Federal Taxes

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IRS Priority Guidance Plan

May 20, 2016

Each year the Treasury Department's Office of Tax Policy and the IRS issue a Priority Guidance Plan to identify and prioritize federal tax issues that should be addressed through regulations, revenue rulings and other published guidance. This allows the government to focus resources on guidance projects that are both important for taxpayers and necessary for effective tax administration. While the plan includes priority projects, there is not a specific deadline for completion of each item. It is also possible for items to be included on the Plan for multiple years.

For 2015-2016, the Priority Guidance Plan contains 277 projects that the IRS and Treasury Department will use to allocate resources from July 2015 through June 2016. Two of NBAA's key federal tax issues, guidance on the application of federal excise taxes to aircraft management fees and guidance to address the “leasing company trap,” which unfairly penalizes aircraft owners that lease an aircraft to related parties are on the current Plan.

The Plan for 2016-2017 is currently being developed, and NBAA submitted a request to address a regulatory glitch that effectively penalizes business aircraft owners who conduct charitable flights. Under current Treasury regulations, fixed costs (including depreciation) that are attributable to charitable flights can be treated as non-deductible. This imposes a tax penalty on companies conducting charitable flights, and NBAA believes the result is contrary to the intent behind the law and regulations. Review NBAA's request on charitable flights. Review NBAA's Request on Charitable Flights (180 KB, PDF)

NBAA and its Tax Committee will continue meeting with officials at the Treasury Department and IRS to monitor progress on these three important issues. Updates will be provided to Members as they become available.


NBAA Priority Guidance Request: Charitable Flights

NBAA and NATA Priority Guidance Request: Federal Excise Taxes

NBAA Priority Guidance Request: Leasing Company Trap

2015-2016 IRS/Treasury Priority Guidance Plan Update

For more information regarding these issues contact NBAA's Scott O'Brien at (202) 783-9451 or sobrien@nbaa.org.