jpmardini

http://travel.usatoday.com/flights/s...Top+Stories%29

and

http://www.irs.gov/newsroom/article/...html?portlet=6

Sorry if someone has already posted this...

fti

Like we really expect the same airlines who raised their fares to compenstate for the decrease in taxes to really do this?!? I won't hold my breath!

And as the USA Today article states, the airlines are already balking.

TTT

Do airlines remit the taxes to the FAA at time of purchase or at time of travel?

jpmardini

True.

From IRS:
For me, my time is way more valuable than dealing with the IRS for air taxes.

jpmardini

I would think it's a big bill with all the purchases and taxes remitted monthly. That's how the FCC collects its taxes from the phone/cable companies.

pennyemporium

previously discussed here:
http://www.flyertalk.com/forum/delta...elates-dl.html

when i asked delta, this was their reply: (short answer)

"To address your comments regarding airfares, please allow me to explain that following the expiration of the Federal Aviation Administration extension, all of the major U.S. carriers adjusted their fares. Delta was competitive with other airlines in making that adjustment.

For customers traveling during the shutdown period, the tax previously paid may be considered an overpayment. Delta collects taxes at the time of purchase and passes them on to the government. Customers may be eligible for a refund, however, the policy is being reviewed as Delta awaits further guidance from the Internal Revenue Service on refund procedures."

Pharaoh

I would think the question refers to the timing of the credit to that payment account rather than the physical (ok, electronic) transfer of money.

DCBob

The taxes are remitted to the IRS with Form 720 based on when the taxes are paid. The FAA has nothing to do with tax collection. See the link to the USA Today article in post #1.

TTT

Yes - I meant the IRS. So taxes are remitted from the airline to the IRA at the time of ticket purchase. If so, the IRS would be the best source for a refund as they currently are in possession of the money. Why would the airlines refund something they no longer have?

Thanks - yes I was meaning the timing of the transfer rather than the actual mechanics of it all.

DaDaDan

While the IRS has the money, the airlines have the data on who is owed the money. The IRS could easily give the money back. Similarly, the airlines could easily (though probably less easily) give the data to the IRS.

This whole thing is going to cost someone money. Either the IRS is going to have to develop procedures to accept a new form, verify the tax was paid but was not due, and then refund it. Or, the airlines will have to analyze all of their passenger tickets and come up with a way of refunding the money themselves. Both of those things are a lot of work and therefore a lot of money. So, obviously the IRS and the airlines are pointing the finger at each other as being the responsible party.

It's not clear to me who is "right" from society's standpoint. Nor do I see why passengers should have a view as to who is right yet. I would assume passengers should want the easiest possible refund procedure. At the moment, both the IRS and the airlines are talking about a "request" process rather than an automatic process. So, it seems like either route is equally burdensome for passengers.

fti

Having problems with acronyms?. Let's hope the airlines don't remit the $$ to the IRA (Irish Repulican Army)

DCBob

The airlines can offset the amounts refunded against the amount due on Form 720 or claim a refund on Form 8849. Very simple for them to do. They have all the information electronically and any IT programmer with the proper training can write a program for passenger refunds. Whether Delta can do this is another question.

TTT

That makes sense and I think you are right - the process will be burdensome for both the IRS and the airlines. I would not expect anyone who is due a refund to receive it in a timely manner unfortunately.

Apparently Delta is more than welcome to remit money to my Individual Retirement Account though

amanuensis

They can remit the dollars to my IRA (Individual Retirement Arrangement).

javabytes

I asked Delta where I could get my taxes back from. They said to contact the IRS. Sounds like that is the avenue they have chosen, at least for now.