Get Announcement 2001-48 - New Form 720-to, Terminal Operator Report, And New Form 720-cs, Carrier

The amount of the PCORI fee is equal to the average number of lives covered during the policy year or plan year multiplied by the applicable dollar amount for the year.

The penalty for filing late is 5% of the total tax assessed that was not paid when due. It is charged each month or part of a month the return is late, for up to 5 months.

Issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans will file annually Form 720, Quarterly Federal Excise Tax Return, to report and pay the PCORI fee. The Form 720 will be due on July 31 of the year following the last day of the policy year or plan year.

Small businesses that sell goods or services that incur excise taxes need to file IRS Form 720 quarterly. Randa Kriss is a lead writer and small-business specialist at NerdWallet.

June 21, 2023 The IRS has released a revised Form 720, Quarterly Federal Excise Tax Return, the proper method to file and report PCORI fees. If you owe a PCORI fee, it must be paid using IRS Form 720 by July 31, following the last day of the policy year or plan year.

The IRS recently released Notice 2023-70, which outlines the Patient-Centered Research Institute (PCORI) fee rate for plan years ending on or after October 1, 2023 and before October 1, 2024. For these plans, the PCORI fee rate is $3.22 per covered life.

Although Form 720 is a quarterly return, it is filed annually for PCORI fee purposes, by July 31 of the year following the last day of the policy/plan year. For policy/plan years that ended on/after October 1, 2022, and before October 1, 2023, the PCORI fee is $3.00 per person.

The fee for policy and plan years ending on or after October 1, 2022, but before October 1, 2023, is increased to the applicable rate of $3.00 multiplied by the average number of lives covered under the policy or plan.