The IRS audit process can be challenging for any business aircraft owner or operator, so NBAA has created resources to help members prepare for audits and understand how the process functions. Developing a record-keeping system that maintains the information commonly requested by IRS auditors is one of the most important steps in preparing for a potential audit. In general, taxpayers have the burden of proving they are entitled to a specific tax deduction or credit, which makes having the necessary records for substantiation very important.
Record-Keeping Rules for Business Aircraft (300 KB, PDF)
This members-only resource reviews the history of IRS substantiation and record-keeping rules, and provides specific best practices regarding the types of records that an aircraft owner or operator should keep. For example, the resource provides details on how to substantiate the business purpose of a flight, which is a common audit topic.
Navigational Guide for Audits (225 KB, PDF)
This members-only resource describes the IRS audit process from start to finish and includes details on appeal options for taxpayers. Starting with the initial contact by the auditor and moving through the information document request process to the audit findings, the guide provides business aircraft owners and operators with resources to manage IRS audits.
International Business Aviation Council Ltd.