California corp.

"TaxSrv" wrote in message
...
Tony Cox wrote:
Each year (as I understand it), the IRS top brass have a
meeting to decide exactly what criteria will be used to
decide who gets audited. This is in addition to the 'base
rate' random auditing. Anything 'unusual' can only increase
your chance of being audited if it is statistically worth
devoting the auditors time to it. Tax fairness be damned;
its the $$$'s they want.

The above description does not remotely describe how IRS annually
manges its enforcement programs. They do not do random audits, nor
does "top brass" decide on minute matters such as private aircraft
usage to be a target. The potential effect of claiming private
aircraft expenses is that they tend to be large, inflating travel
expense deductions relative to size and scope of the business. If
selected for audit, it would be on that basis.

Fred F.

If you can more properly describe the process, please do.
Since I don't believe the depreciation schedules even requires you
to list an aircraft specifically, clearly it can't be used as an
initial criterion. But such travel expenses vs. income can be
easily tested for and used as a trigger, as I said in another post.

As for 'random' audits, from what you say, entities (people
or corporations) are in no danger whatsoever of being
audited if they report earning and expenses according to
industry norms. Somehow, this doesn't ring true.