IRS: No tax refunds for airline passengers who flew during FAA shutdown

Chris Moody

Airline passengers who flew during the  FAA shutdown will not receive reimbursements even if they paid extra tax fees in the two weeks the federal government wasn't able to collect flight taxes.

Several airlines increased ticket prices and pocketed the profits during that period.

The IRS made the announcement Friday after President Obama ended the shutdown by signing a short-term extension of funding to the agency. The additional funding comes via  a deal negotiated between the parties earlier this week.

"Passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today's legislation are not entitled to a refund of the airline ticket excise tax," an IRS statement read, adding that it would not retroactively charge passengers and airlines who did not pay the tax during the shutdown.

Federal funding for the FAA expired on July 23 after Congress failed to reach an agreement to extend the agency's budget. Thousands of FAA employees were furloughed as a result, hundreds of construction projects were put on hold, and several essential employees worked without pay.

The stop-gap measure will keep the FAA funded for just six weeks, giving lawmakers only days to find another agreement when they return from their August recess after Labor Day.