Form 720

Form 720 is the IRS Quarterly Federal Excise Tax Return. For self-insured group health plan sponsors and HRA sponsors (including ICHRA, QSEHRA, EBHRA, and certain integrated §105 HRA designs), the most consequential use of Form 720 is the annual filing of the Patient-Centered Outcomes Research Institute (PCORI) fee under IRC §§4375 and 4376. The fee is calculated as the average number of lives covered during the policy/plan year multiplied by the applicable per-life dollar amount set by the IRS for the year that the policy or plan year ends.

2026 PCORI fee schedule

• Plan years ending October 1, 2024 – September 30, 2025: $3.47 per covered life. Set by IRS Notice 2024-83 (Internal Revenue Bulletin 2024-49, page 1206).
• Plan years ending October 1, 2025 – September 30, 2026: $3.84 per covered life. Set by IRS Notice 2025-61 (Internal Revenue Bulletin 2025-45, page 693).

Filing schedule

Form 720 reporting the PCORI fee is filed once per year, due July 31 of the calendar year following the plan year end. For a plan year ending in calendar year 2025, the Form 720 reporting the PCORI fee is due July 31, 2026; for a plan year ending in calendar year 2026, the return is due July 31, 2027. The fee is reported on Part II, IRS No. 133 of Form 720.

Who files

For a fully insured group health plan, the issuer (the insurance carrier) files and pays the fee. For a self-insured plan or arrangement — including ICHRAs, QSEHRAs, EBHRAs, and integrated §105 HRAs that qualify as applicable self-insured health plans — the plan sponsor (typically the employer) is responsible for filing Form 720 and remitting the fee.

Citations: IRC §§4375–4376; IRS Notice 2024-83 (IRB 2024-49); IRS Notice 2025-61 (IRB 2025-45); IRS PCORI fee filing due dates and applicable rates.

This page provides general information for plan sponsors and is not legal, tax, or compliance advice. Consult a qualified benefits attorney or tax advisor for situation-specific guidance, and verify all values against the most recent IRS Notice or Revenue Procedure before filing.