With Legislation In Balance, IRS Gives Temporary Relief From Device Tax Penalty

  
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The Internal Revenue Services will hold off penalizing medical device-makers for late payments of the device tax for the first three quarters of the year, after lobbying from industry and lawmakers.

As lawmakers in Congress work out a continuing resolution that includes a temporary suspension of the 2.3% medical excise tax, federal tax collectors say they will give device-makers a temporary reprieve from having to pay penalties for not paying on time. This would give companies a chance to hold off paying the tax while the issue is being resolved in Congress if that tax is not suspended before Jan. 29, when first payments are due.

The tax on medical devices came into effect as part of the Affordable Care Act. Two years after the tax...

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