TAX POLICY CLIENT ALERT: Regulations on Medical Device Excise Tax Proposed; Opportunities for Comment

    View Authors 7 February 2012
    On Friday, February 3, 2012 the Internal Revenue Service and Department of the Treasury (Treasury) released a Notice of Proposed Rulemaking (NPRM) on the excise tax imposed on the sale of certain medical devices under section 4191 of the Internal Revenue Code (Code). Code section 4191 imposes a 2.3 percent excise tax on the sale of taxable medical devices by a manufacturer or importer after December 31, 2012. Section 4191(b)(1) provides that a “taxable medical device” is any device, as defined in section 201(h) of the Federal Food, Drug, and Cosmetic Act (FFDCA), intended for humans. Section 4191(b)(2) provides that the term “taxable medical device” does not include eyeglasses, contact lenses, hearing aids, and any other medical device determined by the Secretary of the Treasury to be of a type that is generally purchased by the general public at retail for individual use.