IRS issues proposed rules on Medical Device Excise Tax
On February 3, the Internal Revenue Service released proposed regulations that provide guidance on the federal Medical Device Excise Tax, which is scheduled to go into effect in 2013. The proposed regulations provide numerous definitions, and cover such topics as:
- What constitutes a taxable medical device
- Which medical devices are excluded because they are sold to individuals at retail for their individual use
- What constitutes manufacturing of a medical device
- Application of and liability for the tax
- Treatment of leases
- Determination of sales price
Treasury and the IRS have requested comments by May 7, 2012 and will hold a public hearing on the proposed rules on May 16, 2012. We anticipate that they will then seek to promulgate final rules, perhaps in the fall of 2012. During this webcast, we will discuss how these new rules may impact you in preparing for the new tax, and what you may need to do in light of the IRS guidance.
This webcast will be live and interactive. You will have the opportunity to ask questions through the website and the panelists will answer as many of your questions as time permits.
Featured panelists
Chris Ohmes, Ernst & Young LLP, Business Tax Services, Washington, D.C.
Bob Everitt, Ernst & Young LLP, Business Tax Services, Minneapolis, MN
Michael Udell, Ernst & Young LLP, Quantitative Economics and Statistics, Washington, D.C.
Moderator
Faranak Naghavi, Ernst & Young LLP, Indirect Tax Services, Washington, D.C.