Intentional disregard: the ACA reporting penalty with no annual cap.
When an employer intentionally disregards the filing or furnishing requirement, the penalty is $690 per return or statement for returns due in 2027, with no annual maximum.
What intentional disregard costs.
$690 Per Return or Statement
The amount for returns due in 2027, set in Rev. Proc. 2025-32.
$680 for 2026
Returns due in 2026 carried a penalty of $680 per return or statement.
No Annual Cap
Unlike the other three tiers, there is no maximum for intentional disregard.
How the tier is reached.
A Higher Standard
The penalty applies when the failure reflects intentional disregard of the requirement, not an honest mistake.
Prior Warnings Matter
Ignoring an IRS notice or repeating a known error can move a failure toward this tier.
Dollar Amounts May Raise It
For returns that report an amount, the penalty can be greater of the stated figure or a percentage of the amount required to be reported.
Document Your Efforts
A record of what you did to comply is your best answer to a claim of disregard.
Quick answers.
Short answers. This is general information, not legal or tax advice.
Is a Missed Deadline Intentional Disregard?
Not by itself. The IRS looks at whether the failure was intentional. Reasonable cause and good faith are the opposite of disregard.
What About Reasonable Cause?
The reasonable cause waiver in 26 CFR 301.6724-1 is available to employers that act responsibly.
How Do We Avoid It?
Calendar the dates, correct known errors promptly and respond to IRS notices.
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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