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The Wagner Law Group Description 

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA & employee benefits, estate planning, employment, labor & human resources practice. 


Established in 1996, The Wagner Law Group has 23 attorneys engaged exclusively in employee benefits, estate planning and employment law. Seven of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.



Contact Info

The Wagner Law Group


  Integrity | Excellence


Massachusetts Office 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110

Florida Office 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418


San Francisco Office

Tel: (415) 625-0002

Fax: (415) 358-8300

315 Montgomery Street

Suite 904

San Francisco, CA 94104





July 11, 2013 

 State and Federal Law Alert


IRS Rules that PCORI Fees Are Deductible


The IRS has issued a Chief Counsel's Memorandum stating that Patient-Centered Outcomes Research Institute ("PCORI") fees imposed on health insurers and self-insured health plan sponsors under the Patient Protection and Affordable Care Act ("PPACA") are tax deductible. These fees are for funding medical research and comparing outcomes of various medical techniques. They apply for policy and plan years ending on or after October 1, 2012, and before October 1, 2019. (See the Alert of 12/20/12 for further details.)


The IRS said that Internal Revenue Code Section 162 allows a taxpayer to deduct all ordinary and necessary expenses incurred by the taxpayer in carrying on a trade or business. Because the PCORI fee is required to be paid by certain issuers or sponsors, the IRS ruled the fee to be both ordinary and necessary and therefore deductible under Code Section 162.


The PCORI fee for each plan year is due by July 31 of the calendar year immediately following the last day of the plan year. This means that if an employer sponsors a self-insured plan with a plan year ending any time from October 1, 2012 through December 31, 2012, the first PCORI fee must be paid by July 31, 2013. Other plan sponsors will not be required to pay the PCORI fee until 2014.


Plan sponsors of self-insured plans must remit the fee to IRS annually using IRS Form 720.


The Department of Labor has previously stated that, with the exception of multiemployer plans, PCORI fees may not be paid out of plan assets because the fee is imposed on the sponsor of the self-insured plan and not the plan itself.


This Newsletter is protected by copyright. Material appearing herein may be reproduced with appropriate credit.


Pursuant to Internal Revenue Service Circular 230, we hereby inform you that any advice set forth herein with respect to US federal tax issues is not intended or written by The Wagner Law Group to be used and cannot be used, by you or any taxpayer, for the purpose of avoiding penalties that may be imposed on you or any other person under the Internal Revenue Code.


This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.