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What Happens If You File Form 7208 Late?
Jul 05 ,2025

What Happens If You File Form 7208 Late?

What is Form 7208?

Form 7208 is a specialty IRS excise tax form that calculates the 1% excise tax on stock repurchases made by publicly traded (or affiliated foreign) corporations after December 31, 2022. It must be attached to Form 720 the Quarterly Federal Excise Tax Return and the tax is reported under line IRS No. 150.

When is Form 7208 Due?

Unlike Form 720, which is filed quarterly, Form 7208 follows a different schedule. Its due date is based on the end of your corporation’s tax year, not the calendar quarters. You don’t submit Form 7208 immediately after your tax year ends. Instead, you must file it during the first full quarter following the close of your tax year—and attach it to the corresponding Form 720.
Refer to the table below for a clear breakdown of due dates based on your tax year-end.

If your tax year ends in:

Form 7208 + Form 720 due by:

Filed as part of which quarter’s Form 720:

January, February, March

Jul-31

2nd Quarter Form 720

April, May, June

Oct-31

3rd Quarter Form 720

July, August, September

January 31 (following year)

4th Quarter Form 720

October, November, December

April 30 (following year)

1st Quarter Form 720


What happens if you don’t file it before the due date?

There will be penalties if Form 7208 and its related excise tax are not filed or paid by the due date. The IRS imposes both interest and penalties for late filings, late payments, and other non-compliant behavior. Here's a detailed breakdown:

Interest and Penalties

The IRS charges interest on any late payments and on penalties assessed for non-compliance. This interest accrues from the original due date of the return or tax payment until the actual date of payment. The rate is determined under Section 6621 and is subject to change quarterly.

Late Filing of Return

If you fail to file Form 7208 with Form 720 by the due date, the IRS may charge a late filing penalty of:

  • 5% of the unpaid tax per month (or part of a month) the return is late

  • Up to a maximum of 25% of the unpaid tax

This penalty is specifically for not filing the return on time, regardless of whether the tax has been paid.

Late Payment of Tax

If you file the form but fail to pay the tax by the due date, a late payment penalty may apply:

  • 0.5% of the unpaid tax per month (or part of a month) the tax remains unpaid

  • Also capped at 25% of the unpaid tax

This penalty is focused only on the delay in payment, even if the form was submitted on time.

Other Penalties

Beyond late filing and payment, the IRS may also impose additional penalties for serious offenses such as:

  • Negligence: Failure to make a reasonable attempt to comply with tax laws

  • Fraud: Wilfully attempting to evade tax, which carries significantly higher penalties

These are assessed under Sections 6662 and 6663 of the Internal Revenue Code and can lead to severe financial consequences.

Exceptions for Penalties

In certain cases, penalties for late filing or late payment may be waived if you can show that the delay was due to reasonable cause and not wilful neglect. The IRS generally requires a written explanation after a notice is issued—not at the time of filing.

For a deeper understanding and complete filing guidelines, refer to the official IRS Form 7208 Instructions page for more detailed information.

WRAP:

Filing Form 7208 on time is critical to avoid costly IRS penalties and interest. Missing the deadline can lead to substantial financial consequences. Ensure you're aware of the due dates, and file on time. 

File your Form 7208 Online with Simple720 today!

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