Seal of the Internal Revenue Service

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The IRS is finally announcing guidelines for tax refunds related to the expiration of federal excise taxes on airline tickets. This comes just days after JetBlue announced a plan to offer refunds.

Airline Tax refunds & the IRS

The IRS is asking the airlines to issue the refunds since they have all the details on the passenger’s itinerary, fees paid, and credit information to issue a refund.

If you can’t get a refund from your airline, passengers can request one from the IRS. You’ll have to submit proof of your travel dates and fees paid, but the guidelines for requesting a refund this way are still in development by the IRS. So, it looks like your best bet is to request the refund from the airline or you may be waiting awhile for the IRS.

The expiration of the excise tax means you’ll receive more than 7.5% of the ticket price in the form of a refund. The 7.5% tax is gone, the segment tax of $3.70 per person per segment, international tax of $16.30 per person for flights that begin or end in the U.S., $8.20 charge for person for a flight that begins or ends in Hawaii or Alaska, and the 6.25% tax for transporting property by air is also eliminated until this tax issue is resolved.

While many taxes are gone, most passengers are not seeing lower fares even on international flights. Many of the airlines are not passing the savings onto the consumer.

At this time, most of the airlines have not issued statements on their refund policies or procedures. For now, you can wait until a plan is set or call Customer Service.