Expired Federal Airline Tax

NYwdwfan

NYwdwfan

Well-Known Member
Original Poster
I'm quite fuzzy on this - so forgive me if I mess up the details - but apparently as of 7/22/2011 the Government airline tax has expired, and airlines no longer have the right to collect these taxes on flights taking place after 7/22, even if tickets were purchased before that date (the fees are passed along to the government at the time of the flight). Any flights that take place after 7/22 but before this issue is resolved will be due a refund of the government tax that was collected at the time of purchase - somewhere around $25 per ticket. Some airlines are instructing people to contact the IRS, some are issuing the refund directly. JetBlue has information on their website that they will issue a refund to anyone traveling in the next 7 days, but further out than that will need to wait for further information. The full article from USA Today is linked below. Hopefully we can all get some $$ back!!

http://travel.usatoday.com/flights/post/2011/07/airline-fees-tax-holiday/178394/1
 
GOT2SAMMIES

GOT2SAMMIES

Member
Funny you should mention that! I read the same article and mind you I JUST purchased my flight tickets on 7/21... So Monday morning I checked the fare for Airtran ( I am coming from Va) and the fare was $14.80 CHEAPER which was the amount of taxes I paid. So I called them up.. I was told by the agent if the fair was cheaper I could get a credit..well she checked and I was right... so she issued me a credit NOT refund.. So I am gonna take my $14.80 credit and apply it to me check baggage fee:D
 
NYwdwfan

NYwdwfan

Well-Known Member
Original Poster
GOT2SAMMIES said:
Funny you should mention that! I read the same article and mind you I JUST purchased my flight tickets on 7/21... So Monday morning I checked the fare for Airtran ( I am coming from Va) and the fare was $14.80 CHEAPER which was the amount of taxes I paid. So I called them up.. I was told by the agent if the fair was cheaper I could get a credit..well she checked and I was right... so she issued me a credit NOT refund.. So I am gonna take my $14.80 credit and apply it to me check baggage fee:D
Click to expand...

Oh wow - that's great! Keep an eye on the tax issue - you may be due more money if your flight date rolls around and the fee has not been reinstated.
 
irmonkey

irmonkey

Member
Booked a flight a couple weeks ago for my sister in law on American Airlines and it's $3 more today then when we booked it. So I guess they raised their fare by the 7.5% margin created by the lack of the tax?
 
NYwdwfan

NYwdwfan

Well-Known Member
Original Poster
New information from the IRS website: (Jetblue is now joining the others in saying refunds need to be requested from the IRS)

Q. If I travel on or after July 23, 2011, and I purchased my ticket on or before July 22, 2011, am I entitled to a refund for the federal air transportation excise taxes that I paid when I purchased the ticket? If so, will my airline refund the tax to me?

A. Passengers who paid for tickets on or before July 22, 2011, for travel beginning on or after July 23, 2011, may be entitled to a refund of the tax. Airlines are permitted to refund the tax to the passenger, just as they do in the ordinary course of business when issuing refunds for unused refundable tickets (including the associated taxes). Because the airlines and travel service providers already have the information about passenger ticket purchases and travel, and in many cases have payment card information that may facilitate streamlined refunds, the IRS has asked the airlines to provide refunds to eligible passengers when requested. However, passengers who are unable to obtain a refund from the airline may obtain a refund by submitting a claim to the IRS. Because the IRS has no information about passenger ticket purchases or travel dates, travelers who are unable to obtain a refund from the airline will be required to submit proof of taxes paid and travel dates to the IRS under procedures that are under development. The IRS will provide additional guidance at a later date.
 
mickeysshoes

mickeysshoes

Well-Known Member
So do we have any info on how to contact the IRS?? Call or in writing. We dont fly until 8/19..purchased tickets with JetBlue back in January..so I take it we would be due a refund. Should I do this now or wait?? I will take all the refund I can get...but I want a refund NOT a credit.
 
Victoria

Victoria

Not old, just vintage.
I have flights on Virgin America on 8/17 and 8/22. Am I only due a refund if the tax isn't reinstated by then? Virgin is directing everyone to deal with the IRS and I really don't want to bother with the IRS unless I am definitely going to get money back. :lol:
 
wilkeliza

wilkeliza

Well-Known Member
mickeysshoes said:
So do we have any info on how to contact the IRS?? Call or in writing. We dont fly until 8/19..purchased tickets with JetBlue back in January..so I take it we would be due a refund. Should I do this now or wait?? I will take all the refund I can get...but I want a refund NOT a credit.
Click to expand...

