Ship Passenger Tax Filing Online for Form 720 Excise Tax
The Ship Passenger Tax is a federal Form 720 excise tax applied to passenger transportation by water. If your business operates cruises, ferries, or commercial voyages, you must report and pay this tax quarterly under IRS No. 29. Simple720Tax makes the process seamless - simply enter the passenger counts for each voyage, and the system automatically applies the $3-per-passenger tax rule.
With automated calculations, accurate excise tax mapping, and secure e-filing, Simple720Tax ensures your ship passenger tax filing is IRS-compliant, fast, and error-free.
Accurate Ship Passenger Tax Reporting with Simple720Tax
Accurately reporting passenger counts is essential for correct Form 720 excise tax filing. Simple720Tax automatically applies the IRS-approved formula, helps prevent underreporting, and reduces the risk of costly penalties or audits.
Check If You Need to File
You must file the Ship Passenger Tax (IRS No. 29) if your business provides:
- ✓Passenger transportation by water on any commercial vessel (ships, cruises, ferries, sightseeing vessels, etc.)
- ✓Commercial voyages that meet IRS taxable criteria
- ✓Passenger trips where the excise tax is based on the number of passengers
- ✓Paid voyages where your business is the operator or seller of the service
- ✓Important: This is not the same as "tax on shipping goods." The Ship Passenger Tax applies only to passenger transportation by water — not to package shipping or logistics.
Gather Your Information Before Filing
Have the following details ready:
- ✓Business name, address, and EIN
- ✓Voyage records for the quarter
- ✓Passenger counts for each taxable trip
- ✓Dates of ticket sales or voyage departures
- ✓Previous Form 720 filings for adjustments
Enter Your Voyage & Passenger Details
When completing the Ship Passenger Tax on Simple720Tax, provide:
Tax Date
The date of the voyage or ticket sale.
Total Passengers
The number of passengers subject to the tax.
Tax Amount ($3 per passenger)
The system automatically calculates the Form 720 excise tax for IRS No. 29.
Voyage and Trip Details
Trip dates, routes, and any exempt voyages.
Claim Exemptions or Credits (If Applicable)
Some voyages may be exempt, including:
- ✓Non-commercial or charity voyages
- ✓Government-related passenger transport
- ✓Voyages not meeting IRS taxable thresholds
- ✓If tax was mistakenly collected or paid:
- ✓Refunds may be available
- ✓Written consent from the passenger may be required
- ✓Adjustments can be filed using Form 720-X
- ✓Simple720Tax guides you through exemption logic step-by-step.
Review Before Submitting
Before you file:
- ✓Confirm all passenger counts
- ✓Exclude non-taxable or exempt voyages
- ✓Ensure tax amounts match the $3-per-passenger rule
- ✓Review all entries for accuracy
- ✓Submit your Form 720 online through Simple720Tax once everything is verified.
Pay & Save Your Records
With Simple720Tax, you can:
- ✓Pay securely through integrated payment options
- ✓Save filings in progress and resume anytime
- ✓Download IRS-accepted returns instantly
- ✓Keep voyage logs, receipts, and filings for at least three years
- ✓Access past returns anytime through your dashboard
Need Help Filing the Ship Passenger Excise Tax?
Get support with filing:
- ✓Use the built-in help icons for quick guidance
- ✓Consult IRS Pub. 510 for detailed passenger transport rules
- ✓Contact a tax professional for complex voyage scenarios
Frequently Asked Questions
Answers to our most frequently asked filing questions