Rev. Rul. 55-409

A resident of the United States drives his automobile from a point in the United States to Whitehorse, Yukon Territory, Canada. On the return trip, in order to avoid traveling over the same route, he purchases a ticket in Canada for transportation via railroad and steamship from Whitehorse to Vancouver, British Columbia, Canada. This journey crosses a portion of Alaska. Held, since the payment made in Canada is for a trip which begins and ends outside the United States, the tax on the transportation of persons, imposed by section 4261 of the Internal Revenue Code of 1954 (section 3469 of the 1939 Code), is not applicable to such payment even though the person purchasing such transportation is a resident of the United States