IRS Issues FAQ on Aviation Excise Tax Holiday

May 15, 2020

The IRS has issued an FAQ offering some guidance on the aviation excise tax holiday under the CARES Act. This includes the aviation fuel tax and the air transportation tax. With respect to the aviation fuel tax, the FAQ confirms that the holiday only applies to aviation fuel used in “commercial aviation” which is aviation fuel removed into the fuel tank of an aircraft. The ultimate purchaser can claim a refund of tax paid during the excise tax holiday or can waive its right to make such a claim which would then allow the registered ultimate vendor to claim the refund. There are no changes to the actual tax rates, the requirement to make semi-monthly deposits or the filing of tax returns. Additionally, the excise tax holiday only applies to kerosene actually used in commercial between March 28, 2020 and December 31, 2020; any kerosene purchased during this time that is not placed into the fuel tank of an aircraft is subject to the tax. The full list of FAQs and responses can be found at: