[Travel-Link] Airline Taxes during FAA shutdown

[HAY Tim * SSD SPO]

I have been receiving several emails regarding the refund of airline
ticket taxes in regards to the recent FAA partial shutdown.  Below is
the latest from the IRS (as of today).     The IRS stating the people
who traveled between July 23, 2011 and August 8, 2011 are not entitled
to any refunds.  Some airlines (US Airways and Delta) indicated that
they will refund travelers for any taxes collected dependent upon the
IRS ruling.  With the IRS ruling that travelers are not entitled to any
refunds, it will be up to the airline to decide whether or not to
process refunds.  Neither airline has commented yet on this ruling.

 

Alaska, Frontier and Spirit Airlines did not raise fares to match the
taxes during the FAA partial shutdown.      

 

It is unlikely that none of the other airlines will offer any refunds.

 

Reinstatement of Airline Ticket Taxes

 

IRS Statement on Airline Ticket Taxes

Aug. 5, 2011

Today's Congressional action extending the Federal Aviation
Administration authorization reinstates retroactively the airline ticket
taxes for passengers who traveled during the lapse of the FAA's
authorization. As a result of the bill Congress passed today, passengers
who purchased tickets prior to July 23 and traveled between July 23 and
the date of enactment of today's legislation are not entitled to a
refund of the airline ticket excise tax. Additionally, the IRS intends
to provide relief for passengers and airlines with respect to ticket
taxes that were not paid or collected because of the lapse.

The IRS intends to provide guidance to the airlines which will allow for
an orderly restart of the collection of ticket taxes. Airlines will have
from the time of enactment of the legislation through 12:01 a.m. on
Monday, Aug. 8, to resume collection of the ticket taxes.

The IRS is currently reviewing other effects of the legislation and will
issue future guidance.

 

 

 

Tim A. Hay, CPPB, CGTP, OPAC, OPBC

Lead State Procurement Analyst

DAS State Procurement Office

1225 Ferry St SE U140

Salem, OR 97301-4285

 

Ph. 503-378-4650

Fax. 503-373-1626

tim.hay at state.or.us <mailto:tim.hay at state.or.us> 

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