ACA late filing penalty examples with the numbers shown.
These examples use a hypothetical employer with 121 returns and 120 employee statements, 241 penalty units, and the IRS rates for returns due in 2025. Annual maximums can lower real totals.
What the IRS says.
Filed Within 30 Days
At $60 each for returns due in 2025, 241 units come to $14,460.
Filed 31 Days Through August 1
At $130 each, 241 units come to $31,330.
Filed After August 1 or Never
At $330 each, 241 units come to $79,530. For returns due in 2026 the rate is $340, which makes the total $81,940.
Three steps for the employer.
Two Missing Years
Two unfiled years roughly double the exposure to $159,060 in this illustration, because each year has its own returns and statements.
Five Statements Missed
Every return is filed but 5 employee statements are never furnished. At $330 each that is $1,650.
Intentional Disregard
At $660 each for returns due in 2025, the same 241 units come to $159,060, and the IRS states there is no maximum for intentional disregard.
Three questions to settle first.
Did We Apply Any Maximum?
Ask your adviser to apply the annual maximums the IRS publishes for small and large businesses.
What Is Our Real Count?
Ask your provider for the exact number of returns and statements for each year.
Can We File Sooner?
Ask how quickly the missing years can be filed to avoid the highest rate.
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
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