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CCH Tax News Headlines - September 7th, 8th, & 9th, 2011

CCH Tax News Headlines - September 7th, 8th, & 9th, 2011 Federal Headlines:

9/9/2011 - _Guidance Provided on Retroactive Extension of Aviation-Related Excise Taxes (Notice 2011-69)_
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9/9/2011 - _Anti-Injunction Act Barred Challenges to Mandatory Coverage Provisions of Patient Protection and Affordable Care Act (Liberty University, Inc. v. Geithner, CA-4)_
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9/8/2011 - _Final Regulations Implement Redesigned Form 990 (T.D. 9549)_
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9/8/2011 - _As Extension Filing Deadlines Approach, New Round of Outreach to Small Businesses and Practitioners Planned About the Small Business Health Care Tax Credit (IR-2011-90)_
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9/7/2011 - _Treasury/IRS Issue 2011-2012 Priority Guidance Plan; 2010-2011 Year-End Plan Also Released (Priority Guidance Plan)_
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9/7/2011 - _IRS Releases Specifications for Registered Tax Return Preparer Test (IR-2011-89)_
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State Headlines:

9/9/2011 - _All States --Sales and Use Tax: CRIC to Issue Interpretations on Pencil Leads and Pen Refills and 120-Day Rule_

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9/9/2011 - _Texas --Sales and Use Tax: Sales Tax Holiday Dates Will Change in 2012_
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9/8/2011 - _New Jersey - Corporate Income Tax: Whirlpool Decision Discussed_
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9/8/2011 - _New York - Multiple Taxes: Certain Filing, Payment Deadlines Postponed Due to Hurricane Irene_
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9/8/2011 - _North Carolina - Multiple Taxes: Tax Relief Announced for Hurricane Irene Victims_
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9/7/2011 - _California - Personal Income Tax: 2011 Tax Rate Schedules, Filing Thresholds, Other Amounts Released_
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9/7/2011 - _Minnesota - Property Tax: Guidance on Market Value Exclusion on _
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Homestead Property for Disabled Veterans and Others Updated 9/7/2011 - _Wisconsin - Sales and Use Tax: Multilevel Marketing Companies, Vehicle Dealers' Measure of Use Tax, and More Discussed_
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Reply to
TaxService
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BEGIN QUOTE

The guidance provides that those who purchased air transportation services, including frequent flyer miles for personal use, will not be taxed on services (or frequent flyer miles) paid for after July 22,

2011, and before 12:01 a.m. on August 8, 2011, when the airlines resumed collecting the taxes. The guidance states that the reason for providing the relief is to avoid the administrative burden of collecting excise taxes on past air travel purchases. The relief does not apply to any amount paid for the right to provide mileage awards or other free or reduced-rate air transportation under Code Sec. 4261(e)(3) during the period of the lapse. Thus, those who purchased such rights during that period must pay the Code Sec. 4261 tax.

END QUOTE

Reply to
removeps-groups

No, the unquoted (by me) "following paragraph" states there will be NO effort to collect taxes for that period.

By the way, most airlines did NOT reduce their ticket prices to make up for the tax being temporarily suspended. Theoretically, one could get a refund from one's airline for the overpayment. Good luck with that.

Reply to
Bill Brown

"The relief does not apply to any amount paid for the right to provide mileage awards or other free or reduced-rate air transportation under Code Sec.

4261(e)(3) during the period of the lapse. Thus, those who purchased such rights during that period must pay the Code Sec. 4261 tax."

I thought the airlines increased their ticket prices in the amount of the tax, so the total cost to the consumer remained the same.

Reply to
Pico Rico

That was what Delta did, with the claim that it was a reserve against taxes. Then they kept it.

Seth

Reply to
Seth

But the paragraph contains the following line "The relief does not apply to any amount paid for the right to provide mileage awards or other free or reduced-rate air transportation under Code Sec. 4261(e) (3) during the period of the lapse". Thus for these situations they will collect taxes retroactively. 4261(e)(3) appears to be the section saying that there will be excise tax on the full price of frequent flier miles, which I gathered from

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6838,00.html, butthe paragraph also says "including frequent flyer miles for personaluse, will not be taxed on services (or frequent flyer miles) paid forafter ... and before ...". This is quite confusing to me.

With sufficient number of customers complaining, I could be optimistic.

Reply to
removeps-groups

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