On Aug. 4, 2011, Congress announced that a deal has been reached for the 21st extension of a FAA Authorization through mid-September 2011. The Senate approved the bill that was previously passed by the House of Representatives on Aug. 5, 2011.
Accordingly, the federal excise tax is again applicable to amounts paid for commercial transportation by air. Taxes paid prior to July 23, 2011 for travel between July 23 and the date of enactment of today’s legislation, will not be entitled to a refund. Also, the Department of Treasury has indicated they may provide relief for passengers and air carriers with respect to taxes that were not paid or collected because of the lapse. No final determination has been made by the Department of Treasury as they are still reviewing the effects of the legislation and will issue future guidance.