IRS has trouble with medical device tax

The Patient Protection and Affordable Care Act’s medical device tax failed to bring in the $1.2 billion the Internal Revenue Service expected during the during second and third quarters of fiscal year 2013, a Treasury Inspector General for Tax Administration report has found.

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The 2.3 percent excise tax — which took effect in January 2013 — brought in just $913.4 million during those two quarters. The Joint Committee on Taxation had projected the tax would bring in an estimated $20 billion in revenues for fiscal years 2013 through 2019. However, after conducting an audit to assess the IRS processing of tax returns and ensuring compliance, the TIGTA has concluded the IRS has encountered numerous problems in administering the tax.

 

Click here to read the full report on Becker’s Hospital Review.

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