[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR49.4261-4]

[Page 252-253]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 49_FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
                   Subpart D_Transportation of Persons
 
Sec. 49.4261-4  Payments made within the United States; evidence of 
nontaxability.

    (a) Presumption of taxability. The tax imposed by section 4261(a) 
shall apply to any amount paid within the United States for the 
transportation of any person, unless the taxpayer establishes in 
accordance with the provisions of this section that at the time of 
payment the transportation is not transportation in respect of which tax 
is imposed by section 4261(a) (see section 4264(d)).
    (b) Through tickets. In the case of transportation which is wholly 
or in part not taxable transportation, the issuance of one ticket 
(commonly known as a ``through ticket'') covering such transportation 
will be sufficient to establish that the amount paid for such 
transportation is wholly or in part not subject to tax. Thus, if A 
purchases a through ticket in the United States for transportation by 
air which begins before November 16, 1962, from Chicago to Edmonton, 
Canada, with a

[[Page 253]]

stopover in Minneapolis, no further evidence will be required to 
establish that no tax applies with respect to the amount paid for the 
portion of transportation between Minneapolis and Edmonton. A similar 
result will be reached if a through ticket is purchased for the same air 
transportation which begins after November 15, 1962, and the trip is not 
``uninterrupted international air transportation'' within the meaning of 
section 4262(c) (3) and paragraph (c) of Sec. 49.4262(c)-1. See 
paragraph (d) of this section for the information to be inscribed on all 
tickets issued for uninterrupted international air transportation.
    (c) Separate tickets. Where a separate ticket or order is issued for 
taxable transportation as defined in section 4262 (a) (1) (referred to 
in this subpart as the ``domestic ticket or order''), but the domestic 
ticket or order is to be used in conjunction with a ticket or order for 
additional transportation (referred to in this subpart as the 
``international ticket or order'') which changes the tax consequences, 
unless the domestic ticket or order and the international ticket or 
order are purchased from a single agency or carrier at the same time, 
the person making payment for the domestic ticket or order shall at the 
time of payment exhibit the international ticket or order to the agency 
or carrier receiving such payment. The agency or carrier which receives 
the payment for the domestic ticket or order shall inscribe the tickets 
or orders for the entire journey in the following manner:
    (1) The international ticket or order shall be inscribed or stamped 
with an appropriate legend (for example, ``Cannot be reused to obtain 
any tax exemption on a domestic ticket or order'') to show that a 
domestic ticket or order has been purchased wholly or partially tax free 
for use in conjunction therewith.
    (2) The domestic ticket or order shall be inscribed to show (i) the 
identity of the agency or carrier which received payment therefor 
(unless otherwise shown on the ticket or order), (ii) the origin and 
destination of the additional transportation, (iii) the identify of the 
carrier furnishing the additional transportation, and (iv) the serial 
number of the ticket or order covering such additional transportation. 
If the domestic ticket or order is not large enough to accommodate the 
prescribed inscription, a statement setting forth the required 
information shall be attached to such ticket or order.
    (d) Tickets issued for uninterrupted international air 
transportation. All tickets issued for ``uninterrupted international air 
transportation'' within the meaning of section 4262(c) (3) and paragraph 
(c) of Sec. 49.4262(c)-1, whether through tickets or separate tickets, 
must have inscribed thereon, in addition to the other information 
required in the regulations in this subpart, sufficient information from 
which may be ascertained the scheduled arrival and departure time at 
each stopover to which the six-hour scheduled interval requirement of 
section 4262(c)(3) applies. It will be sufficient, for example, if the 
airline ticket or tickets show the trip number and the date and time of 
departure of the aircraft from each such stopover point, provided the 
published airline schedules show the scheduled time of arrival at each 
such stopover point.

[T.D. 6430, 24 FR 9665, Dec. 3, 1959, as amended by T.D. 6618, 27 FR 
11223, Nov. 14, 1962]