---
kind: "section"
citation: "26 U.S.C. § 6725"
title: "26"
title_heading: "Internal Revenue Code"
number: "6725"
heading: "Failure to report information under section 4101"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/6725"
units:
  - "Subtitle F — Procedure and Administration"
  - "Chapter 68 — Additions to the Tax, Additional Amounts, and Assessable Penalties"
  - "Subchapter B — Assessable Penalties"
  - "Part II — Failure to Comply with Certain Information Reporting Requirements"
---

# §6725. Failure to report information under section 4101

- (a) **In general—** In the case of each failure described in [subsection (b)](#b) by any [person](/usc/26/7701.md?p=a-1) with respect to a vessel or facility, such [person](/usc/26/7701.md?p=a-1) shall pay a penalty of $10,000 in addition to the tax (if any).
- (b) **Failures subject to penalty—** For purposes of [subsection (a)](#a), the failures described in this subsection are—
  - (1) any failure to make a report under [section 4101(d)](/usc/26/4101.md?p=d) on or before the date prescribed therefor, and
  - (2) any failure to include all of the information required to be shown on such report or the inclusion of incorrect information.
- (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 Pub. L. 108–357, title VIII, § 863(d)(1), Oct. 22, 2004, 118 Stat. 1620.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to penalties imposed after Dec. 31, 2004, see section 863(e) of Pub. L. 108–357, set out as a note under section 6719 of this title.