---
kind: "section"
citation: "26 U.S.C. § 6718"
title: "26"
title_heading: "Internal Revenue Code"
number: "6718"
heading: "Failure to display tax registration on vessels"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6718"
units:
  - "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. Failure to display tax registration on vessels

- (a) **Failure to display registration—** Every operator of a vessel who fails to display proof of registration pursuant to [section 4101(a)(3)](/usc/26/4101.md?p=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) **Multiple violations—** In determining the penalty under [subsection (a)](#a) on any [person](/usc/26/7701.md?p=a-1), [subsection (a)](#a) shall be applied by increasing the amount in [subsection (a)](#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](/usc/26/7701.md?p=a-1) (or a [related](/usc/26/7701.md?p=a-51-I-vi) [person](/usc/26/7701.md?p=a-1) or any predecessor of such [person](/usc/26/7701.md?p=a-1) or [related](/usc/26/7701.md?p=a-51-I-vi) [person](/usc/26/7701.md?p=a-1)).
- (c) **Reasonable cause exception—** 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.

## Source credit

(Added and amended Pub. L. 108–357, title VIII, §§ 861(b)(1), 862(b), Oct. 22, 2004, 118 Stat. 1618, 1619.)

## Notes

### 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 Amendment

Amendment 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.”