IRS: No Refund of Ticket Tax Paid Prior to Shutdown
Minggu, 07 Agustus 2011 by Android Blackberry
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| Ticket Tax Paid Prior to Shutdown |
IRS: No Refund of Ticket Tax Paid Prior to Shutdown
Fliers expecting a federal ticket-tax refund for flights they flew on for the duration of the Federal Aviation Administration's partial shutdown the past two weeks are out of luck.
The IRS stated Friday that no fliers who flew in the course of the partial shutdown, which began July 23, are eligible for refunds.
Airlines and the IRS previously stated fliers who bought tickets just before July 23 and traveled right after that date in the course of the partial shutdown may well obtain a refund for federal taxes paid on every single ticket.
Airlines stopped collecting the taxes on July 23 since Congress was unable to reach an agreement to re-authorize the FAA.
The Senate approved legislation Friday that ended the agency's partial shutdown and re-authorized FAA operations via Sept. 16. The partial shutdown, which caused a furlough of practically four,000 FAA staff and halted extra than 200 aviation development projects, resulted from an FAA funding standoff between the Home and also the Senate.
IRS spokesman Frank Keith says the re-authorization of the FAA's operations through Sept. 16 indicates that fliers who bought tickets before July 23 and traveled during the partial FAA shutdown aren't due a refund and those that bought tickets throughout the shutdown do not need to pay the federal ticket taxes.
Airlines have to resume charging the taxes Monday, the IRS says.
The Air Transport Association of America, which represents U.S. airlines, says the refund problem was solely an IRS matter.
"The Internal Revenue Service will be the ultimate arbiter on tax matters, and we defer to its choice concerning the collection of federal ticket taxes," says Steve Lott, a spokesman for the group.
Kate Hanni, executive director of passengers-rights group FlyersRights.org., says she's "flabbergasted" by the IRS' announcement, and "the flying public has been deceived concerning the ticket tax refunds.'
She says fliers who bought a ticket before July 23 and traveled for the duration of the FAA's partial shutdown paid federal taxes and received no benefit from them.
"At what point does the flying public matter to our government?" she asks.
Just before Friday's IRS announcement, corporations that bought tickets for quite a few staff who traveled during the partial FAA shutdown might have already been expecting large refunds.
Shane Downey of the Global Business enterprise Travel Association, which represents about five,000 corporate travel departments and travel suppliers, says "the important thing" is that no passengers will be retroactively taxed.
"This outcome may be the finest you can hope for from a bad situation," he says.
Fliers expecting a federal ticket-tax refund for flights they flew on for the duration of the Federal Aviation Administration's partial shutdown the past two weeks are out of luck.
The IRS stated Friday that no fliers who flew in the course of the partial shutdown, which began July 23, are eligible for refunds.
Airlines and the IRS previously stated fliers who bought tickets just before July 23 and traveled right after that date in the course of the partial shutdown may well obtain a refund for federal taxes paid on every single ticket.
Airlines stopped collecting the taxes on July 23 since Congress was unable to reach an agreement to re-authorize the FAA.
The Senate approved legislation Friday that ended the agency's partial shutdown and re-authorized FAA operations via Sept. 16. The partial shutdown, which caused a furlough of practically four,000 FAA staff and halted extra than 200 aviation development projects, resulted from an FAA funding standoff between the Home and also the Senate.
IRS spokesman Frank Keith says the re-authorization of the FAA's operations through Sept. 16 indicates that fliers who bought tickets before July 23 and traveled during the partial FAA shutdown aren't due a refund and those that bought tickets throughout the shutdown do not need to pay the federal ticket taxes.
Airlines have to resume charging the taxes Monday, the IRS says.
The Air Transport Association of America, which represents U.S. airlines, says the refund problem was solely an IRS matter.
"The Internal Revenue Service will be the ultimate arbiter on tax matters, and we defer to its choice concerning the collection of federal ticket taxes," says Steve Lott, a spokesman for the group.
Kate Hanni, executive director of passengers-rights group FlyersRights.org., says she's "flabbergasted" by the IRS' announcement, and "the flying public has been deceived concerning the ticket tax refunds.'
She says fliers who bought a ticket before July 23 and traveled for the duration of the FAA's partial shutdown paid federal taxes and received no benefit from them.
"At what point does the flying public matter to our government?" she asks.
Just before Friday's IRS announcement, corporations that bought tickets for quite a few staff who traveled during the partial FAA shutdown might have already been expecting large refunds.
Shane Downey of the Global Business enterprise Travel Association, which represents about five,000 corporate travel departments and travel suppliers, says "the important thing" is that no passengers will be retroactively taxed.
"This outcome may be the finest you can hope for from a bad situation," he says.
