Insights: Article

Affordable Care Act Penalties

By Tonya Rule

October 01, 2018

Complying with the Affordable Care Act is important. Employers face steep penalties for non-compliance.

The following outlines penalties as noted on IRS.gov. Please note that increased penalty amounts may apply for certain failures in the case of intentional disregard. The penalty rates and maximums for not filing correct information returns and/or not furnishing correct payee statements, including inflationary adjustments if applicable, are reflected in the following:

Small Businesses with Gross Receipts $5 Million or Less (*Average annual gross receipts for the most recent 3 taxable years) IRC 6721 & IRC 6722
Time returns filed/furnished Due 01-01-2011 thru 12-31-2015 Due 01-01-16 thru 12-31-2016 (Inflation adjusted) Due 01-01-17 thru 12-31-2017 (inflation adjusted) Dues 01-01-18 thru 12-31-2018 (Inflation Adjusted)
Not more than 30 days (by March 30 if the due date is February 28) $30 per return/ $75,000 maximum $50 per return/ $185,000 maximum $50 per return/ $186,000 maximum $50 per return/ $187,500 maximum
31 days late – August 1 $60 per return/ $200,000 maximum $100 per return/ $529,500 maximum $100 per return/ $532,000 maximum $100 per return/ $536,000 maximum
After August 1 or Not at All $100 per return/ $500,000 maximum $260* per return/ $1,059,500 maximum $260 per return/ $1,064,000 maximum $260 per return/ $1,072,500 maximum
Intentional Disregard $250 per return/ No limitation $520 per return/ No limitation $530 per return/ No limitation $530 per return/ No limitation
Large Business with Gross Receipts of More than $5 Million and Government Entities (*Average annual gross receipts for the most recent 3 taxable years) IRC 6712 and IRC 6722
Time returns filed/furnished Due 01-01-2011 thru 12-31-2015 Due 01-01-16 thru 12-31-2016 (Inflation adjusted) Due 01-01-17 thru 12-31-2017 (inflation adjusted) Dues 01-01-18 thru 12-31-2018 (Inflation Adjusted)
Not more than 30 days (by March 30 if the due date is February 28) $30 per return/ $250,000 maximum $50 per return/ $529,500 maximum $50 per return/ $532,000 maximum $50 per return/ $536,000 maximum
31 days late – August 1 $60 per return/ $500,000 maximum $100 per return/ $1,589,000 maximum $100 per return/ $1,596,500 maximum $100 per return/ $1,609,000 maximum
After August 1 or Not at All $100 per return/ $1,500,000 maximum $260 per return/ $3,178,500* maximum $260 per return/ $3,193,000 maximum $260 per return/ $3,218,500 maximum
Intentional Disregard $250 per return/ No limitation $520 per return/ No limitation $530 per return/ No limitation $530 per return/ No limitation

Contact your Eide Bailly professional or a member of our ACA team with questions or for assistance in complying with the ACA.

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