notice?" published in last month's edition of World Aircraft
Sales Magazine, negotiating your way through a federal
income tax audit can be daunting and difficult.
Similarly, state sales and use tax audits are fraught with
many potentially complex tax compliance pitfalls. If you are
unfortunate enough to receive a notice or other inquiry from
a state taxing authority regarding potential liability for state sales or use tax on your purchase or use of an aircraft, you must tread carefully through the "minefield" of issues surrounding the audit.
This article will highlight several of the most important issues relating to sales and use tax audits and provide some
practical advice for aircraft owners and/or operators with
respect to such audits. By way of general background, the
purchase or use of business aircraft is typically treated as a sale or use of tangible personal property that is subject to state sales or use tax unless a state exemption or similar limitation applies.
See full article for more information.
Please see full publication below for more information.