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26 USC § 6720C - Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance 

---
identifier: "/us/usc/t26/s6720C"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 6720C - Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "6720C"
section_name: "Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance"
chapter_number: 68
chapter_name: "ADDITIONS TO THE TAX, ADDITIONAL AMOUNTS, AND ASSESSABLE PENALTIES"
subchapter_number: "B"
subchapter_name: "Assessable Penalties"
part_number: "I"
part_name: "GENERAL PROVISIONS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 117–2, title IX, § 9501(b)(2)(A), Mar. 11, 2021, 135 Stat. 137.)"
---

# § 6720C. Penalty for failure to notify health plan of cessation of eligibility for continuation coverage premium assistance

**(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.

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**Source Credit**: (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 , , , which is set out as a note under .

### Prior Provisions

A prior section 6720C, added , , ; amended , , , related to penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance, prior to repeal by , , .