Legal Update: ACA Information Reporting Penalties Released for Returns Filed in 2026

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ACA Information Reporting Penalties Released for Returns Filed in 2026
IRS Revenue Procedure 2024-40 includes updated penalty amounts that may apply to reporting entities that fail to comply with the Affordable Care Act’s (ACA) requirements under Internal Revenue Code Sections 6055 and 6056. The increased amounts apply to 2025 information returns and individual statements required to be filed and furnished in 2026.

General Reporting Penalties
A reporting entity that fails to comply with the Section 6055 and Section 6056 reporting requirements may be subject to the general reporting penalties for:

• Failure to file correct information returns (under Code Section 6721).
• Failure to furnish correct payee statements (under Code Section 6722).

Penalties may be waived for reasonable cause and not willful neglect. They may also be reduced if corrected within certain timeframes.

Adjusted Penalty Amounts for 2025 Returns Filed in 2026:

1. Failure to file or furnish: $340 per return or statement (up from $330).
2. Corrected within 30 days after the due date: $60 per return or statement (unchanged).
3. Corrected after 30 days but before Aug. 1, 2026: $130 per return or statement (unchanged).
4. Intentional disregard: $680 per return or statement (up from $660). In some cases, this penalty may be higher, equal to the greater of $680 or 10% of the aggregate amount required to be reported.

Maximum Penalty Amounts:

• Lower annual maximums apply to small businesses (average annual gross receipts of up to $5 million for the three most recent taxable years).
• No maximum penalty for intentional disregard.

Important Dates

• March 3, 2025: Individual statements for the 2024 calendar year must be furnished by this date due to the standard Jan. 31 deadline falling on a weekend.
• March 31, 2025: Electronic IRS returns for 2024 must be filed by this date.

IRS Resources:
The IRS provides an information return penalties webpage with:

• Applicable penalty amounts by year.
• Resources on calculating and paying penalties.

IRS Revenue Procedure 2024-40
Information Return Penalties

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2024 Zywave, Inc. All rights reserved.