Notice 972CG Penalty Estimator (2025 and 2026 Amounts)

972CG penalty estimator

Estimate the IRC 6721 penalty the IRS would propose on Notice 972CG for a given number of returns in each tier, with the annual maximums applied, and optionally the matching IRC 6722 penalty for incorrect payee statements.

Basis IRC 6721 and 6722 as adjusted by Rev. Proc. 2024-40 (returns due in 2026) and Rev. Proc. 2023-34 (returns due in 2025)Privacy runs in your browser; nothing you enter is sent or stored

Year the returns were due

Small business (average gross receipts ≤ $5 million)

Payee statements were also wrong (adds IRC 6722)

Returns corrected within 30 days of the due date

Corrected after 30 days but by August 1

Corrected after August 1, or never corrected

Missing or uncorrected TINs land here.

Intentional disregard

No annual maximum.

How the estimate is built

Each tier is the number of returns times the per-return amount for the year selected, capped at the calendar-year maximum for that tier (the lower maximums apply to filers with average annual gross receipts of $5 million or less over the three prior years). Intentional disregard has no maximum and, under the statute, is the greater of the flat amount or 10% of the amount required to be reported; the estimator uses the flat amount. If the "payee statements" box is checked the same amounts are applied again under IRC 6722, because a return with a wrong TIN almost always went to the payee with the same wrong TIN.

Returns due in	Within 30 days	By August 1	After August 1	Intentional	Annual max (general / small)
2026	$60	$130	$340	$680	$4,098,500 / $1,366,000 (top tier)
2025	$60	$130	$330	$660	$3,987,000 / $1,329,000 (top tier)

The estimate is what the IRS would propose. A reasonable-cause statement showing the solicitation schedule was followed can reduce it to zero for TIN failures; see the 972CG guide and the statement template.