Despite the Recent Issuance of Regulations by the IRS, Critical Questions Abound for the Medical Device Industry in Complying With the New Medical Device Excise Tax

Despite the Recent Issuance of Regulations by the IRS, Critical Questions Abound for the Medical Device Industry in Complying With the New Medical Device Excise Tax

Authors: Edward P. Rigby and Brian P. Collins, ParenteBeard, LLC

Background

A new excise tax is now imposed on the sale of certain medical devices under IRC Section 4191 effective for sales occurring after December 31, 2012. The new “medical device excise tax” was enacted as part of the Health Care and Education Reconciliation Act of 2010, in conjunction with the Patient Protection and Affordable Care Act (collectively

referred to as the Affordable Care Act, “ACA”). The tax is imposed at the rate of 2.3 percent of the price for which taxable medical devices are sold by the manufacturer, producer, or importer. In assisting our medical device industry clients in complying with this new tax, we have had several discussions with the IRS National Office regarding certain critical issues, such as: READ MORE

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Categories: Accounting, Life Sciences Industry Network

Author:NJ Tech Council

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