Business mogul Warren Buffett’s private-aircraft company, NetJets Inc., is suing the Internal Revenue Service (IRS) for allegedly improperly applying ticket taxes and penalties totaling $642.7 million against the company.
Columbus, Ohio-based NetJets, which provides aircraft management services to individuals and companies that own airplanes, filed the lawsuit against the IRS in federal court on Monday. The company claims that beginning in 2003, the government wrongly applied a ticket tax that is supposed to apply to passengers who use commercial or charter planes owned by others rather than private aircraft owners.
NetJets alleges in its complaint that the government never explained the fees on which it would place taxes, which has left the company and its subsidiaries “stuck with a $642 million-plus bill for past taxes the IRS never indicated they were required to collect and for which they are not even the actual taxpayers.”
NetJets seeks back payment of the taxes with interest. Read the Washington Post for more about the aircraft company’s lawsuit.