Updated IRS Form 720 available for Health Plans to Pay new ACA fee due July 31

Updated IRS Form 720 available for Health Plans to Pay new ACA fee due July 31

By Larry Grudzien , Attorney at Law

With health plans or policies facing a July 31 due date to pay the first patient-centered outcomes research fees, IRS has issued a revised Form 720 and instructions. Filers will enter covered lives subject to the $1 fee for the 2012 plan or policy year in Part II of Form 720 (line 133) to calculate the amount owed. Though Form 720 is used for quarterly excise taxes, filers should only complete line 133 when remitting the annual fee due July 31. Under the Affordable Care Act, the new fee applies to each plan or policy year that ends on or after Oct. 1, 2012, and before Oct. 1, 2019. 

 

Link to Full text of Form 720 (IRS, 3 Jun 2013) (PDF):

 

http://www.irs.gov/pub/irs-pdf/f720.pdf

 

Link to Full text of Form 720 instructions for Part II, line 133 (IRS, 3 Jun 2013):

http://www.irs.gov/pub/irs-pdf/i720.pdf

 

IRS webpage with Form 720, instructions, and related materials:

http://www.irs.gov/uac/Form-720,-Quarterly-Federal-Excise-Tax-Return

For More Information:

If you have any comments or questions regarding any of above information, please do not hesitate to call Larry Grudzien at (708) 717-9638 or Robert Slayton at 630-779-1144.