DC Tax Flash: IRS Posts Amount for Determining PCORTF Fee

Tax Alert
06.08.2020

The Internal Revenue Service (IRS) today issued Notice 2020-44, which instructs on calculating the fee imposed by Internal Revenue Code section 4375 and section 4376 for policy years and plan years that end on or after October 1, 2019, and before October 1, 2020.

The guidance sets $2.54 as the adjusted applicable dollar amount that applies for determining the Patient-Centered Outcomes Research Trust Fund (PCORTF) fee. This amount is determined using the percentage increase in the projected per capita amount of the National Health Expenditures published by HHS in February 2019, the IRS explains. The notice also provides transition relief "for calculating the average number of covered lives as part of calculating the applicable fee for policy years and plan years that end on or after October 1, 2019, and before October 1, 2020," the IRS notes.

The five-page text of Notice 2020-44 is posted here.


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