For some time now, online travel agencies have offered customers rates on tickets and vacation packages that many consumers erroneously believe include all applicable tax owed. In reality, online travel agencies like Travelocity, Expedia and Orbitz have offered marked up rates while failing to pay the full amount of tax due on tickets sold online. When a ticket is sold online at an increased rate, instead of paying all the taxes due, some travel agencies have paid only a portion of tax owed while pocketing the rest. This is tax fraud, plain and simple. To date, the Internal Revenue Service has not taken action against online travel agencies engaging in this kind of practice. Some states have initiated administrative procedures against online travel agencies with only minimal success.At the Bird Law Group, our lawyers have been successful in bringing civil actions against online travel agencies in order to recover taxes owed, as well as penalties and interest on the amounts in question.
If your municipality or state is owed money by an online travel agency, please call us at 888-392-4312 to learn how we can help you. We assist municipalities and states throughout the U.S.
Determining When Online Travel Taxes Are Owed
In bringing a case against an online travel agency, we do not work with the IRS. Rather, we review a company’s Securities and Exchange Commission (SEC) filings in order to determine if a company has a fund in place to pay taxes owed. If they do, this in essence goes to an issue of foreseeability.
Unless a company believed it owed taxes in the first place, it wouldn’t set aside funds for just such a purpose. Next, we review company financials in order to identify underpaid local and state taxes. If necessary, we work with actuaries and forensic accountants.
Online Travel Tax — Recovering Taxes For Your City Or State
In today’s economy, cities and states are struggling to maintain tight budgets while paying for infrastructure, schools, health care and needed services. When online travel agencies don’t pay their share of taxes, this places an unwelcome additional strain on cities and states. Our attorneys understand the issues involved in online travel taxes and how to recover back taxes for our clients.
Atlanta, Georgia, Online Travel Tax Attorneys
If you would like more information about online travel taxes, tax recovery charges and the options available for collecting what is owed to you, please call us at 888-392-4312, or email our team today to schedule an appointment with an attorney.