With Legislation In Balance, IRS Gives Temporary Relief From Device Tax Penalty
The Internal Revenue Services will hold off penalizing medical device-makers for late payments of the device tax for the first three quarters of the year, after lobbying from industry and lawmakers.
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Congress reached agreement Jan. 22 to end the three-day US government shutdown in a continuing resolution bill that includes a two-year device-tax suspension.
The US House of Representatives agreed Jan.18 to delay implementation of the medical device excise tax for another two years, until January 2020. The delay is part of a continuing resolution to fund the government until Feb. 16, and support the Children's Health Insurance Program for six more years. Industry groups are jubilant at the tax reprieve, but the budget plan also needs Senate approval.
With congressional options exhausted for 2017, industry hopes for IRS relief from the device-tax reality, either with a temporary waiver of deposit penalties or some broader tax-enforcement delay.