Go Back  FlyerTalk Forums > Miles&Points > Airlines and Mileage Programs > JetBlue | TrueBlue
Reload this Page >

B6 Blows Off Pax For Illegally Collected Tax: 'File Claim With IRS'

B6 Blows Off Pax For Illegally Collected Tax: 'File Claim With IRS'

Reply

Old Aug 11, 11, 12:55 pm
  #16  
FlyerTalk Evangelist
 
Join Date: Jan 2003
Location: Brooklyn, NY, USA
Programs: DL SM Plat, B6 TrueBlue, UA MP, AAdvantage
Posts: 10,008
Originally Posted by Seat13c View Post
The fed gov't has the that money collected and have instruded the airlines to advised passengers contact the IRS (not JetBlue) for the refund. JetBlue is just fallowing orders from a higher authority.
Correct. Then, a few days later, the IRS rules that no refunds were due, when the reauthorization was made to be retroactive.
TWA Fan 1 is offline  
Reply With Quote
Old Aug 11, 11, 12:57 pm
  #17  
FlyerTalk Evangelist
 
Join Date: Jan 2003
Location: Brooklyn, NY, USA
Programs: DL SM Plat, B6 TrueBlue, UA MP, AAdvantage
Posts: 10,008
Originally Posted by dieuwer2 View Post
How much money are we talking about anyway?
I don't have the exact rate, but I believe the tax was about 6.5% of the ticket value.

For a $350 ticket that would be about $22.75.
TWA Fan 1 is offline  
Reply With Quote
Old Aug 11, 11, 6:36 pm
  #18  
FlyerTalk Evangelist
 
Join Date: Aug 2005
Location: PERMANENTLY TERMINATED ACCOUNT
Posts: 13,905
Originally Posted by TWA Fan 1 View Post
I don't have the exact rate, but I believe the tax was about 6.5% of the ticket value.

For a $350 ticket that would be about $22.75.
Personally, I would not spend days complaining and fighting with JetBlue over $22.75...
Dieuwer is offline  
Reply With Quote
Old Aug 11, 11, 6:38 pm
  #19  
FlyerTalk Evangelist
 
Join Date: Jan 2003
Location: Brooklyn, NY, USA
Programs: DL SM Plat, B6 TrueBlue, UA MP, AAdvantage
Posts: 10,008
Originally Posted by dieuwer2 View Post
Personally, I would not spend days complaining and fighting with JetBlue over $22.75...
Agreed, especially since the IRS has ruled that no refunds will be issued.
TWA Fan 1 is offline  
Reply With Quote
Old Aug 11, 11, 6:45 pm
  #20  
FlyerTalk Evangelist
 
Join Date: Aug 2005
Location: PERMANENTLY TERMINATED ACCOUNT
Posts: 13,905
Originally Posted by TWA Fan 1 View Post
Agreed, especially since the IRS has ruled that no refunds will be issued.
In fact, I did buy a ticket BOS-JFK for about $90 just before the "tax holidays" for departure during the "tax holidays", but decided to not pursue a refund while hoping B6 would stick the tax into its own pocket
Dieuwer is offline  
Reply With Quote
Old Aug 11, 11, 6:49 pm
  #21  
 
Join Date: Jul 2001
Location: Phoenix, AZ
Programs: HH Gold, AA Gold
Posts: 9,850
Furthermore, the airlines were between a rock and a hard place. First of all, Congress could have acted (and often does) at the last minute. It is likely that they needed a ruling from the IRS as to whether they needed to keep collecting taxes. It is highly doubtful that there was anyone in the IRS office at 12 midnight EDT -- particularly someone with the authority to issue a ruling. Then, the airlines had to have their programmers disable the tax portion of the transaction, which is a non-trivial programming issue, and test it to make sure it works correctly.

Contrary to the OP's thought process, these things take time.
formeraa is offline  
Reply With Quote
Old Aug 11, 11, 6:52 pm
  #22  
FlyerTalk Evangelist
 
Join Date: Jan 2003
Location: Brooklyn, NY, USA
Programs: DL SM Plat, B6 TrueBlue, UA MP, AAdvantage
Posts: 10,008
Originally Posted by dieuwer2 View Post
In fact, I did buy a ticket BOS-JFK for about $90 just before the "tax holidays" for departure during the "tax holidays", but decided to not pursue a refund while hoping B6 would stick the tax into its own pocket
Since the reauthorization was retroactive, though, the airlines will need to make tax payments for all tickets used during that period.
TWA Fan 1 is offline  
Reply With Quote
Old Aug 11, 11, 7:27 pm
  #23  
nsx
Moderator: Southwest Airlines
 
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, United Club ex-Lifetime Member
Posts: 19,452
Originally Posted by TWA Fan 1 View Post
Since the reauthorization was retroactive, though, the airlines will need to make tax payments for all tickets used during that period.
Do you have a source on that? My understanding is the opposite: that taxes not collected from the customer are not due from the airline.
nsx is offline  
Reply With Quote
Old Aug 12, 11, 6:22 am
  #24  
FlyerTalk Evangelist
 
Join Date: Aug 2005
Location: PERMANENTLY TERMINATED ACCOUNT
Posts: 13,905
Originally Posted by TWA Fan 1 View Post
...reauthorization was retroactive...
Sounds unconstitutional to me.
Dieuwer is offline  
Reply With Quote
Old Aug 12, 11, 8:14 am
  #25  
nsx
Moderator: Southwest Airlines
 
Join Date: Sep 1999
Location: California
Programs: WN Companion Pass, A-list preferred, United Club ex-Lifetime Member
Posts: 19,452
Originally Posted by dieuwer2 View Post
Sounds unconstitutional to me.
The US Supreme Court has consistently allowed tax legislation to be retroactive. At the state level, close to year of retroactivity is common.

Tax law is second-class law, not subject to the strict rules of fairness that govern other laws. You could complain about this, but then you'd have to post in OMNI/PR. The fact is that retroactivity is not only allowed, but it happens all the time.
nsx is offline  
Reply With Quote
Old Aug 12, 11, 8:47 am
  #26  
 
Join Date: Jun 2004
Location: What I write is my opinion alone..don't read into it anything not written.
Posts: 9,573
Originally Posted by mbstone View Post
We received an email from JetBlue refusing to refund the unauthorized and illegally collected tax on our ticket. They claim "IRS already has the money" and we need to go file a claim with the IRS. This is absolutely outrageous and unacceptable. First of all JetBlue had no legal authority to collect this tax. Second, if JetBlue really wanted pax to file claims with the IRS, they would issue an IRS Form W-2 or whatever. JetBlue has provided no information as to how one is supposed to go about filing with the IRS for this money.
So how do you feel now that it is clear that B6 did exactly what they were supposed to instead of a) having no authority to collect the tax, and b) it was neither outrageous nor unacceptable?

Is a public appology in order?
fastair is offline  
Reply With Quote
Old Aug 13, 11, 11:26 am
  #27  
FlyerTalk Evangelist
 
Join Date: Jan 2003
Location: Brooklyn, NY, USA
Programs: DL SM Plat, B6 TrueBlue, UA MP, AAdvantage
Posts: 10,008
Originally Posted by dieuwer2 View Post
Sounds unconstitutional to me.
Not at all. Plenty of taxes (and tax credits) are authorized retroactively.

In this case the retroactive nature was largely technical, since carriers continued to collect the tax.

Also, let's face it, these taxes are important. They help to fund the F.A.A., without which no one can get on a plane and fly anywhere. It's just a cost of air travel.
TWA Fan 1 is offline  
Reply With Quote

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Thread Tools
Search this Thread