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The Patient-centred Outcomes Research Institute (PCORI) fee is a tax that is levied on issuers of specified health insurance policies and sponsors of applicable self-insured health plans. The agency uses the fund for research that helps patients and healthcare professionals make better decisions about their health. Your business would have to file and pay this fee with the IRS if you are the type that uses self-insured health coverage or you are into health insurance. 

Form 720 from the IRS. The detailed guide is designed for businesses, not for individuals, since the latter do not count the fee. You are an insurer or a self-insured business, and you have to use it for health plan fees and insurance. 

Form 720, popularly known as the Quarterly Federal Excise Tax Return, is used to both pay and declare a number of federal excise taxes, including the PCORI fee. Although it may seem a bit overwhelming at first, the number of lines needed to report the PCORI fee is indicated if that is the only applicable tax. This makes it a straightforward process for companies that are only filing in relation to PCORI, and that, too, when done online, is very easy.

Filing Form 720 electronically is not just time-saving; it is also safer and puts off data entry errors. The IRS duly accepts e-filing through certified e-file providers. You are the one who should confirm that the form has been successfully submitted or if any balance is due through a notice. Additionally, there is an extra option, which is to use the IRS' Modernized e-File (MeF) platform. It is a different method of electronic filing containing additional features, such as acknowledgment from the IRS after each of the 5 stages.

Should you wish to complete Form 720B electronically for the PCORI Fee, you will be required to gather the average number of covered lives under your health plan for the previous plan year. You will also need your EIN, contact details, and the correct PCORI fee rate (which is annually updated by the IRS). After you have computed the fee by multiplying the number of covered lives by the current rate, you record the amount on the particular line (IRS No. 133) of the form.

Failure to pay the PCORI fee on time or making incorrect entries on Form 720 may result in fines and interest being charged. E-filing can solve the problem of errors more quickly besides ensuring the accuracy of filings. By learning the essentials and availing oneself of the e-filing avenue, it is possible for your company to comply with IRS regulations and at the same time to champion healthcare research initiatives of public interest.