[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(e)-1]

[Page 266-267]
 
                       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(e)-1  Round trips.

    (a) In general. For purposes of the regulations in this subpart, a 
round trip shall be considered to consist of two separate trips, i.e., 
one trip from the point of departure to the destination and a second 
trip in returning from the destination. A round trip includes certain 
journeys in which the same routing is not followed on the return trip 
from the destination to the point of departure as was taken on the going 
trip (sometimes referred to as ``circle trips''). In the case of a 
cruise or tour (i.e., transportation to no set destination but with one 
or more intermediate stops en route) the point farthest from the point 
of departure will

[[Page 267]]

be regarded as the destination for purposes of applying the term ``round 
trip''. If a cruise or tour ends at a point other than the one at which 
it began, the rules of ``open jaw'' transportation set forth in 
paragraph (b) of this section apply.
    (b) Open jaw transportation. Transportation which qualifies under 
this paragraph as ``open jaw'' transportation will be treated in the 
same manner as a round trip. For purposes of the regulations in this 
subpart, ``open jaw'' transportation means (1) transportation from the 
point of departure to a specified destination and return from the 
specified destination to a point other than the original point of 
departure, or (2) transportation from the point of departure to a 
specified destination and return from a point other than the specified 
destination to the original point of departure, provided that where the 
points of the open jaw are within the continental United States or the 
225-mile zone, the distance between the points of the open jaw does not 
exceed the distance of the shorter segment traveled. For example, a trip 
from New York to New Orleans via Panama would be considered as one trip 
from New York to Panama and separate trip from Panama to New Orleans, 
since the distance between the points of the open jaw (i.e., New York 
and New Orleans) is shorter than the distance between Panama and New 
Orleans (the shorter of the two segments traveled). Both trips would be 
nontaxable. On the other hand, transportation from New York to Miami via 
Bermuda does not qualify as ``open jaw'' transportation (since the 
points of the open jaw are in the United States and the distance between 
them is greater than the shorter segment traveled) and therefore would 
be considered a single trip from New York to Miami and would be taxable.