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Is Excise Tax refund available on AA (for travel beginning after July 22, 2011)?

Is Excise Tax refund available on AA (for travel beginning after July 22, 2011)?

 
Old Jul 23, 11, 4:48 am
  #1  
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Is Excise Tax refund available on AA (for travel beginning after July 22, 2011)?

Information Regarding U.S. Ticket Tax
The U.S. excise tax on airline tickets for domestic and certain international air transportation expires at midnight, July 22, 2011. Until Congress provides otherwise, tickets sold by American Airlines after July 22, 2011, will not include these U.S. ticket taxes. Passengers who paid U.S. ticket taxes on or before July 22, 2011, for travel beginning after July 22, 2011, may be entitled to a tax refund. If travel commenced on or before July 22, 2011, U.S. ticket taxes are not eligible for refund even if a portion of the travel occurs after July 22.

We anticipate further guidance from the IRS. At this time, passengers may direct their refund requests to the IRS.

http://www.aa.com/i18n/reservations/refunds.jsp

===================MODERATOR NOTE===================

Please see this IRS page for clarification on many questions that have been raised in this thread:

http://www.irs.gov/newsroom/article/...242812,00.html

Please see the thread entitled US excise tax expiry July 23 2011 issues (consolidated) about issues relating to the excise tax expiry not directly related to refunds.

AA Forum Co-Moderators

Last edited by dstan; Jul 27, 11 at 4:26 pm
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Old Jul 23, 11, 6:16 am
  #2  
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My guess is No but I'll ask anyway

Are any part of award taxes part of the refundable excise tax?
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Old Jul 23, 11, 10:34 am
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How does this work? We have to direct refund requests to the IRS? Do we add it on our tax returns?

I'll just wait until AA makes an easy page for me to enter in all my ticket numbers.
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Old Jul 23, 11, 10:43 am
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Originally Posted by FlyMeToTheLooneyBin View Post
How does this work? We have to direct refund requests to the IRS? Do we add it on our tax returns?

I'll just wait until AA makes an easy page for me to enter in all my ticket numbers.
Tax refund= ask them to refund the tax portion, not file a tax return for it ^

--wes
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Old Jul 23, 11, 10:45 am
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Originally Posted by wesmanz View Post
Tax refund= ask them to refund the tax portion, not file a tax return for it ^

--wes
Well, it could go on as a tax credit, like they did for cell phone usage about five years ago. That's a tax refund that went on the tax return. This is just speculative.

I have a lot of flights booked post-July 22.
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Old Jul 23, 11, 10:56 am
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Originally Posted by FlyMeToTheLooneyBin View Post
Well, it could go on as a tax credit, like they did for cell phone usage about five years ago.
The credit available then was for an overpaid excise tax on landlines, not cell phones. It was easier to process a credit that way than for the IRS to force people to file a Form 720, Claim for Refund, for relatively small dollars.

Originally Posted by FlyMeToTheLooneyBin View Post
This is just speculative.
Yes, it is.
There will be no credit on a tax return for this one.
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Old Jul 23, 11, 11:11 am
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Well, we'll see. If the fee has to be refunded for flights occurring when the fee is invalid, doesn't it logically follow that the fee has (or ought) to be collected for flights occurring after the fee becomes valid again?

IE, the only people who get away with not paying the use fee would be the ones who travel in the narrow window between 12:01 AM 7/23 and whenever the FAA is reauthorized.

That's just a guess, of course. And I'm guessing (hoping?) that Congress will do the responsible thing and act on a stopgap bill soon after the House returns from Recess on 7/25.

Last edited by lobo411; Jul 23, 11 at 11:17 am
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Old Jul 23, 11, 2:28 pm
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Originally Posted by lobo411 View Post
Well, we'll see. If the fee has to be refunded for flights occurring when the fee is invalid, doesn't it logically follow that the fee has (or ought) to be collected for flights occurring after the fee becomes valid again?

IE, the only people who get away with not paying the use fee would be the ones who travel in the narrow window between 12:01 AM 7/23 and whenever the FAA is reauthorized.

