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Buffett’s NetJets Countersued by U.S. for Unpaid Taxes

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NetJets Inc., the private-plane company owned by Warren Buffett’s Berkshire Hathaway Inc. (BRK/A), was countersued by the U.S. over $366 million in taxes and penalties. Claiming the federal Internal Revenue Service wrongfully assessed a so-called ticket tax -- an excise tax on payments made in exchange for air transportation -- to private aircraft owners maintaining their own planes, the Columbus, Ohio-based company demanded refunds and abatements. (www.businessweek.com) 更多...

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racerman
How did this possibly happen? Buffett is constantly saying he doesn't pay enough taxes, and his friend Obama should raise the rates.I guess actions speak louder than words. Kinda makes you wonder how Buffett and obama are such good buddies ,as Obama constantly trashes the "fat cats and their corporate jets" as he travels the world in a private jet at taxpayer expense.
DashTrash
DashTrash 4
Unless the IRS can levy that excise tax every time somoene flies a non-fractionally owned jet, they can't tax someone for flying in their fractionally owned jet. Government overreach...
tartarus12
I think the point of the story is pointing out the hypocracy of Warren Buffett. He's the guy who thinks he should be paying more taxes yet dodges them at every turn.
DashTrash
DashTrash 2
Then the article is uninformed. There is very little oversight from Buffett with Berkshire companies.

James is exactly right. The only gray area here could be with Marquis flights.
partassoc
Obama will make an executive decision and take care of his friend and supporter Warren Buffett. I bet the liberal mainstream press doesn't report this.
WALLACE24
WALLACE24 1
You are probably right there. I still wouldn't be surprised if the tax gets dumped in the aircraft owners hands. I don't have a clue what all is in the fractional ownership contract, but I bet their is a catch all line about taxes and that the owners are responsible.
WALLACE24
WALLACE24 3
If IRS prevails, watch out corporate flight departments and maybe GA as a whole.
WALLACE24
WALLACE24 5
If you own the plane you don't need no stinking ticket.
Wingscrubber
This is just the beginning. User fees here we come :( It's a worrying time to be employed at a GA manufacturer hoping to sell airplanes when your customers are being taxed into oblivion.
rick737
Somewhere in the headquarters of the IRS headquarters is the carved in stone motto: If you got it, we want it.
linbb
linbb 2
Real deal is they know the tax they are trying to collect isnt right so to get something without a court fight they cut it in half what a deal. They do it every day just to extort money from the taxpayer and if they dont pay they go after anything the outfit owns. Others are called crooks, they are called the IRS.
preacher1
preacher1 2
Of significance here is the original filing in November BY NetJets. In most cases,
October 15th is the deadline for any extensions, personal & business. It seems they have paid some if not all of these assessments and are contesting it. Naturally that will aggravate the IRS and they will retaliate as they have done here. Sounds like at some point they quit paying what the felt was wrong and as you say, they will extort it one way or other because our government is never wrong and you don't question them. Just pay and go on. They have either levied this tax on others and it has been paid, or they singled out NetJet for whatever reason and this is where it's at.It will be interesting.
DashTrash
DashTrash 1
I don't think Netjets has ever collected this tax or paid any assessments. The IRS's complaint popped up all of a sudden. I just saw something one of the NJA pilot message boards that led me to believe this was all over, but it appears I was wrong.

I vaguely remember hearing something about NJA collecting an FET either when the share is sold to the owner or per hourly occupied. It's been a while since I heard it, and wherever I wrote down that info has long since been disposed of.
WALLACE24
WALLACE24 1
Netjets may have a lot of clout on their side if their contracts have a clause whereby they can ultimately pass this on to the owners.
rad2
The article is a bit thin on specifics. Is the assessment part of the tax code or is this a case where the IRS in interpreting the code. There is a difference. If it is part of the code, Congress is the problem or solution. Interpretation is for the courts. Either way, or who is responsible, cost of fractional owned transportation is going up. Now does that mean that those customers will be in line at the Airline counters?
DashTrash
DashTrash 1
I doubt it. Most of the owners I flew wouldn't go back to the airlines. Many still use both fractional and airline, but the preference was always fractional.

I believe all this will get ironed out in the short term.
WALLACE24
WALLACE24 1
Warren brags that he don't pay enough taxes. The IRS listened. Thanks Warren!

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