In theory, a report is generated at the end of the month or quarter showing ticket sales and the amo

It is my understanding that although the fare is not refundable, the taxes included in the price of an airline ticket are refundable, he says. Airlines act as tax collectors, but they are supposed to hold the taxes in escrow until you actually travel, when they pay the government(s).
Tickets for domestic air transportation are subject to an air transportation excise tax of 7.5% of the air fare plus $3.70 per flight segment. By law, this tax applies to the sale of air transportation, not to the transportation itself. Airlines remit this tax to the government shortly after the ticket is issued. If the passenger changes his or her schedule travel agent sites and forfeits the air fare on a non-refundable ticket, the airline still owes this tax to the government.
Under the law, if an airline refunds the air fare, it is free to, but not required to, refund the tax. If the airline refunds the air fare but does not refund the tax, the traveler can claim the a refund of the tax from the IRS by filing form 8849 with that agency. If the airline does not refund the fare, then as indicated in the previous paragraph the tax on that fare is payable to the government.
The U.S. Department of Transportation travel agent sites does not regulate any of the various government fees that appear on airline tickets. The U.S. air transportation travel agent sites excise tax on airline tickets is administered by the Internal Revenue Service, Office of the Chief Counsel, Excise Tax Branch (202-622-3130).
Similarly, travel agent sites the other taxes and government fees on airline tickets are each administered by the agency that oversees the fee in question. For example, travel agent sites an "XF" fee is a Passenger Facility Charge of up to $4.50 per participating airport, which is used for airport improvements; this fee is administered by the Federal Aviation Administration.
On international tickets, an "XY" charge is an immigration inspection fee, and a "YC" charge is a customs inspection fee. Both of those fees are administered by the office of Immigration travel agent sites and Customs Enforcement of the Department of Homeland Security. There is also an agricultural inspection fee on tickets for international transportation; this fee is administered by the U.S. Department of Agriculture.
I wonder what would happen if a site like Yapta decided to build an automated system that applied for a refund from airlines that had a policy to offer taxes back? How much money could air travelers save particularly when taxes can sometimes account for nearly half the airfare?
travel agent sites So are they also saying that the federal taxes on a refundable ticket are sent to the government travel agent sites shortly after the ticket travel agent sites is booked, and that if the passenger cancels the ticket, the airline has to eat the taxes when they refund the ticket?
This is, of course, absurd, but it s indicative of what has been happening to the poor traveler over the last several years. My Wife and I had to cancel a trip a couple of months ago, and we were surprised that we didn t encounter a problem with the airlines refunding taxes. We were especially pleasantly surprised that LOT Airlines, a Polish company, even refunded what we paid for non-refundable tickets, after we explained the situation, charging only a moderate fee to do this. Chances are, though, this largesse won t continue. I m sure that when the airlines who aren t currently keeping the taxes will hear about the ruling , and after thinking about it for two seconds, will start doing the same thing, just as they did with baggage fees. I predict that before long, airlines will follow the lead of Spitit and start to charge extra for carry-ons, and before long, the suggestion that RyanAir put forth for charging passengers to use the Restroom will be intriguing to them.
It happens to me several times when I redeposit an Aeroplan award ticket, all the taxes are reimbursed by Aeroplan on the spot. The same logic apply when I change the itinerary travel agent sites of my award tickets, Aeroplan reimbursed the taxes on the old ticket and collect the new applicable taxes on the replacement travel agent sites ticket. And Skyteam do it too. It s a matter of computer programming. Very smoothly and on the spot and clearly specified travel agent sites on the e-Tickets.
With regards to any ticket, the taxes appear to be sent off shortly. However, like any merchant, the airline can refund the taxes along with the ticket and then claim a credit against its own tax account.
How you came to that conclusion is baffling. Just because taxes are remitted doesn t mean that they can t claim a credit for taxes which are later refunded. Think about any other item that you have purchased. If you get a refund, the store doesn t eat the sales tax. Its get it back from the taxing authority.
The real question is the US government is auditing the airlines travel agent sites (as well as state city governments in the case of hotels in regards travel agent sites to the cancellations of non-refundable non-changeable room reservations or cancellations of room reservations after the deadline) to insure that the airlines are paying the government the taxes.
