118 STAT. 1619 PUBLIC LAW 108–357—OCT. 22, 2004 (1) IN GENERAL.—Part I of subchapter B of chapter 68 (relating to assessable penalties), as amended by this Act, is amended by inserting after section 6717 the following new section: ‘‘SEC. 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)(2) 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) 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) 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.’’. (2) CLERICAL AMENDMENT.—The table of sections for part I of subchapter B of chapter 68, as amended by this Act, is amended by inserting after the item relating to section 6717 the following new item: ‘‘Sec. 6718. Failure to display tax registration on vessels.’’. (c) EFFECTIVE DATES.— (1) SUBSECTION (a).—The amendments made by subsection (a) shall take effect on January 1, 2005. (2) SUBSECTION (b).—The amendments made by subsection (b) shall apply to penalties imposed after December 31, 2004. SEC. 862. REGISTRATION OF PERSONS WITHIN FOREIGN TRADE ZONES, ETC. (a) IN GENERAL.—Section 4101(a), as amended by this Act, is amended by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph: ‘‘(2) REGISTRATION OF PERSONS WITHIN FOREIGN TRADE ZONES, ETC.—The Secretary shall require registration by any person which— ‘‘(A) operates a terminal or refinery within a foreign trade zone or within a customs bonded storage facility, or ‘‘(B) holds an inventory position with respect to a tax able fuel in such a terminal.’’. (b) TECHNICAL AMENDMENT.—Section 6718(a), as added by this Act, is amended by striking ‘‘section 4101(a)(2)’’ and inserting ‘‘sec tion 4101(a)(3)’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect on January 1, 2005. SEC. 863. PENALTIES FOR FAILURE TO REGISTER AND FAILURE TO REPORT. (a) INCREASED PENALTY.—Subsection (a) of section 7272 (relating to penalty for failure to register) is amended by inserting ‘‘($10,000 in the case of a failure to register under section 4101)’’ after ‘‘$50’’. 26 USC 4101 note. 26 USC 6718 note. 26 USC 4101 note. Applicability.
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