Tax on Amount Paid for Transportation of Property by Air(Section 4271 of the Internal Revenue Code). File Form 1363 with the carrier to suspend the liability for the 6.25% tax on transportation of property by air. The tax is imposed on the amount paid for the transportation of property by air if the transportation begins and ends in the United States. However, if you export property (including shipment to a U.S. possession) by continuous movement, the amount you pay for transportation of property by air is exempt from this tax. You may use a separate Form 1363 in connection with each payment otherwise subject to tax or, with the permission of the district director, you may use one Form 1363 as a blanket exemption certificate. The air carrier should keep the original blanket certificate with all records showing payment of the transportation charges. Each person must keep the blanket certificate for at least 3 years after the last day of the month the final shipment covered by the certificate was made from the point of origin. Shipping and payment records for individual exemption items should be kept at least 3 years after the last day of the month the shipment was made from the point of origin. |