Top 7 PCORI Filing Mistakes That Could Delay Your IRS Acceptance
Filing the Patient-Centered Outcomes Research Institute (PCORI) fee is an annual responsibility for many employers and health plan sponsors. While the filing process may seem straightforward, even small mistakes can lead to processing delays, IRS notices, or the need to submit corrections.
The good news is that most of these issues are completely avoidable. By understanding the most common filing errors, you can submit your PCORI fee online quickly, accurately, and on time.
In this guide, we'll cover the top seven PCORI filing mistakes, explain how to avoid them, and show how Excise720, an IRS-authorized e-file provider, simplifies the entire process.
What Is the PCORI Fee?
The Patient-Centered Outcomes Research Institute (PCORI) fee is a federal fee paid by issuers of specified health insurance policies and sponsors of applicable self-insured health plans. The fee is reported annually using IRS Form 720, Quarterly Federal Excise Tax Return, even though it is filed only once each year for the PCORI fee.
Many employers offering self-funded health plans are required to file Form 720 and pay the applicable PCORI fee before the IRS deadline.
1. Using the Wrong Average Covered Lives Calculation
One of the most common mistakes is calculating the number of average covered lives incorrectly.
The IRS permits several approved methods for determining average covered lives. Choosing the wrong method or making calculation errors can result in an incorrect fee amount.
How to avoid it:
- Review IRS-approved calculation methods carefully.
- Keep accurate enrollment records throughout the plan year.
- Verify your calculations before submitting your return.
The PCORI fee rate changes based on the plan year ending date. Using an outdated rate is a frequent reason for filing errors.
Always verify the correct fee applicable to your plan year before preparing Form 720.
Tip: Filing through Excise720 helps reduce calculation errors by simplifying the filing process and ensuring accurate data entry.
3. Filing Form 720 Under the Wrong Quarter
Although the PCORI fee is an annual obligation, it is reported on Form 720 for the second quarter.
Many first-time filers mistakenly choose another quarter, which can delay IRS processing.
Always confirm you're filing the correct reporting period before submitting your return.
4. Missing the Filing Deadline
Late filing can result in penalties and interest.
The PCORI fee is generally due by July 31 each year for most applicable plan years.
Waiting until the last minute increases the risk of missing the deadline due to technical issues or incomplete information.
Best Practice
- Prepare your filing early.
- Gather all supporting records in advance.
- Submit your return before the deadline.
Simple data entry mistakes such as:
- Incorrect Employer Identification Number (EIN)
- Wrong business name
- Incorrect mailing address
- Invalid contact information
can slow IRS processing or require additional correspondence.
Double-check every business detail before submitting Form 720.
6. Forgetting to Electronically File Form 720
Some businesses still rely on paper filing, which may take longer to process and increases the chance of manual errors.
Electronic filing offers several advantages:
- Faster submission
- Built-in error validation
- Secure transmission
- Faster IRS acknowledgment
- Convenient online record access
Using an IRS-authorized e-file provider like Excise720 helps streamline the filing process from start to finish.
7. Waiting Until the Last Day to File
Many filing problems happen simply because businesses wait until the deadline.
Last-minute filing can leave little time to fix errors, update information, or resolve technical issues.
Submitting your PCORI fee return early provides peace of mind and reduces unnecessary stress.
Benefits of Filing Your PCORI Fee Online
Online filing has become the preferred method for many businesses because it offers speed, convenience, and greater accuracy.
Benefits include:
- Faster IRS acceptance
- Automatic error checks
- Secure encrypted filing
- Easy document management
- Instant filing confirmation
- Reduced paperwork
- Convenient access from anywhere
Excise720 is an IRS-authorized e-file provider designed to make Form 720 filing simple and secure.
With Excise720, you receive:
- Easy online Form 720 preparation
- Secure electronic IRS submission
- Automatic accuracy checks
- Real-time filing status updates
- Email confirmation after successful filing
- Dedicated customer support
- Affordable pricing for PCORI-only filings
Whether you're filing for the first time or managing annual compliance, Excise720 helps simplify every step of the process.
Frequently Asked Questions
Who needs to file the PCORI fee?
Generally, employers sponsoring applicable self-insured health plans and certain health insurance issuers must report and pay the PCORI fee using Form 720.
Can I file my PCORI fee online?
Yes. Filing online through an IRS-authorized e-file provider is one of the fastest and most convenient ways to submit Form 720.
What happens if I make a mistake?
Errors may delay IRS acceptance or require corrections. Reviewing your information carefully before submission helps reduce these issues.
Is Form 720 only for the PCORI fee?
No. Form 720 is also used to report various federal excise taxes. The PCORI fee is one of the annual filings reported using this form.
Final Thoughts
Avoiding common filing mistakes can save your business time, reduce stress, and help prevent unnecessary IRS delays. By preparing accurate information, using the correct fee rate, filing the proper quarter, and submitting your return before the deadline, you can complete your PCORI filing with confidence.
For an even smoother experience, consider filing your PCORI fee online through Excise720. As an IRS-authorized e-file provider, Excise720 offers a secure, user-friendly platform with built-in accuracy checks, electronic submission, and real-time filing updates to help you stay compliant every year.
.png)
Comments
Post a Comment