BY Kathleen Roberts |

Fliers during FAA shutdown will not get tax refunds

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.