IRS Issues Final Regulations Implementing the Affordable Care Act’s Medical Device Excise Tax

more+
less-

On December 5, 2012, the Internal Revenue Service (IRS) published final regulations regarding the implementation of the excise tax applicable to the sale of certain medical devices, enacted by the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the ACA), and codified under section 4191 of the Internal Revenue Code (Code). The IRS developed the final regulations in consultation with the Food and Drug Administration (FDA) and the Centers for Medicare & Medicaid Services (CMS). The final regulations provide additional guidance regarding which devices are subject to the tax, address comments submitted to the IRS in response to proposed regulations issued in February 2012 and during a May 2012 public hearing, and seek further comment on certain issues.

The ACA imposed an excise tax on the sale of certain medical devices by the manufacturer, producer or importer of the device in an amount equal to 2.3% of the sale price, effective January 1, 2013. Excluded from the tax are eyeglasses, contact lenses, hearing aids and “any other medical device determined by the Secretary [of the Treasury] to be of a type that is generally purchased by the general public at retail for individual use.”

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

CMS
FDA
IRS
Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×