Title 26 — Internal Revenue CodeRelease 119-73not60
§6718 Failure to Display Tax Registration on Vessels
Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 68— ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES › Subchapter B— Assessable Penalties › Part I— GENERAL PROVISIONS › § 6718
Summary
If a vessel operator does not show proof of registration, they must pay $500 for each time. Only one penalty can be charged for a vessel in any calendar month. Each new penalty rises by $500 for every earlier penalty against that person (or a related person or predecessor). No penalty if the failure was due to reasonable cause.
Full Legal Text
Title 26, §6718
Internal Revenue Code — Source: USLM XML via OLRC
(a)Every operator of a vessel who fails to display proof of registration pursuant to section 4101(a)(3) shall pay a penalty of $500 for each such failure. With respect to any vessel, only one penalty shall be imposed by this section during any calendar month.
(b)In determining the penalty under subsection (a) on any person, subsection (a) shall be applied by increasing the amount in subsection (a) by the product of such amount and the aggregate number of penalties (if any) imposed with respect to prior months by this section on such person (or a related person or any predecessor of such person or related person).
(c)No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2004—Subsec. (a). Pub. L. 108–357, § 862(b), substituted “section 4101(a)(3)” for “section 4101(a)(2)”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2004 AmendmentAmendment by section 862(b) of Pub. L. 108–357 effective Jan. 1, 2005, see section 862(c) of Pub. L. 108–357, set out as a note under section 4101 of this title.
Effective Date
Pub. L. 108–357, title VIII, § 861(c)(2), Oct. 22, 2004, 118 Stat. 1619, provided that: “The
Amendments
made by subsection (b) [enacting this section] shall apply to penalties imposed after December 31, 2004.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 6718
Title 26 — Internal Revenue Code
Last Updated
Apr 5, 2026
Release point: 119-73not60