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As a business or an organization that manages a self-insured health plan, you are in all likelihood the one who has the responsibility for paying the Patient-Centered Outcomes Research Institute (PCORI) fee. The fee is annually reported and paid using IRS Form 720, the Quarterly Federal Excise Tax Return. Filing the form online may come out as a tough job, but it can surely make the whole thing faster and more efficient. This article provides you with each of the steps that you are to follow.

The PCORI fee generates funds that are used for research in informing patients and their caregivers of the best possible healthcare decisions. Employers with self-insured health plans and some health insurance policies must pay this fee annually. The fee amount is calculated as per the average number of lives that are covered under the plan. Although it is a part of Form 720, the PCORI fee is to be paid only once per year, usually by July 31st for the plans that expire in the previous calendar year.

Prior to initiating the e-filing process, make sure you have all the specific details that are being sought: you’re Employer Identification Number (EIN), the plan year end date, and the average number of covered lives. An IRS electronic return originator capable of e-filing Form 720 is also crucial. With some providers, you will even be presented with a step-by-step tutorial to ensure that you have chosen the right PCORI rate and plan year.

•Find an IRS-approved e-file provider that can handle Form 720 for you. Hence, to begin.

•Register and provide your business details.

•Select the appropriate second quarter for the filing (since PCORI fees are reported annually in Q2).

•Navigate to the "Part II – Patient-Centered Outcomes Research Fee" section.

•Enter the average number of lives covered and let the system calculate your fee using the IRS rate for that year.

•Submit and pay electronically through the provider.

Don't forget to save a copy of the confirmation and the final PDF for your records.

It is very important to file on time. The PCORI fee is not a separate filing and is only included in Form 720 and only for the second quarter of each year. Late filing may lead to IRS penalties, so remember to set up the calendar alerts. Make sure to also use the correct fee rate, which is revised annually and is disclosed by the IRS.

Filing the PCORI fee online using Form 720 is no hard job. With the right preparation and a reliable e-file provider, the process would be easy and fast—helping you stick to the rules and not worry.