PCORI Tax

You must file the PCORI fee using Form 720 if you manage or sponsor: Employers offering self-insured group health plans must report the PCORI fee annually. Health Insurance Issuers Insurance companies providing health coverage must report the fee based on the number of covered lives. Examples of Applicable Plans • Self-insured employer health plans • Retiree health coverage • COBRA continuation coverage • Health reimbursement arrangements (HRAs) • Certain multiemployer plans If your organization provides these types of health coverage, you are required to report the PCORI fee annually on Form 720.

File Your PCORI Fee Online with Excise720 When filing your return in the Excise720 portal, navigate to: Form 720 → Part II → Line 133 – Patient-Centered Outcomes Research Fee You will see the PCORI entry table where you must provide the required information. Step 1 – Start Your Filing Begin by creating a new filing in the Excise720 portal and select the appropriate tax quarter for Form 720. ⚠️ Important: PCORI fee filing is only applicable in the second quarter (April–June). During the Filing Setup step, choose the Form Type based on your requirement: • PCORI Only Filing – $39.95 Select this option if you are filing only the PCORI fee without reporting any other excise taxes. This is the best and most cost-effective option for businesses that only need to report PCORI. • Standard Form 720 Filing Select this option if you need to file PCORI along with other excise taxes reported on Form 720. After completing the Filing Setup, proceed to the Tax Details section where PCORI reporting appears under: Form 720 – Part II, Line 133 Step 2 – Enter PCORI Plan Details In the Tax Details section, navigate to: Form 720 – Part II, Line 133 (Patient-Centered Outcomes Research Fee) Select the applicable plan type: • Specified Health Insurance Policies - For insurance providers offering health coverage • Applicable Self-Insured Health Plans - For employers sponsoring their own health plans Then choose the appropriate policy type from the dropdown menu. Step 3 – Enter Covered Lives Enter the average number of covered lives for the plan year. The Excise720 system will automatically calculate the PCORI tax amount based on the latest IRS fee rate. Step 4 – Add Additional Plans (If Applicable) If your organization manages multiple health plans, click Add Row to enter additional plan details. Each plan can be reported separately within the same filing. Step 5 – Save and Continue Click Save to store your entries Click Proceed to Form 720 Claims to continue Step 6 – Review and Submit Complete the remaining steps: • Claims – report applicable credits • Deposits / Overpayment – enter previous payments • IRS Payment – confirm payment details • Review Form – verify all information • Submission – e-file your return with the IRS Once submitted, you will receive confirmation and can download your completed return from your dashboard.

Review and Submit Your Filing Before submitting your Form 720 return, verify the following: • Correct plan type selected • Accurate average covered lives count • IRS PCORI rate applied correctly Excise720 performs automated checks to help reduce common filing mistakes. Once verified, submit your Form 720 PCORI filing electronically to the IRS.

Pricing Guidance Summary ✅ PCORI Only Filing – $39.95 Best for filing only PCORI (Second Quarter only) ✅ Standard Filing Required if you are filing PCORI along with other excise taxes

Need Help Filing PCORI? Use the built-in help icons in the Excise720 portal for step-by-step guidance while entering PCORI details. Refer to IRS Form 720 instructions for Line 133 – Patient-Centered Outcomes Research Fee for official filing requirements. Contact our Excise720 support team if you need assistance with PCORI calculations, covered lives reporting, or completing your Form 720 filing