Digging into the IRS's Scrutiny of Corporate Jet Usage The IRS announced an initiative to scrutinize the use of corporate jets. Corporate jet expenses must be correctly allocated between business and personal use. Personal use may limit a company's ability to deduct costs related to the jet. Personal use can include (1) non-business usage, (2) commuting from home to work, or (3) family or guest jet usage. And personal use can also lead to income inclusion for the employee – meaning those receiving personal flights should generally receive the cost of that flight in their wages. Corporate jet usage is subject to the strict substantiation requirements of section 274 of the Internal Revenue Code. Section 274 sets a very high standard for the types of records that must be kept for certain types of business expenses. The section 274 requirements can be fatal for taxpayers with inadequate record-keeping. #kimandrosadollp #taxlawyer #tax #IRS #IRSaudit #corporatejet