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Today TaxMama wants to alert you to a potential summer refund available to you. This is important news for frequent travelers! This could be worth a lot of money to you.
Dear Family,
On July 22, 2011, IRS issued a Statement on Airline Ticket and Other Aviation-Related Taxes
The IRS said, that the laws authorizing the airline ticket tax and other aviation-related taxes expired at midnight on Friday, July 22. The IRS continues to monitor pending legislation related to this issue. The IRS will continue to work with the airline industry to address issues relating to the collection and payment of the taxes involved. Taxpayers do not need to take any action at this time. The IRS will provide further guidance on this issue in the near future.
The IRS has an FAQ page answering some questions about how this affects you.
The National Association of Enrolled Agents has taken the liberty of pulling the one question that should be of most interest to you.
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 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… 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. [TaxMama emphasis] However, passengers who are unable to obtain a refund from the airline may obtain a refund by submitting a claim to the IRS…[which] will provide guidance at a later date.
According to in this New York Times article, these taxes and fees total approximately $60 on an average $300 fare, so the potential refund could be significant for anyone who travels with any frequency (and probably enough for most to seek the cash on a single flight).
Anyone traveling internationally, or frequently will have even more money coming to you. So remember to request your refund!
And remember, you can find answers to all kinds of questions about special tax refunds and other tax issues, free. Where? Where else? At www.TaxMama.com.
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