IRS Form 720 & PCORI Fees

IRS Form 720, the Quarterly Excise Tax Return, is used to report and pay excise taxes on specific goods, services, and activities. This form encompasses a wide array of excise taxes, including environmental, fuel, and communication taxes, as well as the Patient-Centered Outcomes Research Institute (PCORI) fees. This guide provides an overview of what to report, how to file, and the deadlines to keep in mind for timely submissions.

What is IRS Form 720? 

IRS Form 720, Quarterly Excise Tax Return, is used to report liability and pay excise taxes, which are levied on specific goods, services, or activities. 

What information is reported on Form 720? 

Form 720 is used to report a variety of excise taxes. This includes the following:

• Environmental Taxes
• Communications and Air Transportation Taxes
• Fuel Taxes
• Retail Tax
• Ship Passenger Tax
• Foreign Insurance Taxes
• Manufacturer’s Taxes
• Patient-centered outcomes research (PCOR) fee (also known as PCORI fee)
• Other taxes

Who must submit Form 720?

Those who are liable for, or responsible for collecting, any taxes listed on Form 720 for a prior or current quarter and haven’t yet filed a return. 

How can Form 720 be filed? 

Filers can submit their Form 720 electronically or through mail. 

• If submitting electronically, filers can use any electronic return originator (ERO), transmitter, and/or intermediate service provider (ISP) that participates in the IRS e-file program for excise taxes. 
• If submitting by mail, filers must send their form to: 

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0009

What are the deadlines for Form 720? 

A return must be filed for each quarter of the calendar year. The due dates are as follows: 

Quarter covered	Due by
Jan., Feb., Mar.	April 30
Apr., May, June	July 31
July, Aug., Sept.	October 31
Oct., Nov., Dec.	January 31

However, if one of the due dates falls on a weekend or legal holiday, then the due date is the next business day. 

What are PCOR fees?

PCOR fees, or Patient-Centered Outcomes Research fees, are fees imposed on health insurers and/or plan sponsors of self-insured plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). The PCORI was first established under the Affordable Care Act (ACA). These fees are sometimes also called PCORI fees.

This fee is calculated based on the number of covered lives under the policy/plan and is paid using IRS Form 720 each year. 

What is the Patient-Centered Outcomes Research Institute? 

The Patient-Centered Outcomes Research Institute (PCORI) is a nonprofit organization in the US established under the Affordable Care Act (ACA). Its main goal is to fund research that can help patients, caregivers, and healthcare providers make informed health decisions by providing them with reliable high-quality evidence on how to best prevent, diagnose, treat, and manage diseases. 

Who must pay PCORI fees?

PCORI fees are paid by insurers of health insurance policies and sponsors of certain self-insured and level-funded health plans.

• Insurers – For fully-insured health plans, the insurance carrier is responsible for paying these fees. They are typically included in the cost of the premium and are calculated based on the number of people covered under the policy.
• Plan Sponsors – For self-insured and level-funded health plans (including HRAs and some FSAs), the plan sponsor is responsible for paying these fees. The sponsor is typically the employer or other entity that administers the plan. The fees are calculated based on the number of people covered under the policy.

Other Resources

We have many other resources to ensure that you’re up-to-date on the latest tax news. Check out our Essential Guides to master all of your filing requirements! Stay ahead of deadlines throughout the year, check them out here:

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