Flight Tax Systems
Aviation Tax Software
info@flighttaxsystems.com 954.763.9363

IRS SIFL Reporting

Reporting personal use of company aircraft under SIFL is the only reporting method that satisfies the Internal Revenue Service (IRS), the Federal Aviation Administration (FAA) and the Security and Exchange Commission (SEC) reporting requirements.

The FAA limits the amounts business aircraft owners are allowed to reimburse their companies for the costs incurred using the aircraft for personal flights. The IRS has determined that the personal use of company aircraft is a taxable benefit to the employee. Both the IRS and the FAA permit the taxable benefits be "imputed" to the employee, and the IRS has issued detailed procedures on how the taxable benefit is to be imputed. These procedures employ what are referred to as the Standard Industrial Fare Levels (SIFL).

Flight Tax Systems (FTS) is a web-based software application developed by Aviation CPAs to assist owners, operators and tax professionals with tracking the tax-related activities of their aircraft. FTS is designed to assist with required SIFL documentation and reporting, and includes the following features:

  • Point to point reporting
  • 50% seating capacity rule
  • Single or dual pilot configuration
  • Spousal reporting
  • International SIFL rules observed
  • Recognizes children under 2 years rule
  • Calendar year reporting
  • Fiscal year reporting
  • Bona fide security reporting

The flight entry screen is organized for rapid and simple entry of flight information and allows the user to select aircraft, enter dates, airport-pairs, passengers, flight classification, and purpose of flight. There are more than 30,000 world-wide airports in the database. The flight entry screen tracks flights, resembles a pilot's log book and is sortable in ascending or descending order. Employee and passenger data separated as a Business, Entertainment, Non-Business Non-Entertainment, Business Entertainment or Commuting classification is designated for each passenger. A control person need not be on board the flight in order to compute a SIFL charge. FTS supports flight reimbursement, such as Timesharing and Schwab Reinterpretation.