On February 3, 2012, the Internal Revenue Service issued a proposed rule (REG-113770-10) providing guidance under IRC Section 4191 as to the excise tax imposed on the sale of certain medical devices.
The excise tax, mandated under provisions of the Patient Protection and Affordable Care Act, applies to sales of taxable medical devices after December 31, 2012. The proposed rule was published in the February 7 Federal Register.
IRC Section 4191 imposes an excise tax on the sale of certain medical devices by the manufacturer, producer, or importer of the device equal to 2.3 percent of the sale price. The tax on the devices industry is expected to generate $20 billion over 10 years.
The IRS also announced a May 16 public hearing on the proposed rule. Comments on the proposed rule and outlines of topics to be discussed at the public hearing are due May 7.
The issuance of the proposal prompted renewed calls to repeal the tax, which was created under the Patient Protection and Affordable Care Act.
Neville Bilimoria
Lisa Clark
Kathleen Carver Cheney
Mitchell Goldman
Patricia Hofstra
Matthew Jones
Philip Lebowitz
Martin Monaco Jr.
Amy E. McCracken
Mark Silberman
Harry Silver
Ralph Smith
William Weiner