SECTION 2. BACKGROUND

Before July 23, 2011, the Internal Revenue Code (Code) imposed excise taxes on amounts paid for taxable air transportation of persons (§ 4261) and property (§ 4271). In addition, the Code imposed excise taxes on certain removals, entries, and sales of aviation gasoline and aviation fuel (§ 4081). On July 23, 2011, the taxes imposed by §§ 4261 and 4271 expired under the terms of the Airport and Airway Extension Act of 2011, Part III (Pub. L. 112–21) and did not apply to amounts paid on and after that date. Air transportation providers were not authorized to collect these taxes for air transportation services purchased on and after July 23, 2011. Also under the Airport and Airway Extension Act of 2011, Part III, the tax rates for aviation gasoline and aviation fuel taxes were reduced beginning on July 23, 2011.

On August 5, 2011, the President signed the Extension Act, Part IV, into law, reinstating the taxes imposed by §§ 4261 and 4271, and the pre-July 23, 2011, tax rates for aviation gasoline and aviation fuel as if they had never expired.

In an August 5, 2011, statement made pursuant to its authority under § 7805(a) (relating to prescribing rules as may be necessary by reason of any alteration of internal revenue laws), the IRS announced that it intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected on or after July 23, 2011, and before August 8, 2011. The IRS also announced that persons who purchased airline tickets before July 23, 2011, and traveled on or after July 23, 2011, and before the reinstatement of the taxes, are not entitled

to a refund of the air transportation taxes imposed by § 4261.