New Check Box on Form 4562 is an IRS Audit Trap
By Cody Heimerdinger, CPA
Director, Keystone Tax Solutions Group
Business owners are spending a lot of time right now thinking about talent, how to find it, keep it, and adapt as AI reshapes roles and expectations.
But while attention is focused on the future of the workforce, the IRS is quietly focusing on something else: how businesses are using their assets, especially high-profile ones like aircraft. And this year, that focus just got more visible.
The IRS Just Added a New “Tell Me More” Checkbox
Form 4562 (the depreciation form most businesses already file) now includes a specific disclosure related to business aircraft: Line 24c. It is not just a form update. It is a signal.
When the IRS adds a checkbox tied to a niche area, it is usually because they already see issues, and want a faster way to identify who to examine.
Why Aircraft Use Is Getting Scrutiny
Business aircraft have always lived in a gray area where tax strategy meets lifestyle. The IRS is focusing on a simple question:
Does the tax treatment match the actual use?
Where things go sideways:
- Personal flights being treated as business use.
- Incomplete or inconsistent flight logs
- Misapplication of depreciation rules
- Related-party structures that do not hold up under review.
And here is the kicker, this is not just about the business deduction. Improper treatment can also create taxable income for the individual using the aircraft.
The Technical Trap Most People Miss
One of the biggest problem areas is how qualified business use (QBU) is calculated. It is not just: “Was the plane used more than 50% for business?”
It is calculated per passenger, per flight leg.
That means:
- One executive on a personal trip can taint part of the flight.
- Mixed-use flights require allocation.
- Owners and related parties get additional scrutiny.
Translation: what feels like a “mostly business” aircraft can easily fall short under IRS methodology.
Documentation Is the Difference Between Strategy and Exposure
In aircraft audits, the IRS is not guessing, they are reconciling.
They are looking for:
- Flight logs tied to specific business purposes
- Passenger lists and relationships
- Consistent treatment of personal use
- Support for depreciation positions
If the records do not tell a clear story, the IRS will write their own.
What This Means for Business Owners
If you own, lease, or regularly use an aircraft in your business, this is not a theoretical issue anymore.
That new checkbox is likely functioning as a screening tool, flagging returns where:
- Depreciation is being claimed.
- Aircraft use is complex.
- There’s higher audit potential.
Practical Next Steps
This is one of those areas where small fixes now prevent large problems later:
- Revisit how flights are being classified.
- Confirm your QBU calculations hold up under IRS rules.
- Review of how personal use is being treated (and reported)
- Make sure documentation is complete and consistent.
- Take a fresh look at ownership or leasing structures.
Bottom Line
As businesses adapt to changes in talent and technology, it is easy to overlook areas that have been “working fine” for years. But when the IRS adds visibility, like they just did with aircraft reporting, it is worth paying attention. Because sometimes, the biggest audit trigger is not a number. It is a checkbox.