How to Fill Out Form 720 for PCORI Fee (Manual Filing)
The PCORI Fee, established under the Affordable Care Act through the Health Care and Education Reconciliation Act of 2010, funds the Patient-Centered Outcomes Research Institute (PCORI) for comparative clinical effectiveness research.
It applies to policy and plan years ending after September 30, 2012, with Congress extending its applicability through October 1, 2029, so filings may continue through 2030 depending on the plan year.
The fee is reported annually on IRS Form 720, Part II (IRS No. 133), generally due by July 31 each year. Filing can be done manually via mail or electronically through IRS-authorized e-file portals, which simplifies submission and reduces errors .
This comprehensive guide will take you through all the steps to file the PCORI Fee manually.
Step by step Guidelines for Manual PCORI Fee filings
Step 1: Download the Latest Version of IRS Form 720
Go to the IRS website to download the most up-to-date Form 720 available on the site. This is essential since you have to report the PCORI fee using this most recent IRS form 720.
Step 2: Provide Your Company Details
Provide the information about your business by entering your company’s name, mailing address, and EIN number. Ensure that you provide accurate information.
Step 3: Find IRS Number 133 – Patient-Centered Outcomes Research Fee
Go to the second part of Form 720; that is, to IRS Number 133 – Patient-Centered Outcomes Research Fee.
Step 4: Enter Plan or Policy Details under IRS Number 133
In Part II – IRS Number 133 – Patient-Centered Outcomes Research Fee, there are four subcategory lines. You must select the correct line based on your plan type and plan/policy end year:
Specified Health Insurance Policies (Fully Insured Policies):
(a) Policy year ending before October 1, 2025 – PCORI Fee: $3.47 per covered life.
(b) Policy year ending on or after October 1, 2025, and before October 1, 2026 – PCORI Fee: $3.84 per covered life.
Applicable Self-Insured Health Plans:
(c) Plan year ending before October 1, 2025 – PCORI Fee: $3.47 per covered life.
(d) Plan year ending on or after October 1, 2025, and before October 1, 2026 – PCORI Fee: $3.84 per covered life.
Step 5: Determine the Appropriate PCORI Fee Amount
Use the appropriate PCORI Fee calculation method based on your plan to compute the fee. Please visit our blog on PCORI Fee Calculation for additional details.
Step 6: Compute and Add Up Your Fees
After computing the fee for each category, add them up and place the figure at the bottom of Part II. Make sure that your computations are all accurate.
Step 7: Fill Out Part III for Payment Reporting
Input information for the payments you made, whether deposits, overpayments, or amounts payable under part 3.
Step 8: Submit Payment with Form 720-V
Complete the payment voucher Form 720-V and mail it along with your payment to the official IRS mailing address. Ensure the payment matches the total PCORI Fee calculated.
Who Is Required to Pay the PCORI Fee?
The responsibility of payment of the PCORI Fee lies with employers or plan sponsors who sponsor self-insured health coverage plans. The self-insured health coverage plans may include Health Reimbursement Arrangements (HRAs), which are not expected benefits.
Plans required to pay the PCORI Fee include:
Health and accident plans providing medical coverage to employees.
HRAs with a plan year beginning on or after January 1, 2012, that are not excepted benefits.
Health Flexible Spending Arrangements (FSAs) with a plan year beginning on or after January 1, 2012, that are not excepted benefits.
Retiree health plans that meet the definition of applicable self-insured coverage.
Why File Your PCORI Fee Online with Simple720?
Easy and Quick Form Filing: File your PCORI Fee online with the help of our IRS-Authorized portal that takes you through the entire process effortlessly.
Time Saving and Cost-saving: Save both your time and money by opting for an online method for your PCORI Fee filing.
Bulk PCORI Fee Filing: Effortlessly file multiple PCORI Fee in one go by using the Bulk filing option from our portal.
Certified By The IRS And AICPA SOC 2: File your PCORI Fee with the help of our IRS-Authorized portal that is also AICPA SOC 2 certified for a secure filing.
Validation And Prompts: Get validated and prompt messages while filing your form 720 to ensure that there are no mistakes made during submission.
Read our blog about why to choose Simple720 for all your Form 720 tax filings including PCORI.
Conclusion
Filing the PCORI Fee on time ensures compliance with IRS guidelines and helps you avoid penalties. While we provide a clear step-by-step guide for manual filing, choosing the online method is always the wiser option.
File your PCORI Fee online with Simple720 today!