In theory, a report is generated at the end of the month or quarter showing ticket sales and the amount due to the government. We don t know if the airlines are removing the cancellation of non-refundable fares from this report.
Given that there are $ 250K a year SEC employees watching porn for the whole day on the government dime and DOD employees at the Pentagon buying, selling and watching the kiddie porn on the government dime, I have concerns that the government is prudently watching and auditing travel agent sites the airlines over the collection of these taxes.
However, since all of the large US-based airlines are publicly traded companies, they fall under SOX ( Sarbanes–Oxley) regulations. I do have more faith that the independent auditors will catch the airlines keeping the collected taxes. travel agent sites I work for a publicly traded company and the indpendent auditors travel agent sites checked every single transaction of our billions of reveunes.
Personally, I think that taxes should NOT be refunded on a non-refundable ticket since it is non-refundable travel agent sites and the sale is completed upon the sale of the ticket. However, the government (local, state and federal) should be auditing airlines and hotels making sure that they are paying the collected taxes.
@ Bob Johnson So are they also saying that the federal taxes on a refundable ticket are sent to the government shortly after the ticket is booked, and that if the passenger cancels the ticket, the airline has to eat the taxes when they refund the ticket?
No, what they re saying is, the tax is due on the sale of a ticket, and must be remitted immediately. If the ticket is ultimately refunded, the airline can apply for a refund on their next excise tax return. What I don t know, however, is that if a ticket is canceled, but the fare is nonrefundable, does the airline have the right to a refund of the excise tax since they keep your money? The answer would seem to be yes , since when you ultimately travel agent sites apply your voucher to a new flight, they ring you up for the taxes again. But, I don t know enough about excise tax law to say for sure.
@Dang It happens to me several times when I redeposit an Aeroplan award ticket, all the taxes are reimbursed by Aeroplan on the spot. The same logic apply when I change the itinerary travel agent sites of my award tickets, Aeroplan reimbursed the taxes on the old ticket travel agent sites and collect the new applicable taxes on the replacement ticket.
There is a big difference, though if you re talking about Aeroplan, I assume you mean Air Canada, and as a foreign airline, they re subject to Canadian rules on collecting, remitting, and refunding taxes and fees, which may be very different from the DOT s rules. Some countries have rules that all taxes and fees must be refunded on a nonrefundable ticket.
@ MeanMeosh There is a big difference, though – if you're talking about Aeroplan, I assume you mean Air Canada, and as a foreign airline, they're subject to Canadian travel agent sites rules on collecting, remitting, and refunding taxes and fees, which may be very different from the DOT's rules. Some countries have rules that all taxes and fees must be refunded travel agent sites on a nonrefundable ticket.
In regards to a non-refundable ticket, I purchased a ticket from US Airways at $ 401.40 ($ 353.48 fare plus taxes of $ 47.92). Something came up and I need to cancel travel agent sites that reservation and make another reservation at $ 620.40 ($ 557.20 fare and taxes of $ 63.20). My credit card will be charged $ 369.00 $ 620.40 $ 401.40 = $ 219.00 + $ 150.00 (reissue fee or change fee) for the new reservation.
It is my guess that when I canceled my non-refundable ticket reservation, US Airways removed the $ 47.92 from their Fed tax report or issued a credit memo of $ 47.92 to their Federal Tax account. When the new reservation is purchased, the $ 63.20 is paid to the government or put on the report depending upon when these taxes are paid to the government (daily, weekly, monthly or quarterly).
Taxes are only due and owing once a trip is flown if the trip is not flown then the taxes are not due and owing. . . . the airline acts as agent and is probably claiming that they paid the taxes already I would like them to offer proof that they do so in the particular cases next the government becomes a defendant as well for refusing travel agent sites to refund the tax.
This doesn t actually surprise me. After all, if the airline keeps your money, they would be required to pay tax on that money. The fact that some airlines are kind enough to refund the taxes when they don t have to makes them stand out from the crowd, and might encourage me to take my very occasional flights to them if they serve my area.
Sadly, I have to agree with the airlines and government on this one. The ticket was purchased and is non-refundable. It does not matter if you used the ticket or not. This is the same as buying a ticket for a movie, concert, Vegas show, or any other service or entertainment where taxes are collected. You might not even go to the show, but you bought a non-refundable ticket and paid the service fees and taxes on that pu