US baggage fees not taxable; fuel surcharges taxable

US Department of the Treasury Internal Revenue Service (IRS) ruled that amounts paid for airline baggage services (eg baggage fees) are not taxable, with food, alcohol and headsets purchased in flight also not taxable. IRS added that access to premium airport lounges on both an annual and daily basis is not taxable. Customer upgrades during check-ins at automated kiosks, purchases of frequent-flyer/bonus miles and fuel surcharges on airline tickets, are all taxable. [more - IRS Report]