IRS Releases Final Rule on Medical Device Excise Tax
The Internal Revenue Service has released a final rule on the 2.3 percent excise tax on sales of certain medical devices, effective Jan. 1.
A taxable medical device is defined as a device listed with the FDA under section 510(j) of the Federal Food, Drug and Cosmetic Act, and 21 CFR part 807.
The tax exempts certain retail items, such as eyeglasses, hearing aids and any other devices purchased by the general public for individual use. The retail exemption safe harbor also applies to some devices that qualify as durable medical equipment, prosthetics, orthotics or supplies for which payment is available on a purchase basis under the Medicare Part B payment rules.
The first semimonthly deposit for the medical device excise tax, which covers the first 15 days of January, is due Jan. 29. The first quarterly return for the medical device excise tax is due April 30, for the months of January, February and March 2013.
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