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No Refund For Airline Passengers

IRS: Passengers won't get back money stolen by airlines

Aug 09, 2011

Reports now show that most airline passengers that traveled during the partial shutdown of the Federal Aviation Administration will not be getting any kind of tax refund. This news comes after many media sources claimed that many passengers could be entitled to a refund from either the airline that they flew with or the IRS.

When all of this first started, the IRS did say that some passengers may be entitled to a refund. This was because the federal government was not authorized to collect taxes on airline tickets during this shutdown. After that, estimates from all over the web started to pop up. Some sources say that people could have been entitled to a refund of as much as $60 to $300.

However, thanks to a new bill just recently passed by President Obama, the Federal Aviation Administration will be restarted. This technically makes all the taxes retroactive to July 23, which was the first day of the shutdown. That being said, no taxpayers would be owed any kind of refund for taxes they paid on flights. Of course, the IRS did say that they are not going to attempt to collect back taxes from either passengers or airlines.

So yes, this new bill does mean that some people are not going to see a refund on taxes paid. However, it does mean that some 4,000 Federal Aviation Administration agents can return to work. It is also a positive thing for some 70,000 construction workers, who could have been let go, due to airport projects that had been halted.

IRS: Passengers won't get back money stolen by airlines

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