Drafting Business Aircraft Usage Policies: Personal Use, Carriage of Political Candidates, SEC and IRS Reporting

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Commercial Law
- event Date
Tuesday, August 27, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will offer guidance for drafting practical corporate aircraft usage policies, including policies related to personal use, carriage of political candidates, SEC reporting, and related issues. The program will also address the aspects of a use policy that should be included to address employee pilot provided aircraft and charter aircraft.
Faculty

Ms. McGee works with businesses and high net worth individuals on acquiring and structuring ownership of corporate jets. She is adept at supporting clients in finding the balance between business interests, tax goals, and regulatory compliance. Ms. McGee has extensive experience in aircraft acquisitions, finance, leasing, management, charter operations, insurance, regulatory matters, and federal and state tax matters. She has a particularly and uniquely high level of regulatory experience, making her an excellent attorney to support both domestic and international clients as they explore aircraft ownership options and move through the acquisition process. Ms. McGee is highly skilled in achieving regulatory compliance, mitigating risk and liability concerns, and setting up and achieving business and tax goals. She is affiliated with the Women in Corporate Aviation organization as well as the National Business of Aviation Association. Ms. McGee has been honored to serve on multiple industry committees, including the Part 125/135 Aviation Rulemaking Committee, and the NBAA Regulatory Issues Advisory Group. She has also written numerous published articles on business aviation issues and is a frequent speaker at aviation conferences and events.

Ms. Bivins received her LL.M. in taxation from the University of Florida Levin College of Law, where she was a Graduate Tax Scholar. She received her J.D. from Florida State University College of Law in 2003 and was a member of the Trial Advocacy Team. Ms. Bivins has been involved in all aspects of state and federal tax examinations, including representing clients during the examination process; negotiating with IRS and state revenue personnel to resolve tax assessments; and representing clients before the U.S. Tax Court and state courts and administrative tribunals.

Mr. Hernandez is a Shareholder at Vedder Price and a member of the firm’s Global Transportation Finance team. He was recognized in Private Aircraft (Global-wide) in Chambers High Net Worth as one the world’s leading high net worth business aircraft advisers and was ranked "Band 2" 2016 through 2021 and ranked "Band 1" from 2022-2024. In 2015, 2017 and 2018, Vedder Price was named Airline Economics Aviation 100 Law Firm of the Year. Mr. Hernandez frequently advises clients on new and used aircraft purchase/sale agreements, fractional program documents, aircraft management agreements, aircraft registration, aircraft use policies, cross-border transactions, personal use of company aircraft and aircraft use agreements to ensure compliance with FAA, SEC and IRS regulations. He represents a wide variety of clients, including Fortune 500 companies, high net worth individuals, corporate flight departments, charter operators, some of the largest aerospace manufacturers and suppliers, airlines, defense contractors and airports. Mr. Hernandez also has considerable experience assisting clients with aircraft operational issues, financing, leasing and regulatory matters, complex government investigations, aircraft and part certifications, and FAA, DOT, BIS/OFAC (export controls), IRS and SEC enforcement matters.
Description
Companies that own or operate business aviation assets should have use policies that allow for needed flexibility but also ensure the aircraft is not misused or abused. Creating a policy designed for practical and consistent implementation is essential to prepare for increased IRS scrutiny of business aircraft use by large businesses and high net worth individuals, and to ensure FAA compliance. Good recordkeeping is the key.
Many businesses allow company aircraft to be used for personal purposes, which is part of executive compensation, but others prohibit personal use for a variety of reasons. Well-crafted policies will offer clear direction regarding the different ways in which the aircraft may be used, such as business, personal, political, or charitable purposes, and describe exactly who can use the aircraft for which purposes.
Even companies that do not own or operate aircraft may want to consider having an aircraft use policy in place. Many businesses may gain access to use aircraft from charter companies, or as a result of an employee that is a pilot seeking to use an aircraft for business purposes in exchange for reimbursement of expenses. The panel will discuss the best practices and pitfalls regarding these types of scenarios.
Listen as this experienced panel of aviation lawyers discusses drafting corporate aircraft usage policies that anticipate increased IRS scrutiny of business aircraft use by large businesses.
Outline
- Purpose and intent of a policy
- Essential topics to be covered
- Enforcement of the policies
- Company
- FAA
- SEC
- IRS
- Others
Benefits
The panel will discuss these and other issues:
- What are the essential topics that an aircraft-use policy should address?
- What are some strategies for effective and practical recordkeeping?
- How do FAA, SEC, and IRS rules on personal, political, and business uses differ?
- What are the pros and cons of allowing personal use of business aircraft?
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