FAA Tax Refunds to Come For Tickets Purchased Before July 23

Aug 3, 2011

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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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