# 26 U.S.C. § 4263: Special rules Source: OLRC release point 119-134 . Cite pinpoints as 26 U.S.C. § 4263(a)(1). ## § 4263(a) Payments made outside the United States for prepaid orders If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. ## § 4263(b) Tax deducted upon refunds Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary the amount of any such tax remaining uncollected. ## § 4263(c) Payment of tax Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary, to the extent that such tax is not collected under any other provision of this subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States. ## § 4263(d) Application of tax The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. ## § 4263(e) Round trips In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. ## § 4263(f) Transportation outside the northern portion of the Western Hemisphere In applying this subchapter to transportation any part of which is outside the northern portion of the Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term “northern portion of the Western Hemisphere” means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America. ## Regulations - [Treas. Reg. § 49.4263-1](/26/reg/49.4263-1.md): Duty to collect the tax; payments made outside the United States. (interprets § 4263) - [Treas. Reg. § 49.4263-2](/26/reg/49.4263-2.md): Duty to collect the tax in the case of certain refunds. (interprets § 4263) - [Treas. Reg. § 49.4263-3](/26/reg/49.4263-3.md): Special rule for the payment of tax. (interprets § 4263) - [Treas. Reg. § 49.4263-4](/26/reg/49.4263-4.md): Cross reference. (interprets § 4263) - [Treas. Reg. § 49.4263-5](/26/reg/49.4263-5.md): Round trips. (interprets § 4263) - [Treas. Reg. § 49.4263-6](/26/reg/49.4263-6.md): Transportation outside the northern portion of the Western Hemisphere. (interprets § 4263) ## Forms named in the regulations - [Form 720](https://www.irs.gov/pub/irs-pdf/f720.pdf) ## Final rules - [86 FR 4990](https://www.federalregister.gov/documents/2021/01/19/2021-00706/excise-taxes-transportation-of-persons-by-air-transportation-of-property-by-air-aircraft-management) (2021): Excise Taxes; Transportation of Persons by Air; Transportation of Property by Air; Aircraft Management Services - [84 FR 9231](https://www.federalregister.gov/documents/2019/03/14/2019-03474/eliminating-unnecessary-tax-regulations) (2019): Eliminating Unnecessary Tax Regulations ## Leading cases - [Lake Mead Air v. United States, 991 F. Supp. 1209 (D. Nev. 1997)](https://www.courtlistener.com/opinion/1806005/lake-mead-air-inc-v-united-states/) - [Flight Options v. United States (6th Cir. 2026)](https://www.courtlistener.com/opinion/10865549/flight-options-llc-v-united-states/) - [Schuman Aviation v. United States, 816 F. Supp. 2d 941 (D. Haw. 2011)](https://www.courtlistener.com/opinion/2115476/schuman-aviation-company-ltd-v-united-states/) ## Connections Cites: § 4261 Imposition of tax Cited by: § 4261 Imposition of tax; § 4291 Cases where persons receiving payment must collect tax ## Prior provisions - A prior section 4263, acts Aug. 16, 1954, ch. 736, 68A Stat. 506, § 4263, formerly § 4262; renumbered § 4263 and amended July 25, 1956, ch. 725, § 2, 70 Stat. 644; Aug. 7, 1956, ch. 1024, § 1, 70 Stat. 1077; June 29, 1957, Pub. L. 85–74, 71 Stat. 243; Sept. 2, 1958, Pub. L. 85–859, title I, § 134, 72 Stat. 1292; June 28, 1962, Pub. L. 87–508, § 5(b), 76 Stat. 117, provided for exemptions, subsecs. (a) to (d) relating to commutation travel, etc., certain organizations; members of the Armed Forces, and small aircraft on nonestablished lines, respectively, prior to repeal by Pub. L. 91–258, title II, § 205(c)(1), May 21, 1970, 84 Stat. 242, effective on July 1, 1970, as provided in section 211(a) of Pub. L. 91–258, set out as a note under section 4041 of this title. ## Amendments - 1956-07-25: [Act July 25, 1956, ch. 725](/26/act/1956-ch725.md), 70 Stat. 645 - 1962-06-28: [Pub. L. 87-508](/26/act/87-508.md), 76 Stat. 117 - 1970-05-21: [Pub. L. 91-258](/26/act/91-258.md), 84 Stat. 242 - 1976-10-04: [Pub. L. 94-455](/26/act/94-455.md), 90 Stat. 1834 - 1997-08-05: [Pub. L. 105-34](/26/act/105-34.md), 111 Stat. 932