Ship Taxes

You must file Ship Passenger Tax (IRS No. 29) if you provide: • Transportation of passengers by water (ships, vessels, cruises, or ferries). • Passenger voyages that meet IRS taxable criteria. The tax is paid by the seller/service provider, not the buyer.

Before filing, prepare: • Business name, address, and EIN. • Records of voyages during the quarter. • Passenger counts for each taxable voyage. • Dates of voyages and ticket sales.

When filing online, provide the following: Tax Date – date of the voyage or ticket sale. Total No. of Persons – total passengers subject to tax. Tax Amount ($) – system will auto-calculate using the formula: The tax is calculated automatically once you enter the number of passengers.

Exemptions may apply to non-commercial passenger transport or government service. If tax was collected on an exempt trip, a refund/credit may be requested (repay passenger or obtain consent before claiming). Use Form 720-X for adjustments to prior filings.

Confirm passenger counts for each voyage. Ensure exempt voyages are excluded. Verify that tax amounts match the $3 per passenger formula. Submit Form 720 electronically after review.

Pay Ship Passenger Tax through the integrated payment gateway. Save filings in progress and return later if needed. Keep voyage logs, ticket records, and filed returns for at least three years. Access past filings and payment history through your account dashboard.

Use the help icon for quick field explanations. Refer to IRS Pub. 510 for detailed passenger transportation rules. Contact a tax professional for complex voyage scenarios or exemptions.