Form 720 is also known as the Federal Excise Quarterly Tax Return by many businesses. When it comes to PCORI fees, the filing process is a bit different.
Reporting the PCORI fee is done using Form 720. It is usually only filed once a quarter, on your second quarter tax return. According to the IRS, the PCORI fee is reported on Form 720 annually and due by the 31st of July of the following year after the end of the plan or policy year.
Businesses can choose from a complete Form 720 filing or a PCORI fee-focused filing at Excise720 depending on the information they need to report.
What Is Form 720?
Form 720 is used to report and pay certain federal excise taxes. These can include taxes related to fuel, environmental taxes, communications, air transportation, indoor tanning services, and other excise tax categories.
For businesses that need to report multiple excise taxes, Excise720 offers Form 720 Filing at $49.95 / filing. This option is designed for users who need complete excise tax filing with all required forms and schedules.
In simple words, Form 720 is the main IRS form. The PCORI Fee is one specific fee that is reported inside that form.
What Is the PCORI Fee?
The PCORI Fee, also known as the Patient-Centered Outcomes Research Fee, applies to issuers of specified health insurance policies and sponsors of applicable self-insured health plans. The fee is based on the average number of lives covered under the policy or plan during the year.
For PCORI filing, the IRS uses IRS No. 133 under Form 720, Part II. In the Excise720 platform, this section appears as:
133 – Patient Centered Outcomes Research Fee
This is where users select the policy or plan type, enter the average number of lives covered, apply the correct tax rate, and review the final tax amount.
How Is the PCORI Fee Connected to Form 720?
The PCORI Fee is not a separate standalone IRS return. It is reported through Form 720.
This means:
The business calculates the PCORI Fee.
The fee is reported under IRS No. 133.
The filing is submitted using Form 720.
The payment is due with the Form 720 filing.
The IRS also explains that if a business files the second quarter Form 720 only to report the PCORI Fee, it does not need to file Form 720 for the other quarters unless it has other taxes or fees to report.
PCORI Fee Filing Is Not the Same as Full Form 720 Filing
This is the main difference businesses should understand.
Form 720 Filing
Form 720online Filing is suitable when a business needs to report one or more excise tax categories. This may include different taxable activities, schedules, claims, and supporting details.
With Excise720, the Form 720 Filing option is priced at $49.95 / filing and is ideal for complete excise tax filing.
PCORI Fee Filing
PCORI Fee Filing is more specific. It is used when the business only needs to report the Patient-Centered Outcomes Research Fee under Form 720.
With Excise720, the PCORI Fee Filing option is priced at $39.95 / filing and is built for quick filing of PCORI Fee – IRS No. 133 under Form 720.
Why PCORI Uses the Second Quarter Form 720
Although Form 720 is a quarterly return, the PCORI Fee is handled annually. The IRS states that the PCORI Fee is reported on the second quarter Form 720 and paid by July 31.
This can confuse many users because they may think Form 720 must be filed every quarter for PCORI. That is not usually required if PCORI is the only fee being reported.
For example:
If your business only needs to report the PCORI Fee, you generally file it once a year using the second quarter Form 720.
If your business has other excise tax liabilities, you may need to file Form 720 for other quarters as well.
How Excise720 Makes PCORI Fee Filing Easier
The Excise720 PCORI filing flow is designed to keep the process simple and clear.
Users can:
- Choose between specified health insurance policies and applicable self-insured health plans.
- Select the correct policy or plan year-ending option.
- Enter the average number of lives covered.
- Review the applicable tax rate.
- Check the calculated tax amount.
- Save and proceed with Form 720 filing.
This helps users avoid common filing mistakes, such as selecting the wrong plan year, applying the wrong rate, or missing the covered lives calculation.
Excise720 Pricing Options: Which Filing Should You Choose?
Excise720 gives users flexible filing options based on their needs.
Filing Option Best For
Form 720 Filing Complete excise tax filing with required forms and schedules
PCORI Fee Filing Quick filing for PCORI Fee under Form 720
Single Tax Filing Filing one excise tax quickly and efficiently
No Tax Filing Filing a zero-tax return to stay compliant
Enterprise Package High-volume filing needs
Annual Pass Unlimited filings with one simple yearly plan
If your business only needs to file the PCORI Fee, the PCORI Fee Filing option is the most direct choice. If your business needs to report multiple excise taxes, the Form 720 Filing option may be more suitable.
Who Needs PCORI Fee Filing?
PCORI filing generally applies to:
- Health insurance issuers
- Self-insured health plan sponsors
- Employers with applicable self-insured health plans
- Plan administrators handling Form 720 reporting
- Businesses responsible for IRS No. 133 reporting
The IRS states that issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans are responsible for reporting and paying the PCORI Fee.
Final Thoughts
Form 720 and the PCORI are related, but not identical. Form 720 is an IRS return that is used to report excise tax. The PCORI fee is a specific fee that is reported on Form 720.
Excise720 allows users to choose the best filing option, enter PCORI details and review tax amounts, as well as complete the online filing process.
Need to file only the PCORI Fee? Start with Excise720 PCORI Fee Filing at $39.95 / filing.
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