Jetblue is saying you must now deal with the IRS directly. This is a new change because last week they were giving out refunds. I'm not sure how fast any of us will see refunds because of the whole money issue in Washington. I am not sure if the IRS even has money to give out at the moment. If they don't then this will probably all result in a credit on your income taxes at the end of the year.
 
mickeysshoes

mickeysshoes

Well-Known Member
I have a friend that works on the Capital Hill...I will ask her about it this weekend...to see what insight she can give me..weather or not a new law will be passed and if its worth our time.
 
worldfanatic

worldfanatic

Well-Known Member
:brick::brick::brick::brick:

If you guys are so worried about such a small amount of money, and willing to jump through hoops to get it, what are you doing going to an expensive place like Walt Disney World????

Perhaps your money is better spent on your daily living expenses.
Or are you just being cheap????
 
Victoria

Victoria

Not old, just vintage.
worldfanatic said:
:brick::brick::brick::brick:

If you guys are so worried about such a small amount of money, and willing to jump through hoops to get it, what are you doing going to an expensive place like Walt Disney World????

Perhaps your money is better spent on your daily living expenses.
Or are you just being cheap????
Click to expand...


Really? :brick:

I'm not being cheap, I'm being smart with my money. Disney World (or in this particular case Disneyland) is something I choose to spend money on. Yes it is expensive but I can afford it. Wanting to get back a few bucks that might be rightfully owed to me doesn't impact whether or not I go on the trip. I'm just not in the business of letting people keep my money just for the hell of it. $20-$30 might not be a lot to you, but to me it is worth fighting for within reason.

If the IRS makes it super complicated to get the refund then I will most likely let it go. If it is just a matter of filling out a form or two, then I will do it...and I will do it for the same reason I clip coupons weekly or only shop sales. I refuse to pay more for something if there is an easy and effective way for me to pay less. I also like to think that it is BECAUSE I clip coupons, shop sales, and am careful with money that I am fortunate enough to visit Disney parks multiple times a year.
 
NYwdwfan

NYwdwfan

Well-Known Member
Original Poster
worldfanatic said:
:brick::brick::brick::brick:

If you guys are so worried about such a small amount of money, and willing to jump through hoops to get it, what are you doing going to an expensive place like Walt Disney World????

Perhaps your money is better spent on your daily living expenses.
Or are you just being cheap????
Click to expand...

I'm sure the government would LOVE for the millions of people that fly to forego the refund. I'd prefer to keep the money in my own pocket. I'm not sure how that gives you the assumption to think I need money for daily living expenses, but I'm certainly not going to feel the need to defend my monetary choices, quality of living or vacation spending.

The tax is approximately 7.5% of the ticket (before the other taxes) so for my family of 4: 8 tickets at $100 each = $56. I know our $100 tickets are pretty inexpensive (or cheap, if you prefer) so there are many on these boards who could get back more (some perhaps substantially more).

Oh - and I'm not cheap. I'm an accountant.
 
worldfanatic

worldfanatic

Well-Known Member
:ROFLOL::sohappy::ROFLOL::sohappy:

Sorry guys!
Sometimes I just like to stir it up.
This seemed like a perfect thread to do so!!

Never mind me.
I saw an opportunity to be an a-- and took it!:hammer:

GO GET THAT MONEY!!!!!
 
NYwdwfan

NYwdwfan

Well-Known Member
Original Poster
worldfanatic said:
:ROFLOL::sohappy::ROFLOL::sohappy:

Sorry guys!
Sometimes I just like to stir it up.
This seemed like a perfect thread to do so!!

Never mind me.
I saw an opportunity to be an a-- and took it!:hammer:

GO GET THAT MONEY!!!!!
Click to expand...

And so it goes on the message boards during the slow summer months...:rolleyes:

I thought for sure someone would comment on the accountant being cheap!! :D
 
ddrongowski

ddrongowski

Well-Known Member
I see this not ending well....

I figure they will reinstate the tax and will make it retroactive. Thus those that got their money back will be on the hook. Also the airlines that did not collect the tax will get hit with a large IRS bill, and will need to go after the customers for the tax. That in turn will make customer upset and make it harder for the airline to stay in buisness.

YEAH FOR BIG GOVERNMENT!!!!!:sohappy:
 

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