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FAA Tax Refunds to Come For Tickets Purchased Before July 23

by on August 3, 2011 · 13 comments

in Travel Industry

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It looks like the current FAA deauthorization will last until after Labor Day, so if you purchased a ticket for US travel before July 22 for travel on or after July 22, 2011, you may be entitled for a refund. It’s not clear how the refund will work, so I’d recommend waiting while the details are figured out, but the refunds may be up to 10% of the total ticket price, so stay tuned.

Info from Delta.com

“AdvisoryTaxes Paid for Travel during FAA Shutdown
Delta announced Aug 1 it will process tax refunds for customers traveling during the suspension of non-essential services of the Federal Aviation Administration.
The Internal Revenue Service (IRS) has advised that travelers who paid for tickets on or before July 22, 2011, for travel beginning on or after July 23 and prior to the reinstatement of FAA funding, may be entitled to a refund of those taxes.
Delta is awaiting guidelines from the IRS on the process of providing refunds and will process refunds directly for customers once an agreement is reached with the IRS on the procedure for doing so. Information on how to apply for a refund will be posted to delta.com when it is available.
Funding for the FAA expired on July 23. At that time, Delta stopped collecting several taxes imposed on ticket sales, including a 7.5 percent tax on the base ticket price, a $3.70 segment tax and facilities taxes on international travel and travel to and from Alaska and Hawaii.
Last Updated: August 1, 2011, 4:30pm EDT (-5 GMT)”

U.S. law authorizing the following federal air transportation excise taxes expired at midnight on July 22, 2011: the 7.5 percent tax on the base ticket price; the domestic segment tax of $3.70 per person per segment (a single takeoff and single landing); the international travel facilities tax of $16.30 per person for flights that begin or end in the U.S., or $8.20 per person for a flight that begins or ends in Alaska or Hawaii; and the 6.25 percent tax on the amount paid for transporting property by air.

Unless the federal government reinstates these taxes, United Airlines and Continental Airlines are not collecting them for air transportation purchased after July 22, 2011. Customers who paid these taxes on or before July 22, 2011, for travel beginning after July 22, 2011, may be entitled to a tax refund. Please contact the U.S. Internal Revenue Service (IRS) directly for additional information or if you want to request a refund of these taxes.

Info from AA.com

The U.S. excise tax on airline tickets for domestic and certain international air transportation expires at midnight, July 22, 2011. Until Congress provides otherwise, tickets sold by American Airlines after July 22, 2011, will not include these U.S. ticket taxes. Passengers who paid U.S. ticket taxes on or before July 22, 2011, for travel beginning after July 22, 2011, may be entitled to a tax refund. If travel commenced on or before July 22, 2011, U.S. ticket taxes are not eligible for refund even if a portion of the travel occurs after July 22.

We anticipate further guidance from the IRS. At this time, passengers may direct their refund requests to the IRS.

 

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  • Albert

    Glad you’re keeping track of this! Thanks!

  • Megan

    This is great news! Thanks for keeping us updated. I hope new details come out soon.

  • Kevin

    Awesome, sounds like I may get a healthy chunk back from my upcoming Italy trip that I booked a few months ago.

  • Anonymous

    Do you think we can get refunds on AmEx point transfers too? I transferee a lot of MR points to delta for a flight in August and had to pay for the AmEx transfer…

  • Sally

    2 questions: 1. if you got your tickets with a combination of points and purchased points, would you be eligible for the refund? and 2. Does a ‘trip’ mean a single direction or round trip? i.e., trip commenced 7/18 and return flight was 7/29. I assume the return flight would qualify for the refund?

  • Heather ✈

    YIPPEE!

  • Sdhuper

    Do you know if BA taxes for flights originating from US will be reimbursed?

  • swheel27

    Unfortunately here’s the latest from Delta. And Alaska has the same message:

    Advisory: Taxes Paid for Travel during FAA Shutdown

    Delta previously announced plans to process tax refunds for eligible customers traveling during the suspension of non-essential services of the Federal Aviation Administration, pending final guidance from the Internal Revenue Service.

    The IRS guidance issued today advised that, “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.”

    Last Updated: August 5, 2011, 2pm EDT (-5 GMT)

  • Judy

    what do you make of this, from Delta.com?
    Advisory: Taxes Paid for Travel during FAA Shutdown

    Delta previously announced plans to process tax refunds for eligible customers traveling during the suspension of non-essential services of the Federal Aviation Administration, pending final guidance from the Internal Revenue Service.

    The IRS guidance issued today advised that, “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.”

    Last Updated: August 5, 2011, 2pm EDT (-5 GMT)

  • Edith

    Why focusing on Delta..I have three future trips pending with Jet Blue..one is domestic and two are to Mexico through March 2012

  • Judy

    Delta was the one I happened to check. But if the IRS is reneging, I bet all the airlines are reneging.

  • Judy

    sorry, I missed this, you beat me to it! Bastards.

  • Rkwittman

    I purchased an international ticket during the two week lapse. My ticket cost exactly what it would have cost had I bought it three weeks earlier when the airline was paying the excise tax. Yet the latest legislation providing “relief” (ie no refunds to customers) seems to me to benefit only the airlines: they collected an amount from me that was some 10% above the “true” ticket price, but now they don’t have to return that money to me OR pay it to the government. They just get to pocket it!
    Am I understanding this correctly? If so, this is outrageous.

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