The penalty for the late filing of a release of lien form varies by state. Generally, there is a late fee, which can range anywhere from a few dollars to a few hundred dollars, depending on the state's laws. Additionally, the lienholder may be subject to other penalties, such as interest on the amount of the lien or the loss of legal rights to collect the debt. It is important to check with your state's laws to understand the specific penalties for late filing of a release of lien form.