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.
Quick Form 720 PCORI Fee Filing Instructions for 2026
- For the 2026 PCORI filing, report fees for applicable self-insured health plans with plan or policy years ending during 2025.
- Enter your plan details, including the plan or policy year end date, and select the appropriate PCORI calculation method based on your plan information.
- Calculate the average number of covered lives using one of the IRS-approved methods: Actual Count Method, Snapshot Method, or Form 5500 Method.
- Apply the applicable PCORI fee rate for the filing year to the average number of covered lives to determine the total fee amount.
- Review all entered information, complete the required payment details, and submit Form 720 electronically before the deadline to ensure timely compliance.
How to Fill Out Form 720 for PCORI Fee?
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
Choose the right PCORI Fee calculation method based on your plan details. You can calculate the fee using one of the available methods: Actual Count Method, Snapshot Method, or Form 5500 Method.
Example:
If you select the Actual Count Method, use the following formula:
(Total number of covered lives for each day of the plan year ÷ Number of days in the plan year) × Applicable PCORI fee per covered life
Assume a company has:
- 15 employees covered for all 365 days of the plan year
- 5 employees covered for 120 days
First, calculate the total covered lives:
Total covered lives = (15 × 365) + (5 × 120)
5,475 + 600 = 6,075
Applicable PCORI fee rate = $3.84 per covered life
Next, calculate the average number of covered lives:
Average covered lives = 6,075 ÷ 365 = 16.64
Now calculate the total PCORI fee:
PCORI Fee = 16.64 × $3.84
Total PCORI Fee = $63.90
Each method has its own calculation process. The Snapshot Method and Form 5500 Method follow different formulas to determine the average covered lives and calculate the PCORI fee.
For a detailed explanation of all three calculation methods, visit our blog on PCORI Fee Calculation.
To make the process easier, use our PCORI Fee Calculator and get your accurate PCORI fee amount in just a few seconds.
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, over-payments, 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.
Current Form720 mailing addressInternal Revenue Service
Ogden, UT 84201-0009
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.
Do not miss the PCORI Fee due date for 2026 which is July 31st to avoid penalties.
Why File Your PCORI Fee Online with Simple720?
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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!
FAQ
1)When Is the PCORI Fee Due?
The PCORI Fee reported on the 2026 Form 720 is due by July 31, 2026. The fee applies to applicable self-insured health plans with plan or policy years ending in 2025.
2)Is Filing the PCORI Fee Mandatory?
Yes, employers or plan sponsors with applicable self-insured health plans are generally required to file Form 720 and pay the PCORI Fee unless an exemption applies.
3)Can I Avoid PCORI Penalties?
Filing and paying the PCORI Fee on time helps avoid penalties and interest. If you miss the deadline, you may request penalty relief by showing reasonable cause.
4)What Are the Ways to File Your PCORI Fee in 2026?
You can file your PCORI Fee using paper Form 720 or through an IRS-authorized electronic filing provider for faster processing and status updates.
