Pardon Our Dust
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As part of the funding for the Affordable Care Act, Congress included a 2.3 percent excise tax on the sale of medical devices by the manufacturer, producer or importer of a medical device. The tax is calculated based on gross sales. It is anticipated that the tax will raise $29 billion over 10 years. The statute included explicit exemptions for eyeglasses, contact lenses and hearing aids and also exempts devices purchased by the general public at retail for individual use. Proposed regulations were issued by the IRS concerning how the excise tax would be applied in February (REG-113770-10). The IRS also held a hearing on May 16, 2012, after the comment period had closed. The final rule does request further comment on several issues. Read more.
Stephanie A. Kennan
Senior Vice President
McGuireWoods Consulting
Bradley A. Ridlehoover, CPA
McGuireWoods LLP
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