the government cannot retroactively impose secondary liability on a deputy tax collector for the deputy’s failure to collect taxes.” Slip op. 16. In fact, the court in NetJets analyzes several IRS revenue rulings, including the 1958 ruling, and held that such rulings do not provide “precise and not speculative” notice to EJM of its duty to collect. EJM provides aircraft management services to owners or lessors of whole aircraft. EJM is a sis- ter company of NetJets Aviation Inc., which is the world’s largest provider of fractional management services. The case is not yet final and has been appealed by the Department of Justice, Tax Division. As part of ongo- ing audits of aircraft management companies, some IRS employees have represented that, if the deci- sion for EJM is affirmed on appeal, the IRS will concede the issue in all other audits. However, the appeal could drag-on for several years. It is the opinion of the author that, absent extenuating circumstances, courts will use the duty of clarity to protect aircraft management companies, who are currently under audit, from FET assessments for tax periods before the second quarter of 2012. Conclusion The promise of the IRS to pro- vide clarifying regulations regard- ing whether aircraft management fees are subject to the 7.5% FET for taxable transportation is long over- due. As a general rule, the IRS has the good-intention to refrain from creating tax policy through litiga- tion. However, for this issue, where there exists a strong argument that the IRS has issued inconsistent Aviation Business Journal | 2nd Quarter 2017 Nation’s Leader in Professional Pilot Training 300+ Training Aircraft Fly with ATP and gain access to more aircraft, locations, and job placements than any fl ight school, academy, or aviation university can offer. Placements 300+ Yearly 40 Locations Nationwide Airline Career Pilot Program | ATP CTP | Aircraft Dispatcher | Type Ratings ATPFlightSchool.com Call or text (904) 595-7950 quarter-page-creative.indd 1 5/2/17 10:11 AM 15 guidance and where the duty of clar- ity protects deputy collectors from secondary liability, the resolution of this issue via litigation appears to be a more viable route for affected aircraft management companies. Anthony Gasaway is a frequent con- tributor and speaker within the business aviation industry. Tony is the head of his own law firm with offices in Oklahoma City, Oklahoma; Durango, Colorado; and St. Louis, Missouri. His nationwide practice focuses on tax issues that affect the business aviation community. Tony has represented clients in disputes with the Internal Revenue Service at all levels of review, including representation in audits and administrative appeals and before the U.S. Tax Court, Court of Federal Claims, Federal District Courts, Courts of Appeal, and the U.S. Supreme Court. He also advises clients with respect to tax aspects of own- ing and leasing aircraft and complex matters of tax-driven financing. He is knowledgeable with respect to integra- tion of Federal Aviation Regulations, Department of Transportation Regulations, federal income tax issues, state sales and property tax issues, interstate liability issues, and aircraft economic issues. Tony entered private law practice in 2001 after working as a trial attorney for the Internal Revenue Service for over 13 years where he litigated complex-tax cases in the Large Case division of the IRS Office of Chief Counsel. Contact Gasaway at 970/769- 5379 or [email protected]