With the implementation of the Affordable Care Act (ACA), some issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans are required to pay a fee that helps fund the Patient-Centered Outcomes Research Institute.
The fee is based on the average number of people covered under the policy or plan in question and is applicable only to certain policies and health plans. The fee is required to be reported only once per year on Form 720 during the second quarter. That form’s due date is July 31. (Note that though the form is a quarterly return, Form 720 is filed annually only.)
According to the IRS, the fee “applies to policy or plan years ending on or after Oct. 1, 2012, and before Oct. 1, 2019.”
The fee is calculated based on the specific plan or policy an issuer holds. Churches will want to consult the IRS’s website and possibly a tax attorney or CPA to ensure that they are compliant with this fee, if applicable.
You can visit the IRS’s page (link below) for more information, including the final regulations of the Patient-Centered Outcomes Research Institute Fee, the notice used to calculate the applicable dollar amount of the fee, a Q&A about the fee, a chart summary, and Form 720 (Quarterly Federal Excise Tax Return).
The IRS’s website detailing the specifics of this fee can be found by clicking here.
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