The IRS has decided that passengers who purchased airline tickets before the lapse of the FAA's authorization, but also traveled during that time, will not receive a refund for the taxes collected.
Maybe the better news for passengers is that the IRS is not forcing those who purchased tickets during that lapse, to pay taxes for those future flights, now that the FAA authorization has been reinstated.
Since the FAA Reauthorization Bill was delayed for about two weeks beginning July 23, 2011,without an extension agreed upon in the House and Senate, there was a loss of at least $20 million in taxes that were not collected from passengers during that time frame. Plus around 70,000 workers were furloughed. Taxes are now being collected and those were workers should be back to work.
The new extension will last through September 16, 2011. By then a new Reauthorization Bill is hoped to be agreed upon by the House and Senate. There has not been a permanent FAA Reauthorization Bill since 2007.
The shutdown also caused airport construction projects to shut down. The FAA also could not collect tax on avgas as well, creating pricing problems with companies who sell the fuel.
What problems or questions came about from passengers to their travel agents during this period? Did clients save a lot of money overall?
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