Tax Central Alert: Medical device excise tax pushed out two years

June 7, 2018|Corey Kolbe

The moratorium on the medical device excise tax has been extended an additional two years after being signed into law on January 22, 2018.

The moratorium had been scheduled to expire December 31, 2017. With this extension, the moratorium is retroactive to January 1, 2018 and thus, now the medical device excise tax does not go into effect until January 1, 2020.

Because of the moratorium, the medical device excise tax does not apply to the sale of taxable medical devices by the manufacturer, producer or importer of the device. In general, a taxable medical device is listed as such with the Food and Drug Administration, unless the device falls within an exemption from the tax.

If you have any questions related to this issue, please contact your Schenck professional.

Corey Kolbe, CPA, CFP®, MST, is a shareholder at Schenck with a strong background in corporate and individual income tax planning and compliance for closely held businesses. His experience includes planning and compliance related to multi-state and consolidated corporate tax issues and he specializes in the taxation of flow-through entities. Corey is also an accomplished presenter who speaks to various community professional groups and associations.

Tags: Tax