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IRS to Airlines: Keep Your Bag Fees, We Won’t Tax Them

January 29, 2010 | Posted in: Airline News

irs airlines bag fees

Big news for the airlines: the Internal Revenue Service says bag fees collected by U.S. carriers are not taxable.

That’s big news and great news since (per BusinessWeek) bag fees could add up to as much as $1.78 billion in badly needed revenue for the airlines this year.

In case you were wondering, the airlines do pay a sizeable amount of taxes in general: in 2009, their federal taxes and fees for airports, regulators and security added up to $16.6 billion.

Do you ever get such good news from the IRS? Wish I did…

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