A penalty will be imposed if an organization is required to file Form 8872 and it: Fails to file the form electronically by the due date, Files the form electronically but fails to report all of the information required or reports incorrect information. The penalty is 21 percent of the total amount of contributions and expenditures to which a failure relates. Requesting abatement of tardiness penalty on electronic filing after rejection of paper form Failure to file the information form in the prescribed time and manner can give rise to a penalty under the tax law. A filer may request abatement of a penalty in a written statement setting forth all the extenuating circumstances. You may make the request in response to a penalty notice that you receive or, in the case of Forms 990 or 990-PF, when you electronically file the return. Explain what facts previously prevented the electronic filing. Include the date of the attempted paper filing. For more information, see the Penalty Relief webpage. Additional information Abatement of penalties - reasonable cause for failure to disclose certain required information.