B6 Blows Off Pax For Illegally Collected Tax: 'File Claim With IRS'
Aug 11, 2011, 12:55 pm
#16
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Correct. Then, a few days later, the IRS rules that no refunds were due, when the reauthorization was made to be retroactive.
Aug 11, 2011, 12:57 pm
#17
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Aug 11, 2011, 6:36 pm
#18
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Aug 11, 2011, 6:38 pm
#19
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Aug 11, 2011, 6:45 pm
#20
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Aug 11, 2011, 6:49 pm
#21
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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.
Contrary to the OP's thought process, these things take time.
Aug 11, 2011, 6:52 pm
#22
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Since the reauthorization was retroactive, though, the airlines will need to make tax payments for all tickets used during that period.
Aug 11, 2011, 7:27 pm
#23
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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.
Aug 12, 2011, 8:14 am
#25
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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.
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.
Aug 12, 2011, 8:47 am
#26
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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.
Is a public appology in order?
Aug 13, 2011, 11:26 am
#27
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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.
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.