Final IRS Device Tax Rule Changes Little From Draft As Industry Focuses On Repeal Effort

Article preview from "The Gray Sheet" - December 10, 2012

Though the IRS final regulation offers some wins for industry, manufacturers continue to seek repeal of the device tax.

Final IRS Device Tax Rule Changes Little From Draft As Industry Focuses On Repeal Effort

Article preview from "The Gray Sheet" - December 10, 2012

The Internal Revenue Service’s final regulation to implement the 2.3% excise tax on U.S. device sales was issued Dec. 5, providing needed guidance to manufacturers, but industry remains squarely focused on getting rid of the tax, which they see as a job and innovation killer.

Groups including AdvaMed, the Medical Device Manufacturers Association and the Medical Imaging & Technology Alliance are reiterating their calls for Congress to either delay the tax or eliminate it completely.

“AdvaMed is carefully reviewing the regulations released today by the IRS,” AdvaMed CEO Stephen Ubl said Dec. 5. “But regardless, Congress should act to address this $30 billion tax before it takes effect on Jan. 1.” The tax “should be repealed,” he said.

“This final rule does nothing to prevent the loss of jobs and innovation that has already occurred as a result of the medical device tax, and will unfortunately continue if we do not repeal this bad policy,” echoed MDMA CEO Mark Leahey.

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