{"id":17424,"date":"2021-01-19T12:19:41","date_gmt":"2021-01-19T12:19:41","guid":{"rendered":"https:\/\/saj.pachecostudios.com?p=17424"},"modified":"2021-01-19T12:19:42","modified_gmt":"2021-01-19T12:19:42","slug":"irs-aircraft-management-exemption-rules-now-in-effect","status":"publish","type":"post","link":"https:\/\/stateaviationjournal.com\/index.php\/national-news\/irs-aircraft-management-exemption-rules-now-in-effect\/%20","title":{"rendered":"IRS Aircraft Management Exemption Rules Now in Effect"},"content":{"rendered":"\n<p>The Internal Revenue Service (IRS) <a href=\"https:\/\/public-inspection.federalregister.gov\/2021-00706.pdf\">regulations regarding exemptions<\/a> from excise taxes for managed aircraft announced last week are now in effect, following a multi-year effort by the National Air Transportation Association (NATA) and other industry stakeholders to ensure aircraft management services were not considered taxable air transportation. <\/p>\n\n\n\n<p>\u201cPublication of these regulations provides needed clarity\nand is a critical step to ensure our members can continue to offer management\nservices to aircraft owners without unintentionally triggering commercial taxes\nfor those owners,\u201d stated NATA Senior Vice President Ryan Waguespack.<\/p>\n\n\n\n<p>Beginning in 2013, guidance from a controversial IRS\nanalysis memo caused NATA members providing aircraft management services to\nface enormous economic jeopardy as the IRS sought to collect, in some cases\nretroactively, excise taxes on amounts aircraft owners paid for management\nservices.<\/p>\n\n\n\n<p>Following the memo\u2019s release, NATA joined with the National\nBusiness Aviation Association to request the placement of the aircraft\nmanagement exemption on the IRS Priority Guidance List. The IRS agreed the\nissue was significant enough to warrant placement on the list.<\/p>\n\n\n\n<p>NATA\u2019s efforts ultimately led to language in the 2017 Tax\nCut and Jobs Act specifying that commercial excise taxes do not apply to an\naircraft owner\u2019s management fees or services, prompting a need for the IRS to\nupdate regulations to reflect the new law.&nbsp;\nThe proposed rules published in September 2020. NATA and NBAA, together\nwith numerous association members, crafted detailed comments in response.<\/p>\n\n\n\n<p>\u201cReading the final rules makes it is clear that the IRS not\nonly reviewed our comments, but the staff was also persuaded by our arguments\nand included many of our proposed changes in the final version,\u201d added NATA\nPresident and CEO Timothy Obitts. \u201cDespite challenges created by the pandemic,\nthe IRS remained focused on bringing this rulemaking to a close. The new\nregulations offer our industry necessary clarity to move forward with\nconfidence.\u201d<\/p>\n\n\n\n<p>Due to the limited scope of this rulemaking and the\npotential to impact other aspects of the industry (such as the airlines), the\nIRS was unable to fully resolve NATA\u2019s concerns regarding verification of the\nsource of payments and tax collection and remission roles when a broker is\ninvolved in a charter. However, the IRS agreed these are important issues\nworthy of additional collaboration though a new guidance project.<\/p>\n\n\n\n<p>\u201cWe are exceptionally proud of the strong working\nrelationship we have established with the Department of Treasury and IRS\nthroughout this project. Many of the same staff have worked this issue since it\ncame to a head in 2013. We look forward to continued engagement to resolve\nthese remaining questions,\u201d concluded Waguespack.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Service (IRS) regulations regarding exemptions from excise taxes for managed aircraft announced last week are now in effect, following a multi-year effort by the National Air Transportation Association (NATA) and other industry stakeholders to ensure aircraft management services were not considered taxable air transportation. \u201cPublication of these regulations provides needed clarity and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[115],"tags":[],"class_list":["post-17424","post","type-post","status-publish","format-standard","hentry","category-national-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/17424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/comments?post=17424"}],"version-history":[{"count":1,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/17424\/revisions"}],"predecessor-version":[{"id":17425,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/posts\/17424\/revisions\/17425"}],"wp:attachment":[{"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/media?parent=17424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/categories?post=17424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateaviationjournal.com\/index.php\/wp-json\/wp\/v2\/tags?post=17424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}