Papillon Airways, Inc. v. United States

OPINION

BASKIR, Judge.

Plaintiff, Papillon Arways (Papillon), seeks a refund of $900 it paid in Federal Ar Transportation Excise Tax pursuant to 26 U.S.C. § 4261, and to abate the remaining $7,741,569 the Internal Revenue Service (IRS) asserts it owes. It claims exemption from the excise tax as an air taxi under 26 U.S.C. § 4281.

Pursuant to the statute, Papillon is ineligible for the exemption if the carrier operated on an “established line” during the disputed period. The parties filed cross-motions for summary judgment pursuant to Rule 56 of *156the Rules of the United States Court of Federal…