After the passage of authorization by Congress, the ‘Patient-Centered Outcomes Research Institute’ conducts several researchers to find out effective ways to prevent, diagnose, and treat diseases. To meet the funds required for doing the researchers, the Congress set up the patient-centered outcomes research fee, which is a part of the other health measures passed under the ‘Patient Protection and Affordable Care Act of 2010’. In this blog, we shall discuss more about the fee imposed by the IRS.
The fees charged by the issuers of health insurance policies and self-insured health plan sponsors make the funding of the Patient-Centered Outcomes Research Institute. This year the IRS imposed fees on Patient-Centered Outcomes Research Fee and was collected for the first time on July 31, 2013. Insurance providers and plan sponsors should prepare and file before the time expires. Taxpayers who are to report this excise tax need to file it with IRS form 720. For additional information, the IRS imposes fees on specified health insurance policies, issued to those residing in the U.S. However, there are exemptions to this such as insurance issued for accident, disability income insurance, etc.
Who & When to File Patient-Centered Outcomes Research Fee:
Individuals responsible for issuing insurance policies but it should be fully insured. Additionally, if the plan is self-insured then the issuer is responsible to pay the fees.
This excise tax applies to policies and plans that ends on or after October 1, 2012 and before October 1, 2019. The pointers discussed below provide a clear understanding of the fees imposed by the Internal Revenue Service.
- Tax filers need to pay $2 for plans and policies ending after Sept 30, 2013.
- For plans and policies, ending after Sept 30, 2014 the fees would be adjusted as per the medical inflation.
- However, the fee is more likely to change for plans and policies ending after Sept 30, 2019.
Tax filers reporting this excise tax should keep in mind to file this excise tax return in IRS form 720 annually and before July 31. The plans and policies should have ended in the previous year.
It is good to prepare and file, as this can help eliminate mistakes. TaxExcise.com is an IRS certified e-filing service provider offering easy and simple ways to file form 720. As the first IRS certified e-filing service provider, we have upgraded ourselves with technology and in a way to make the filing process simple and hassle-free.