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IRS Says No to Airline Ticket Tax RefundAugust 8, 2011 By: George Dooley Travel Agent
The Internal Revenue Service (IRS) issued a statement late Friday, August 5 after Congressional action that extended the Federal Aviation Administration (FAA) authorization that had lapsed.
The authorization reinstated retroactively the airline ticket taxes for passengers who traveled during the lapse of the FAA's authorization, IRS said.
"As a result of the bill Congress passed (August 5), 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,"the IRS said. "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," IRS continued. "The IRS is currently reviewing other effects of the legislation and will issue future guidance."