Federal Excise Taxes on PCORI to be reported in 2nd Quarter of 2019

It’s near time for the annual payment of the Patient-Centered Outcomes Research Institute (PCORI) by insurers and sponsors of self-funded medical plans. Just one of several fees, taxes and other assessments on health insurance companies and sponsors of self-funded health plans imposed by the Affordable Care Act (ACA). The PCORI fee helps fund research into appropriate standards of care and is due each July 31.

The payment due for a given July 31 is owed for the plan year ending in the preceding calendar year (e.g., the fee payable by July 31, 2019 is for plan years ending in 2018). Start with your PCORI Excise Taxes here.

Federal Excise Taxes Online

PCORI fee reporting and payment

The IRS collects the fee from the insurer or, in the case of self-funded plans, the plan sponsor in the same way many other excise taxes are collected. The fees are reported on and paid with IRS Form 720. Again, the filing and payment is due by July 31 of the year following the last day of the plan year to which the payment relates. Start with your PCORI Excise Taxes here.

You missed the PCORI payment. Now what?

An employer that overlooks reporting and payment of the PCORI fee should immediately file Form 720 and pay the fee, or file a corrected Form 720 to report and pay the fee, if the employer timely filed the form but neglected to report and pay the PCORI fee. Start with your PCORI Excise Taxes here.

The IRS might levy interest and penalties for the late filing and payment, but it has the authority to waive penalties for good cause. The IRS’s penalties for failure to file or pay are described here.