IRS Oversight of Nonprofits’ Jet Use Deemed Weak by Watchdog

The IRS faces challenges in ensuring that tax-exempt organizations’ use of private jets complies with the tax code, an agency’s watchdog found.

The agency doesn’t receive specific data about private plane usage on tax returns, and doesn’t have a way in its systems to track audits of nonprofits related to private plane issues, the Treasury Inspector General for Tax Administration said in a report issued Feb. 26 and released Monday.

The IRS’s Tax Exempt and Government Entities division is developing a strategy to improve its oversight in the area, the report said.

Nonprofit organizations are allowed to take private ...