Avoid PCORI Penalties – File Online in Minutes
What Is the PCORI Fee?
The PCORI fee is a federal charge established under the Affordable Care Act (ACA). It’s designed to fund research that helps patients and healthcare providers make informed decisions based on evidence and outcomes.
This annual fee is required for insurance providers and sponsors of self-insured health plans, including employers that offer self-funded health benefits. Though small in amount, the fee is mandatory and must be reported and paid accurately.How and When to Pay the PCORI Fee?
The PCORI fee is paid using IRS Form 720, also known as the Quarterly Federal Excise Tax Return. While Form 720 is filed quarterly, the PCORI fee is only due once a year—on the second quarter filing, which is due by July 31st each year.
For 2025, the due date is Thursday, July 31st.
Even if you don't have other excise tax liabilities, you must still file Form 720 to report and pay your PCORI fee. Failing to file or pay on time can result in significant consequences.
Why You Must Pay the PCORI Fee on Time?
Not filing or paying the PCORI fee by the due date may lead to IRS-imposed penalties and interest. These penalties can include:
Late Filing Penalty: 5% of the unpaid tax per month (up to 25%)
Late Payment Penalty: 0.5% of the unpaid tax per month (up to 25%)
Interest Accrual: Interest is charged on both the unpaid tax and the penalties until paid in full
How to Avoid PCORI Penalties?
Here’s how you can stay ahead and avoid any late penalties:
Choose the right e-filing platform
Use a reliable, IRS-authorized online provider like Simple720 to simplify and expedite your Form 720 filing. Manual filing increases your risk of errors and delays.Don’t wait until the last minute
Last-minute filings can be affected by high traffic on IRS servers, leading to processing delays and potential penalties.
Keep track of the July 31st deadline using calendar alerts or reminder tools to ensure your filings are completed well in advance. File with us once. Our Team sends reminders by mail next time.
Conclusion
Staying compliant with the IRS PCORI fee requirements doesn’t have to be stressful or time-consuming. By understanding the deadlines, choosing the right filing method, and planning ahead, you can completely avoid penalties and stay in good standing.
File with Simple720 today—our IRS-authorized PCORI filing portal lets you complete your PCORI fee filing in just a few minutes. Fast, secure, and penalty-free.