Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has released the inflation-adjusted air transportation tax rates for tax years beginning in 2010. For calendar year 2010, the
Code Sec. 4261(b) excise tax on the amount paid for each domestic flight segment of taxable transportation by air increases to $3.70, up from $3.60 in 2009. The
Code Sec. 4261(c) excise tax on any amount paid for transportation of persons by air will remain at $16.10 for international travel beginning or ending in the United States. For a domestic flight segment beginning or ending in Alaska or Hawaii, the Code Sec. 4261(c) tax applies to departures at the rate of $8.10, up from $8.00 in 2009.

  The vehicle for announcing the other 2010 inflation adjustments, Rev. Proc. 2009-50, which was issued on October 15, 2009, did not include 2010 adjusted tax rates for the air transportation taxes imposed by Code Sec. 4261(b) and
(c). This is because the Fiscal Year 2010 Federal Aviation Administration Extension Act (P.L. 111-69) extended these taxes only through December 31, 2009. However, on December 16, President Obama signed the Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II (P.L. 111-116), which extended the authority to collect the air transportation excise taxes through March 31, 2010.

IR-2009-120, ETR ¶66,888

Other References:

 
Code Sec. 4261

  CCH Reference - ETR ¶19,305.014

  CCH Reference - ETR ¶19,305.02

  CCH Reference - ETR ¶19,305.495

  Tax Research Consultant

  CCH Reference - TRC EXCISE: 9,102.05
CCH Reference - TRC EXCISE: 9,104.05