That's just a guess, of course. And I'm guessing (hoping?) that Congress will do the responsible thing and act on a stopgap bill soon after the House returns from Recess on 7/25.
When was the last time congress did the "responsible thing"?
AA is no rush since they increased their fares by the tax amount.
They are probably lobbying to delay as long as possible.
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Old Jul 23, 11, 2:43 pm
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I'm sure refund requests directed to the IRS will be handled "promptly."
I have 5 flights in August already booked.
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Old Jul 23, 11, 5:36 pm
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Which tax is it in this ITA breakdown? (or does this domestic itinerary not have it listed?)

Code:
US Transportation Tax (US)          $38.50
US September 11th Security Fee (AY) $10.00
US Passenger Facility Charge (XF)   $18.00
US Flight Segment Tax (ZP)          $18.50
Thanks!
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Old Jul 23, 11, 6:32 pm
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Originally Posted by zman View Post
When was the last time congress did the "responsible thing"?
AA is no rush since they increased their fares by the tax amount.
They are probably lobbying to delay as long as possible.
Heh! Well, maybe it will be like one of those Twilight Zone episodes where they all go blind until they do the right thing! =P
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Old Jul 23, 11, 6:37 pm
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Originally Posted by dstan View Post
Which tax is it in this ITA breakdown? (or does this domestic itinerary not have it listed?)

Code:
US Transportation Tax (US)          $38.50
US September 11th Security Fee (AY) $10.00
US Passenger Facility Charge (XF)   $18.00
US Flight Segment Tax (ZP)          $18.50
Thanks!

It should refers to US transportation Tax & US Flight Segment Tax.
As it's currently still charge for
US September 11th Security Fee (AY) $10.00
US Passenger Facility Charge (XF) $18.00



Domestic Travel

September 11th Security Fee of $2.50 per U.S. enplanement
Airport passenger facility charges (PFCs) of up to $18 roundtrip
International Travel (including Puerto Rico and U.S. Virgin Islands)

September 11th Security Fee of $2.50 per U.S. enplanement
Airport passenger facility charges (PFCs) of up to $18 roundtrip
Other government taxes and fees (including foreign taxes based on itinerary or billing address) of up to $190 USD may apply; total may vary slightly based upon currency exchange rate at time of purchase.
If you choose to pay using a credit card or U.K.-billed PayPal account, a processing fee of 4.50 per ticket may apply. Payments with debit cards are exempt from this fee.
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Old Jul 24, 11, 4:18 pm
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Originally Posted by Fly2Where View Post
It should refers to US transportation Tax & US Flight Segment Tax.
Thanks, that's a good chunk, then.
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Old Jul 24, 11, 9:32 pm
  #14  
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Originally Posted by dgreen12 View Post
The credit available then was for an overpaid excise tax on landlines, not cell phones. It was easier to process a credit that way than for the IRS to force people to file a Form 720, Claim for Refund, for relatively small dollars.
Uhh.... No. It was for landlines and cell phones.

http://www.irs.gov/newsroom/article/...164032,00.html

Further, depending on how much LD you did during the refundable time-frame, you could've netted a $100+ dollars like I did. (Yes, I was able to produce all statements for the applicable time period thanks to Verizon and Nextel for sending me statement copies gratis.)
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Old Jul 24, 11, 9:38 pm
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Originally Posted by TrojanHorse View Post
My guess is No but I'll ask anyway

Are any part of award taxes part of the refundable excise tax?
It looks like AA is still collecting the 11 Sept fee on tickets purchased, so your award ticket wouldn't be eligible for a refund as that is the only tax charged on domestic awards. Right now, AA is directing people to go to the IRS for a refund. Waste of time since the IRS's official position is that they have no position.

http://www.irs.gov/newsroom/article/...242812,00.html

Guess we'll have to wait and see how this plays out. I'm happy that we should receive something back from Uncle Sam.

Last edited by uxb; Jul 24, 11 at 9:51 pm
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