The full ACA reporting penalty: $340 per form after August 1 or when never filed.
The top tier applies to returns filed after August 1 and to returns never filed: $340 per return and $340 per statement, up to $680 per form.
What the top tier costs.
$340 Per Return
The Section 6721 amount for returns filed after August 1 or never filed.
$340 Per Statement
The Section 6722 amount for statements furnished after August 1 or never.
Up to $680 Per Form
A form that is never filed and never furnished carries both amounts.
The most an employer pays in this tier.
Smaller Employers
$1,397,000 for employers with average annual gross receipts of $5 million or less, for returns due in 2027.
Larger Employers
$4,191,500 for employers over $5 million in gross receipts, for returns due in 2027.
2026 Returns
Returns due in 2026 carried caps of $1,366,000 and $4,098,500.
A Worked Example
An employer with 100 full-time employees that files and furnishes after August 1 owes 100 times $340 plus 100 times $340, or $68,000, under the cap.
Quick answers.
Short answers. This is general information, not legal or tax advice.
What Does Never Filed Mean?
A return that is not filed at all stays in this tier until it is filed correctly, so there is no cap on time, only the annual dollar cap.
Is Intentional Disregard Different?
Yes. It is a separate, higher penalty with no annual cap.
What Do We Do First?
File accurate forms as soon as possible. Correcting later does not move you to a lower tier once August 1 has passed.
Where the rules and figures come from.
Each figure on this page comes from the source below. Amounts are indexed or updated over time, so confirm current figures before relying on them.
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