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No tax holiday during FAA shutdown, IRS says

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The Internal Revenue Service (IRS) has decided that travelers who flew during the recent partial shutdown of the Federal Aviation Administration (FAA) won’t get a tax refund, MarketWatch reported.

The FAA reauthorization bill that Congress passed last week included a retroactive collection of all airline ticket taxes from passengers regardless of when they flew, the IRS said.

However, the IRS does intend to “provide relief” for passengers and airlines on taxes that were not collected during the lapse, MarketWatch said.

The FAA was virtually shuttered on July 23 after its authority to regulate and collect certain excise taxes lapsed because of a Congressional spat over spending and labor rules.

Travelers who purchased their tickets before July 23 for travel during the shutdown had been entitled to a tax reimbursement before last week’s legislation.

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