Thursday, April 12, 2012

Internal Revenue Service, private jet operators agree to talks over tax

COLUMBUS, Ohio (AP) - Groups of private business jet operators and the Internal Revenue Service have agreed to sit down for talks over a $643 million lawsuit that alleges the government wrongly applied a ticket tax meant for commercial passengers only.

A lawsuit in U.S. District Court in Columbus by four Ohio-based subsidiaries of Columbus-based NetJets Inc. says the ticket tax was not intended to apply to private aircraft owners and the fees they pay to maintain and operate their planes.

The companies provide aircraft management services to people and companies that own planes.

NetJets and the IRS filed a joint motion in federal court Columbus Thursday asking the case be delayed while they conduct private mediation to try to reach a resolution.

Cleveland-based Flight Options is also participating in the talks.

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