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IRS Revenue Procedure 2024-40 updates penalties for non-compliance with Affordable Care Act’s (ACA) requirements under Code Sections 6055 and 6056, affecting 2025 returns and 2026 filings.
General Reporting Penalties
Entities not complying with Sections 6055 and 6056 may face penalties for incorrect filings or statements. However, penalties can be waived for reasonable cause or reduced if corrected promptly.
Adjusted Penalty Amounts
For 2025 filings due in 2026, penalties are as follows: $340 for failing to file or provide a statement, $60 for corrections within 30 days, $130 for corrections after 30 days but before August 1, and $680 for intentional disregard. Penalties vary for small and large businesses, with no cap for intentional disregard.
Important Dates
The reporting deadlines for the 2025 calendar year, to which these increased penalties will apply, take place in early 2026.
The reporting deadlines for the 2024 calendar year are approaching. They are as follows:
- March 3, 2025: Individual statements for 2024 must be furnished within 30 days of January 31, 2025. The deadline falls on a weekend, so the individual statements should be furnished by March 3, 2025.
- March 31, 2025: Electronic IRS returns for 2024 must be filed by March 31, 2025.
IRS Resources
The IRS offers a webpage detailing yearly penalty amounts and resources for calculation and payment. Download the bulletin for more details.
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.
