IRS won't collect taxes on airline baggage fees

01/29/2010 | CNNMoney · Bloomberg

The IRS has ruled that airline baggage fees are not subject to federal taxes, marking a big win for an industry that is increasingly reliant on ancillary fees to offset declining ticket sales. The IRS made its finding in response to an inquiry by an unidentified airline. Analysts said the ruling was good for the airline industry, but the Air Transport Association warned that efforts on Capitol Hill could still force the IRS to reverse its position.

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CNNMoney · Bloomberg

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