Report: The IRS is having trouble with the medical device tax (MassDevice)
A U.S. Treasury report on Obamacare's medical device tax reveals that the IRS is having problems figuring out which companies should be paying the 2.3% sales tax and that the tax bureau is only collecting about 76% of the tax it thinks is owed.
Not even the IRS can make sense of the medical device tax, a provision of the Affordable Care Act requiring medical device companies to pay a 2.3% levy on all U.S. sales, according to a report from a U.S. Treasury inspector general.
The tax is imposed on all U.S. sales of prescribed medical devices and contains a "retail exemption" on devices sold to the general public, such as contact lenses or diabetes devices and supplies. Estimates on the amount the tax is expected to range vary, from $30 billion over 10 years to the Joint Committee on Taxation's forecast for
$20 billion for fiscal years 2013 through 2019.
The IRS told MassDevice.com last month that it collected $1.4 billion last year in excise tax payments from medical device companies.
But a TIGTA audit released this week found that the IRS "cannot identify the population of medical device manufact...
