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Employers and health plan sponsors should continue to comply with IRS filing requirements as the 2025 PCORI fee deadline approaches. The Affordable Care Act (ACA) requires the Patient-Centered Outcomes Research Institute (PCORI) to collect an annual fee in order to fund clinical effectiveness studies. The Quarterly Federal Excise Tax Return, Form 720, is where it must be recorded, and the appropriate fee must be paid. Since July 31, 2025, is the last day to file taxes, failing to do so will result in penalties and a failure to comply with the law. 

The PCORI charge is required of employers who sponsor Health Reimbursement Arrangements (HRAs) or self-insured health plans. Corporations, non-profits, governmental organizations, and other plan sponsors are in the list of types. The price is usually covered by your coverage provider if your insurance plan is fully insured. Employers who are self-insured will be the one filing. Understanding the structure of your health plan is the first step in determining your filing obligations. You will be able to clarify your filing obligations for the 2025 PCORI reporting year thanks to it. 

The 2025 calendar year's Form 720 PCORI fee, which applies to plan years that ended between October 1, 2024, and September 30, 2025, is due on July 31, 2025. According to the IRS, the revised PCORI fee rates are typically anticipated in the spring of each filing year. The rate was $3.22 per insured life for plan years ending before October 2024. Employers should use one of the IRS-approved methods—actual count, snapshot, or Form 5500 method—to accurately determine the number of covered lives. 

Employers are required to inform the IRS about the PCORI tax by completing Part II of Form 720, specifically the section labelled "Patient-Centered Outcomes Research Fee." Through authorized e-file providers, they have the option of submitting a paper form or filing electronically. The PCORI charge should only be applied to the second quarter of the year, even though Form 720 is a quarterly return. Remember to have a copy for your own records and a paper trail to prove that the payment was successful once you have completed the filing process. 

An employer should plan to gather the required data throughout the year to prevent any needless expenses or issues with the tax authorities. It's important to check the plan year and maintain access to the plan documentation. Take advantage of electronic filing services and stay updated with the latest IRS publications regarding PCORI fee rates and ensuring that accurate and timely work will be delivered. In the case of Form 720 PCORI 2025, being proactive will guarantee that you reach the deadline and that penalties are avoided without a doubt, regardless of how big or little your company is.