Final medical device excise tax regulations and interim guidance released
On December 5, the IRS released Notice 2012-77 which contains interim guidance with respect to the medical device excise tax which took effect on January 1, 2013. Information regarding the tax was provided in a previous article Medical Device Tax to Take Effect January 1, 2013 dated October 4, 2012. The interim guidance provides information with regard to a number of items including how to compute the constructive sales price, treatment of convenience kits, licensing of software and the tax treatment of donations of taxable medical devices. In addition the guidance provides that penalties related to tax deposits will be waived for the first three calendar quarters of 2013 provided taxpayers make a good faith effort to comply with the regulations. A summary of the interim guidance can be found here: Final Medical Device Regulations and Interim Guidance Provided.