Travel News

Fliers during FAA shutdown will not get tax refunds

By August 11, 2011 No Comments

Airline passengers who flew during the two-week Federal Aviation Administration shutdown this month and last won’t be receiving refunds of passenger taxes, the Internal Revenue Service said today.

The FAA lost its authority to levy those taxes on July 23 when Congress couldn’t agree on a continuing authorization to keep the agency operating fully. Airlines quit collecting those fees after July 23, but most raised their own fares to compensate. The agency shut down many of its operations during that period but not air traffic control. The agency reportedly lost some $400 million in tax collections during the two-week stalemate which ended at 12:01am Monday.

Fliers who bought their tickets before the Congressional standoff for flights during the tax-free period won’t be getting refunds, the IRS said, because the FAA had the authority to collect those taxes when they bought them.

Kathleen Roberts

Kathleen Roberts

Kathleen Roberts is the Vice President of Business Development and passionate about providing innovative solutions for corporate travel programs. She is a member of GBTA and Utah GBTA, as well as a Certified Travel Counselor (CTC) and Global Travel Professional (GTP). In addition to being a travel addict she finds joy in a good game of basketball. Connect with Kathleen on LinkedIn.

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