CHAPTER 68— ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES›Subchapter B— Assessable Penalties›PART I— GENERAL PROVISIONS
§ 6720C. Penalty for failure to notify health plan of cessation of eligibility for…
26 U.S.C. Subtitle F — Procedure and Administration (Internal Revenue Code) · 2026 edition · updated 2026-10-03 · United States
(a) In general
Except in the case of a failure described in subsection (b) or (c), any person required to notify a group health plan under section 9501(a)(2)(B) of the American Rescue Plan Act of 2021 who fails to make such a notification at such time and in such manner as the Secretary of Labor may require shall pay a penalty of $250 for each such failure.
(b) Intentional failure
In the case of any such failure that is fraudulent, such person shall pay a penalty equal to the greater of—
(1) $250, or
(2) 110 percent of the premium assistance provided under section 9501(a)(1)(A) of the American Rescue Plan Act of 2021 after termination of eligibility under such section.
(c) Reasonable cause exception
No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.
(Added Pub. L. 117–2, title IX, § 9501(b)(2)(A), Mar. 11, 2021, 135 Stat. 137.)
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