NATA and NBAA are asking the Internal Revenue Service (IRS) to clarify federal excise tax (FET) collection responsibilities of charter brokers and operators, saying current regulations remain unclear and are causing confusion. The IRS recently issued its long-awaited final rule that addressed when the air transportation tax applied in situations involving aircraft management fees. During that rulemaking, NATA and NBAA also had raised questions regarding the FET collection responsibilities of charters and brokers. However, the IRS, noting the broad implications of the issue, suggested a separate rulemaking. The associations stressed their willingness to work with the IRS on the issue, calling it critical for their members. "There is currently little guidance to determine whether charter brokers are responsible for collecting FET," they told the IRS in a joint letter.
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