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ACA Reporting Penalties Increase for 2025

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IRS Revenue Procedure 2023-34 outlines updated penalties for noncompliance with ACA requirements under IRC Sections 6055 and 6056. These increased penalties apply to 2024 information returns and individual statements that are to be filed and furnished in 2025.

General Reporting Penalties

Failure to comply with the Section 6055 and Section 6056 reporting requirements may result in penalties for:

  • Failure to file correct information returns; and
  • Failure to furnish correct payee statements.

Penalties may be waived for reasonable cause and reduced for reporting errors if it’s corrected in a timely manner.


Adjusted Penalty Amounts

Failure to comply with Section 6055 and Section 6056 reporting requirements may be subject to general reporting penalties. For 2024 information furnished in 2025, the adjusted penalties amounts are as follows:

  1. Failure to file an information return or file an individual statement is $330 per return or statement;
  2. Returns that are corrected within 30 days after the due date is $60;
  3. For returns corrected after 30 days but before August 1, 2025, the penalty is $130;
  4. Failing to file a correct information return or provide a statement due to intentional disregard is $660.

Penalties vary for small and large businesses, with lower maximums for entities with annual gross receipts up to $5 million in the past three years. There is no maximum penalty for intentional disregard. Download the bulletin for more details. 


Additional Resource

IRS Information Return Penalties Webpage

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Steve Smith

Steve Smith

Steve Smith, Employee Benefits Consultant for National Insurance Services, has his energy level permanently set at “high.” His maxim is “work hard, play hard.” Steve’s an expert in getting groups of people working together for a higher cause. Minnesota schools, cities, and counties rely on Steve’s unique and creative ideas of engaging employees in their own health and wellness to lower utilization trends. He has 20+ years in the health insurance field doing compliance, cost mitigation, utilization, analytics, wellness plans, and strategic planning. Steve is a licensed insurance agent and holds the designations for Managed Healthcare Professional (The Health Insurance Association of America), Certified Patient Protection and Affordable Care Act Professional (National Association of Health Underwriters), and Group Benefits Disability Specialist (Hartford School of Insurance). He specializes in Employee Benefits Consulting for Minnesota schools, cities, and counties including fully insured, self-insured, and stop-loss plans.