2021 US Code
Title 26 - Internal Revenue Code
Subtitle F - Procedure and Administration
Chapter 68 - Additions to the Tax, Additional Amounts, and Assessable Penalties
Subchapter B - Assessable Penalties
Part I - General Provisions
Sec. 6720C - Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance
| 26 U.S.C. § 6720C (2021) |
| §6720C. Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance |
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(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 failureIn 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. 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. |
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(Added Pub. L. 117–2, title IX, §9501(b)(2)(A), Mar. 11, 2021, 135 Stat. 137.) |
| EDITORIAL NOTES
REFERENCES IN TEXT
Section 9501(a) of the American Rescue Plan Act of 2021, referred to in subsecs. (a) and (b)(2), is section 9501(a) of title IX of Pub. L. 117–2, Mar. 11, 2021, 135 Stat. 127, which is set out as a note under section 4980B of this title. PRIOR PROVISIONSA prior section 6720C, added Pub. L. 111–5, div. B, title III, §3001(a)(13)(A), Feb. 17, 2009, 123 Stat. 464; amended Pub. L. 111–144, §3(b)(5)(D), Mar. 2, 2010, 124 Stat. 45, related to penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance, prior to repeal by Pub. L. 115–141, div. U, title IV, §401(d)(7)(B), Mar. 23, 2018, 132 Stat. 1212. |
| United States Code, 2018 Edition, Supplement 3, Title 26 - INTERNAL REVENUE CODE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 26 - INTERNAL REVENUE CODE Subtitle F - Procedure and Administration CHAPTER 68 - ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES Subchapter B - Assessable Penalties PART I - GENERAL PROVISIONS Sec. 6720C - Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance |
| section 6720C |
| 2021 |
| January 3, 2022 |
| No |
| standard |
| 123 Stat. 464 124 Stat. 45 132 Stat. 1212 135 Stat. 137, 127 |
| Public Law 111-5, Public Law 111-144, Public Law 115-141, Public Law 117-2 |
