IRS Form 8928 – IRS Forms, Instructions, Pubs 2026 – In the complex world of tax compliance, IRS Form 8928 plays a crucial role for employers and group health plan sponsors. This form is essential for reporting certain excise taxes related to failures in providing adequate health coverage or meeting specific regulatory requirements. Whether you’re an HR professional, benefits administrator, or business owner, understanding Form 8928 can help you avoid costly penalties and ensure compliance with the Internal Revenue Code (IRC). In this SEO-optimized guide, we’ll break down everything you need to know about IRS Form 8928, including its purpose, filing requirements, and recent updates as of 2026.
What Is IRS Form 8928?
IRS Form 8928, titled “Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code,” is used to self-report and pay excise taxes for specific noncompliance issues related to employee health benefits. These taxes are imposed under Chapter 43 of the IRC, which addresses excise taxes on failures in group health plans, health savings accounts (HSAs), and similar arrangements.
The form covers excise taxes for violations such as not meeting minimum standards for health coverage or failing to provide comparable contributions to employee accounts. It’s not a routine annual filing but is triggered by specific events or failures. For instance, if your organization fails to comply with certain Affordable Care Act (ACA) provisions or other health-related mandates, this form allows you to report and remit the associated taxes.
Key sections of the form include parts for different types of failures, with lines for calculating taxes based on reasonable cause versus willful neglect. The structure typically requires separate calculations for each category of failure, ensuring accurate reporting of taxes owed.
Who Must File Form 8928?
Form 8928 must be filed by employers, group health plan sponsors, or issuers who are liable for excise taxes due to noncompliance. This includes:
- Employers sponsoring group health plans: If your plan fails to meet requirements under sections like 4980B (COBRA continuation coverage) or 4980D (market reforms and portability).
- HSA or Archer MSA trustees: For failures in making comparable contributions under sections 4980E and 4980G.
- Health insurance issuers: In cases involving failures to provide adequate coverage levels, such as pediatric vaccines as defined in the Public Health Services Act.
If your organization identifies a compliance failure—such as a late COBRA notice or nondiscrimination violation—you’re required to file this form to address the excise tax. Small businesses and large corporations alike may be affected, especially those offering employee health benefits.
Excise Taxes Covered Under Chapter 43
Chapter 43 of the IRC outlines several excise taxes that Form 8928 reports. These are penalty-like taxes designed to encourage compliance with health benefit laws. Common excise taxes include:
- Failure to satisfy continuation coverage (COBRA): Under section 4980B, taxes apply if eligible employees aren’t offered continued coverage after qualifying events.
- Portability, access, and renewability failures: Sections 9801–9815 cover issues like HIPAA portability and ACA market reforms, including prohibitions on preexisting condition exclusions.
- Comparable contributions to Archer MSAs or HSAs: Sections 4980E and 4980G impose taxes if employers don’t make equivalent contributions for all eligible employees.
- Minimum coverage for pediatric vaccines: Ensuring coverage isn’t reduced below 1993 levels under section 4980D.
- Other group health plan violations: This can include nondiscrimination rules or failures in providing minimum essential coverage.
Taxes are calculated based on the number of affected individuals and the duration of the failure. For example, under section 4980D, the tax is generally $100 per day per affected individual, with caps for unintentional failures.
How to File IRS Form 8928?
Filing Form 8928 involves several steps to ensure accuracy and compliance:
- Identify the failure: Review your health plan records for any noncompliance events.
- Calculate the tax: Use the form’s parts to compute taxes separately for failures due to reasonable cause (with potential waivers) and those from willful neglect.
- Complete the form: Fill out identifying information, tax calculations, and any applicable schedules. The form requires details like the number of affected individuals and failure periods.
- Attach payment: Pay the excise tax when filing, using electronic funds transfer for larger amounts.
- Submit the form: Mail it to the IRS address listed in the instructions or file electronically if eligible.
For detailed guidance, refer to the official Instructions for Form 8928, which provide step-by-step calculations and examples. Tools like tax software can assist, but always verify against IRS guidelines.
Filing Deadlines for Form 8928
The deadline for filing Form 8928 aligns with your federal income tax return due date, including extensions. For corporations, this is typically the 15th day of the fourth month after the end of the tax year (e.g., April 15 for calendar-year filers). If the failure spans multiple years, file for each applicable year.
In cases of self-correction or reasonable cause, filing promptly can reduce penalties. For 2025 tax year filings in 2026, ensure submission by your extended deadline to avoid additional interest.
Penalties for Non-Compliance
Failing to file Form 8928 or pay the excise taxes can lead to significant penalties, including interest on unpaid amounts and additional fines for late filing. The IRS may assess penalties under section 6651 for failure to file or pay, which can be up to 25% of the tax due. Willful neglect can result in higher taxes without caps.
To mitigate penalties, demonstrate reasonable cause—such as unavoidable delays—and file as soon as possible. Compliance with ACA and other health laws is key to avoiding these issues altogether.
Recent Updates to Form 8928 in 2025–2026
The latest revision of Form 8928 and its instructions was released in December 2025, with postings on December 30, 2025. As of January 23, 2026, there are no significant recent developments or changes reported by the IRS. However, always check IRS.gov for any legislative updates, especially related to health care reforms.
For the 2025 tax year, the form includes provisions for separate reporting of failures based on cause, emphasizing accurate self-assessment. HR compliance calendars for 2025 and 2026 highlight Form 8928 as a key filing for health plan violations, integrating it with broader ACA reporting.
Conclusion: Stay Compliant with IRS Form 8928
Navigating IRS Form 8928 doesn’t have to be overwhelming. By understanding its role in reporting excise taxes under Chapter 43, you can proactively address health plan failures and minimize financial risks. Regularly review your benefits programs for compliance, and consult a tax professional for personalized advice. For the most current information, visit IRS.gov/Form8928 or download the form and instructions directly from the official site.
Remember, timely filing not only avoids penalties but also supports a healthier workforce. If you’re dealing with group health plans, HSAs, or COBRA requirements, keeping Form 8928 on your radar is essential for 2026 tax compliance.