Form 720: Quarterly Federal Excise Tax Return, Due Dates and the PCORI Fee

“Use Form 720 and attachments to:
Report liability by IRS number.
Pay the excise taxes listed on the form.”

“Use Form 720 and attachments to report your liability by IRS No. and pay the excise taxes listed on the form. If you report a liability in Part I or II, you may be eligible to use Schedule C to claim a credit.”

“You must file Form 720 if:
You were liable for, or responsible for collecting, any of the federal excise taxes listed in Form 720, Parts I and II, for a prior quarter and you haven’t filed a final return; or
You are liable for, or responsible for collecting, any of the federal excise taxes listed in Form 720, Parts I and II, for the current quarter.”

“Caution: See Patient-centered outcomes research (PCOR) fee (IRS No. 133), later, under Part II for special rules about who must file to report the PCOR fee.”

“You must file a return for each quarter of the calendar year as follows.”

“If any due date for filing a return falls on a Saturday, Sunday, or legal holiday, you may file the return on the next business day.”

“Send Form 720 to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009”

“Sections 4375 and 4376 patient-centered outcomes research fee increase. The fee for policy and plan years ending on or after October 1, 2025, but before October 1, 2026, is increased to the applicable rate of $3.84, multiplied by the average number of lives covered under the policy or plan. The fee for policy and plan years ending on or after October 1, 2024, but before October 1, 2025, remains at the applicable rate of $3.47, multiplied by the average number of lives covered under the policy or plan. See Patient-centered outcomes research (PCOR) fee (IRS No. 133), later, and Notice 2025-61.”

“Patient-centered outcomes research (PCOR) fee (IRS No. 133). The PCOR fee is imposed on issuers of specified health insurance policies (section 4375) and plan sponsors of applicable self-insured health plans (section 4376) for policy and plan years ending on or after October 1, 2012. Generally, references to taxes on Form 720 include this fee.”

“For issuers of specified health insurance policies, the fee for a policy year ending on or after October 1, 2025, but before October 1, 2026, is $3.84 (line 133(b)) ($3.47 for a policy year ending on or after October 1, 2024, but before October 1, 2025 (line 133(a)), multiplied by the average number of lives covered under the policy for that policy year.”

“For plan sponsors of applicable self-insured health plans, the fee for a plan year ending on or after October 1, 2025, but before October 1, 2026, is $3.84 (line 133(d)) ($3.47 for a policy year ending on or after October 1, 2024, but before October 1, 2025 (line 133(c)), multiplied by the average number of lives covered under the plan for that plan year.”

“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 applicable dollar amount is adjusted yearly to reflect increases in National Health Expenditures, as determined by the Secretary of Health and Human Services.”

“The applicable dollar amount that must be used to calculate the fee imposed by sections 4375 and 4376 for policy years and plan years that end on or after October 1, 2025, and before October 1, 2026, is $3.84.”

“The PCORI fee applies to specified health insurance policies with policy years ending after Sept. 30, 2012, and before Oct. 1, 2029, and applicable self-insured health plans with plan years ending after Sept. 30, 2012, and before Oct. 1, 2029.”

“Report the average number of lives covered in column (a). Apply the applicable rate (column (b)) and enter the fee in column (c).”

“Combine the fees for specified health insurance policies and applicable self-insured health plans and enter the total in the “Tax” column on the line for IRS No. 133.”

“Generally, all individuals who are covered during the policy year or plan year must be counted in computing the average number of lives covered for that year.”

“Generally, issuers of specified health insurance policies must use one of the following four alternative methods to determine the average number of lives covered under a policy for the policy year.
The actual count method.
The snapshot method.
The member months method.
The state form method.”

“Generally, plan sponsors of applicable self-insured health plans must use one of the following three alternative methods to determine the average number of lives covered under a plan for the plan year.
Actual count method.
Snapshot method.
Form 5500 method.”

“Also, health insurance policies and self-insured plans that provide only excepted benefits, such as plans that offer benefits limited to vision or dental benefits and most flexible spending arrangements, are not subject to the PCORI fee.”

“File Form 720 annually to report and pay the fee on the second-quarter Form 720 no later than July 31 of the calendar year immediately following the last day of the policy year or plan year to which the fee applies.”

“If you file Form 720 only to report the fee, don't file Form 720 for the first, third, or fourth quarter of the year.”

“Deposits aren't required for this fee, so issuers and plan sponsors aren't required to pay the fee using EFTPS. However, if the fee is paid using EFTPS, the payment should be applied to the second quarter.”

“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 is due on July 31 of the subsequent calendar year following the last day of the policy year or plan year. Electronic filing is available but not required. Payment is due at the time the Form 720 is due. Deposits are not required for the PCORI fee.”