Similar to
the penalties for not filing a tax return, if you do not pay the PCORI Fee
(Patient-Centered Outcomes Research Institute Fee) before the due date, a
penalty will be imposed on your tax amount and that is the PCORI penalty.
How much is the
PCORI Penalty?
For every
month or part of a month that the return is late, the penalty can vary between 5% and 25% of the
unpaid tax amount according to
Internal Revenue Code ยง6651. You should also note that Interest on overdue excise taxes may be assessed in
addition to penalties. The minimum penalty for not filing within 60 days of the
deadline, including extensions is $100, whichever is less, or the whole amount
of tax that has to be paid with the return.
Penalties
can be reconsidered if the sponsor provides a valid reason that is not due to wilful
neglect. However, it is always advisable to avoid this situation by paying the
PCORI Fee before the due date.
How to avoid PCORI penalty?
1) The first step to avoid penalties is choosing eFiling over manual filing. Manual errors and delayed IRS acknowledgments can result in late payments. Opting for our IRS-approved PCORI online portal, efile720 ensures timely processing.
2) Secondly, adhere to due dates to avoid penalty fees. The PCORI fee is due by July 31 of the calendar year.
WRAP:
In conclusion, after reading the blog, it is clear that paying the PCORI Fee on time before the due date is crucial to avoid penalties. Experience comfortable and timely filing with our IRS-approved online portal, eFile720.com.