TAX CLIENT ALERT: Treasury and IRS Request Formal Public Comments on Issues Regarding the Medical Device Excise Tax

    View Authors 6 December 2010

    The U.S Treasury Department (Treasury) and Internal Revenue Service (IRS) released Notice 2010-89 on December 3, 2010, inviting formal public comments regarding the recently enacted medical device excise tax imposed under section 4191 of the Internal Revenue Code on sales of medical devices after December 31, 2012.

    The Notice permits manufacturers, importers, distributors and retailers of products potentially subject to the excise tax to submit formal public comments addressing their specific issues and potentially having such issues addressed in formal guidance. The Notice generally requests comments regarding issues that “should be” addressed in guidance implementing the tax, presumably allowing taxpayers to submit comments on a broad array of issues. The Notice specifically requests comments on the exemption in section 4191(b)(2)(D) for any medical device “determined by the Secretary to be of a type which is generally purchased by the general public at retail for individual use.” Comments are also specifically requested on issues pertaining to the application of the existing Chapter 32 manufacturers excise tax rules to the new excise tax.