Avoid 7 Manual PCORI Fee Filing Mistakes on Form 720(2026)
Filing the PCORI Fee using the manual method seems easy. You just have to fill out Form 720 and send it to the IRS. When you do it yourself it is easy to make mistakes. These mistakes can be small. They can still cause big problems. You might get your form rejected or have to pay penalties. You might even have to deal with delays or pay the amount of taxes.
In this blog we will talk about the mistakes people make when they file the PCORI Fee manually with Form 720. We will also talk about how to avoid making these mistakes when you file the PCORI Fee.
1. Using the Wrong Version of Form 720
One of the most common mistakes is using an outdated version of Form 720. Many businesses download the form early and plan to file later. During that time, the IRS may release an updated version of the form.
Submitting an old version can create filing issues and may even lead to rejection.
To avoid this:
You should always get the latest Form 720 from the Internal Revenue Service website before you file it.
Make sure to check the year and month of the form to see if it is the recent one.
Look at the Internal Revenue Service website to see if they have any information or updates, for the Form 720.
2. Entering Incorrect Business or Tax Details
When filing manually, people often make mistakes while entering:
EIN
Business name
Mailing address
Tax year
Tax quarter
Even a small typing mistake can cause problems with IRS processing.
To avoid this:
You need to verify all the details of your business carefully before you mail back the return.
The EIN and the name of your business should be the same as you registered while applying.
Take a look at the tax period and the quarter to make sure everything is correct before you send it in.
Taking a few extra minutes to review the form can help avoid unwanted errors.
3. Choosing the Wrong Policy or Plan Year
PCORI Fee reporting contains different lines based on the policy year or plan year. Many filers accidentally enter the covered lives under the wrong section.
This mistake can result in incorrect tax calculation and rejection of Form 720.
To avoid this:
You need to find the date when your policy or plan ends.
When you are reporting, pick the line to write down the number of people who have coverage.
Before you start filling in the details make sure you read the Form 720 Instructions from the Internal Revenue Service.
Using the correct line number is very important for successful filing.
4. Using the Wrong PCORI Fee Rate
The PCORI Fee rate changes based on the policy ending period.
For example:
Policies ending between January and September use one rate.
Policies ending between October and December use another rate.
Many manual filers apply the wrong rate, which can lead to underpayment or overpayment.
To avoid this:
We need to confirm the correct policy ending period.
First we should check the rates that the IRS announced for the PCORI Fee.
Then we will use the PCORI Fee rate before we calculate the final amount, for the PCORI Fee.
Incorrect tax amounts may also result in IRS notices and penalties.
5. Incorrect PCORI Fee Calculation
Calculating the PCORI Fee manually can be confusing because there are different calculation methods available.
Depending on your company type and health plan structure, you may need to choose:
Actual Count Method
Snapshot Method
Form 5500 Method
Choosing the wrong method may result in incorrect tax reporting.
To avoid this:
You need to figure out what method your organization uses to do calculations.
It is an idea to use online calculators when you can.
If you are not sure about something you should get help from a professional before you decide on the tax amount, for your organization. They can help your organization get the tax amount.
A proper calculation helps avoid errors and saves time later.
6. Missing the Filing Deadline Due to Mailing Delays
When you do your taxes by hand your Form 720 needs to get to the Internal Revenue Service before the deadline.There can be delays in the mail because of the weekend, holidays, bad weather or problems with the service.
To avoid this:
Prepare your tax filing well in advance of the deadline.
Make sure you do not wait until the last day to send your return through the mail.
It is best to use a mailing service that provides tracking information.
Know about the PCORI Fee Due date for 2026.
7. Sending the Form to the Wrong IRS Mailing Address
Another common mistake is using the wrong PCORI mailing address for Form 720 submissions. If the form is mailed to the wrong location:
Processing may get delayed
The filing may not reach the correct IRS department
Penalties may apply for late filing
To avoid this:
You should always check the mailing address for the Internal Revenue Service before you send in your tax return.
Take a few minutes to read through the Internal Revenue Service instructions carefully before you mail everything in.
Using the correct address ensures your filing reaches the IRS on time.
One Simple Solution to Avoid These Mistakes
Choosing an online filing method instead of the manual method can help reduce most of these common errors. With an IRS-authorized online portal like Simple720, you can:
File your PCORI Fee securely online
Avoid manual calculation errors
Reduce mailing delays
Get guided filing support
Receive instant submission confirmation
Online filing makes the entire process faster, easier, and more reliable.
Also Read our blog on PCORI Online Vs Paper - Which is better? To know why you should always choose an online method for your PCORI Fee filings.
Conclusion
Filing the PCORI Fee by paper using Form 720 can be tedious and time consuming. You can make mistakes with forms or get the numbers wrong. Even mailing it late can cause trouble. The IRS requires all businesses to file the PCORI Fee Filings online.
Using Simple720 for your 720 PCORI Fee filing makes things a lot easier. It helps you do it correctly and on time so you do not have to worry about it.
