IRS Provides Guidance with FAQs on Federal Excise Tax Suspension Reporting
The Internal Revenue Service (IRS) has released a series of frequently asked questions (FAQs) regarding the federal excise tax (FET) holiday for commercial aviation operations created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The FAQs provide interim guidance on tax reporting issues raised by National Business Aviation Association (NBAA) regarding the tax holiday on air transportation excise tax and fuel tax under Section 4007 of the CARES Act. The tax holiday runs through Dec. 31, 2020. (See Holland & Knight's previous alert, "NBAA Article, Webinar Address CARES Act and Its Impact on Business Aviation," May 14, 2020).
Holland & Knight Partner John Hoover, chair of the NBAA's tax committee, wrote an article for the association that helps explain the recent IRS guidance.
The NBAA also hosted a webinar on May 15, 2020, to address members' questions and concerns on the FET holiday. John Hoover was a panelist for the program, COVID-19 & The Federal Excise Tax Suspension: Does it Apply to Your Business?
For further information or questions on the IRS guidance or the FET tax holiday, contact the author.
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