[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: 26CFR49.4264(c)-1]

[Page 265-266]
 
                       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. 49.4264(c)-1  Special rule for the payment of tax.

    (a) Rule--(1) In general. Except as provided in subparagraph (2) of 
this paragraph, when any tax imposed by section 4261 is not paid at the 
time payment for the transportation is made, then to the extent that 
such tax is not collected under any other provision of law, such tax 
shall be paid by the person paying for the transportation or by the 
person using the transportation. The provisions of section 4264(c) apply 
where the amount paid for transportation is (i) subject to tax at the 
time such payment is made, but no tax is paid at that time, or (ii) not 
subject to tax at the time such payment is made, but because of some 
subsequent event the payment becomes subject to tax. The payment of tax 
shall be made to the district director of internal revenue for the 
district in which the taxpayer resides, or to the person from whom the 
transportation was purchased, within 30 days after whichever of the 
following first occurs: (a) The rights to the transportation expire, or 
(b) the transportation becomes subject to tax. Such payment shall be 
accompanied with an explanation that it is being made in accordance with 
section 4264(c).
    (2) Transportation no longer qualifying as uninterrupted 
international air transportation. In the case of a payment for 
transportation beginning after November 15, 1962, which qualifies as 
``uninterrupted international air transportation'' within the meaning of 
section 4262(c)(3) and paragraph (c) of Sec. 49.4262(c)-1 on the date 
such payment was made and which because of some

[[Page 266]]

subsequent event ceases to be uninterrupted international air 
transportation, to the extent that the tax due is not collected under 
any other provision of law, such tax shall be paid by the person paying 
for the transportation or by the person using the transportation. The 
payment of the tax shall be made to the air carrier which provides the 
next continuing portion of the transportation following the occurrence 
of the event which caused the transportation to cease to be 
uninterrupted international air transportation and such carrier shall 
collect the tax at the time the flight is rescheduled or before 
furnishing the continuing transportation to the passenger, whichever is 
earlier, unless the carrier has evidence, in writing, that the tax has 
already been paid to (i) a district director, or (ii) the person to whom 
the payment for the international air transportation was originally 
made, or (iii) any person furnishing any portion of such transportation. 
The provisions of this subparagraph with respect to the responsibility 
of the continuing carrier to collect the tax due are applicable only if 
the passenger uses his original ticket or is issued a substitute 
therefor for the purpose of continuing his transportation. Such 
provisions are not applicable if the passenger purchases a new ticket to 
continue his transportation.
    (b) Relationship to other sections. Section 4264(c) and this section 
are not intended in any way to relieve the person receiving the payment 
for taxable transportation of persons from his duty under section 4291 
of collecting the tax at the time such payment is received by him. The 
provisions of section 4264(c) and this section also do not apply in any 
case where the tax is collected in the manner provided in section 4264 
(a) or (b) or in other provisions of law.
    (c) Illustrations. The provisions of this section may be illustrated 
by the following examples:

    Example (1). A purchases in New York a round-trip ticket for 
transportation between New York and London, England, with a stopover in 
Montreal, Canada. After arriving in Montreal A decides not to continue 
his trip to London and returns to New York. A is liable for tax with 
respect to the amount paid for his transportation from New York to 
Montreal and return. The amount paid for A's transportation became 
subject to tax at the time he began his return trip to New York, and 
within 30 days thereafter A must pay the tax to either the person from 
whom he purchased the ticket or his district director of internal 
revenue.
    Example (2). A purchases in Chicago a ticket for air transportation 
to begin after November 15, 1962, from Chicago to London with a stopover 
in New York. A is scheduled to arrive in New York at 4:30 p.m. and 
depart from New York on the international portion at 7:30 p.m. A arrives 
in New York on schedule but for his own convenience reschedules his 
departure on a flight departing at 11:00 p.m. Since A lengthened the 
interval between the end of the United States portion and the beginning 
of the international portion beyond the 6-hour limitation, that portion 
of his international air transportation between Chicago and New York 
became subject to tax. The carrier furnishing A's transportation from 
New York to London shall, before furnishing him with any transportation 
or at the time he reschedules the remaining portion of his trip, 
whichever is earlier, collect the tax due on the Chicago to New York 
portion from A unless the carrier has written evidence that such tax has 
been paid to (i) a district director of internal revenue, or (ii) the 
person to whom the payment for the international air transportation was 
originally made, or (iii) any person furnishing any other portion of the 
international air transportation.


[T.D. 6430, 24 FR 9665, Dec. 3, 1959, as amended by T.D. 6618, 27 FR 
11226, Nov. 14, 1962]