Q. Why did some federal taxes expire – and when did they come back?
Due to Congressional negotiations over the Federal Aviation Administration (FAA) budget, domestic carriers no longer had the authority to charge some federal excise taxes on all flights as of 12:01am on July 23, 2011 through 12:01 am on Monday, August 8, 2011. As of August 5, 2011, Congress had negotiated a budget resolution and all airlines were instructed by the Internal Revenue Service (IRS) to begin collecting federal air transportation taxes again at 12:01 am on Monday, August 8, 2011.
Q. Are certain Virgin America guests entitled to a refund of Federal Aviation Taxes?
The IRS issued a statement on August 5, 2011, announcing that Congressional action to extend the Federal Aviation Administration (FAA) authorization reinstated airline ticket taxes retroactively for those who traveled during the lapse of the FAA's authorization. Based on this IRS guidance, impacted guests are not eligible for a refund of airline ticket taxes. For more on the latest IRS guidance, see: http://www.irs.gov/newsroom/article/0,,id=242812,00.html?portlet=6