Airlines Might Owe Passengers a Refund

By Omar Villafranca
|  Wednesday, Jul 27, 2011  |  Updated 11:53 PM CDT
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The IRS says airlines could owe travelers a refund on taxes for flights flying during the shutdown of the Federal Aviation Administration.

Omar Villafranca, NBCDFW.com

The IRS says airlines could owe travelers a refund on taxes for flights flying during the shutdown of the Federal Aviation Administration.

Not all airlines hand out peanuts on a flight, but many of them might be handing back refunds.

Last weekend, airlines stopped charging certain federal airline ticket taxes when Congress failed to reauthorize a bill to fund the Federal Aviation Administration.

The taxes were charged on domestic and foreign tickets and included cargo and excise taxes.

But if you bought a ticket, paid those taxes and traveled this week, the Internal Revenue Service says the airlines could owe you a tax refund.

On a $300 domestic ticket, the refund could be around $30. A more expensive ticket means more of a refund.

But the refund process is causing confusion.

The IRS is telling passengers to call their airline for the refund.

Dallas-based Southwest Airlines is telling passengers to call the IRS because the government already received the tax money. And Fort Worth-based American Airlines wants more direction from the IRS before moving forward.

Travel experts are advising passengers to keep all their airplane ticket receipts until more details come out.

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