Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, August 25, 2014

Excise Tax Falls Short


Funding for the Affordable Care Act rests in part on a 2.3 percent excise tax on medical device sales.  The tax applies to cardiac defibrillators, imaging equipment and an assortment of other equipment sold to medical providers. 

Internal Revenue Service assemblage of the tax began in 2013.  Last Tuesday, a Treasury Department’s Inspector General report noted that taxpayer reporting on the IRS excise tax form does not account for all applicable medical device sales.  Furthermore, the tax agency is struggling to merge data afforded by taxpayers and cannot precisely identify all of the medical device makers that are required to file the form and pay the tax.  Treasury auditors estimate that the tax levy should have collected $1.2 billion in excise taxes; however, the IRS has only received $913 million. 

See Paul Jenks, IRS Struggles to Collect the Medical Device Excise Tax, Healthopolis, Aug. 20, 2014.


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