News | May 16, 2012

MITA Testifies on Proposed Medical Device Excise Tax

MITA calls for clarifications to final regulations in comment letter submitted to IRS

May 16, 2012 — David Fisher, vice president for healthcare policy and strategy at Siemens Healthcare, testified on behalf of the Medical Imaging & Technology Alliance (MITA) today at the Internal Revenue Service (IRS) Hearing on Proposed Medical Device Excise Tax Regulations [REG-113770-10] to voice the industry’s concerns about implementation of the tax imposed by the Affordable Care Act. MITA has submitted comments to the IRS on the proposed regulations, slated to go into effect in 2013, requesting clarification surrounding how and when the new tax will be put into practice.

“The medical device excise tax creates strong headwinds against an important sector of the U.S. economy,” said Gail Rodriguez, executive director of MITA. “However, in light of the complexity and necessary lead time for implementation of the tax, MITA is requesting that the IRS provide clarifications and revisions to several critical implementation issues as well as offering appropriate transition relief. We appreciate the efforts of Treasury and the IRS to provide the industry with the necessary regulatory guidance and look forward to working constructively with all parties to resolve these concerns.”

The 2.3 percent tax will be levied on the sale of medical devices, including innovative medical imaging technologies that are fundamental to the practice of medicine by diagnosing and treating disease, often reducing the need for costly medical services and invasive surgical procedures. The medical device tax poses significant challenges for manufacturers of these technologies, particularly those global companies with production and distribution facilities located in the United States and overseas to serve markets around the world.

In a comment letter submitted to the IRS on May 7, MITA offered the following key recommendations:

  1. Clarify the taxable manufacturer
  2. Option for a single reporting entity for the U.S. corporate group
  3. Streamline registration for intra-group exempt sales
  4. Clarify that service contracts and replacement components are not taxable
  5. Clarify that software upgrades are not taxable
  6. Clarify that refurbished products are not taxable
  7. Ensure that the tax is prospective as Congress intended and would apply only to sales and leases entered into after December 31, 2012
  8. Transition relief for the first three quarters of 2013, due to the extensive administrative challenges faced by medical device manufacturers to prepare for implementation of the new tax

 

For more information: www.medicalimaging.org.

Related Content

Houston Methodist Hospital Enters Multi-Year Technology and Research Agreement With Siemens Healthineers
News | Imaging | August 17, 2017
Houston Methodist Hospital and Siemens Healthineers have entered into a multi-year agreement to bring cutting-edge...
Patient Complexity, Subspecialization Impact List Prices for Radiologists' Services
News | Business | August 15, 2017
A new study by the Harvey L. Neiman Health Policy Institute finds that patient condition complexity and...
Upcoming radiology conferences, meetings and events.
News | August 14, 2017
ITN maintains a comprehensive listing of radiology specialty meetings on its website at ...
ACR Establishes Education Committee for Patient- and Family-Centered Care
News | Patient Engagement | August 09, 2017
Members of the new Education Committee of the American College of Radiology (ACR) Commission on Patient- and Family-...
ACR Annual Conference on Quality and Safety Offers Strategies for Radiology Practices
News | Business | August 08, 2017
The American College of Radiology (ACR) Annual Conference on Quality and Safety, scheduled for Oct. 13-14 in Boston,...
Sponsored Content | Videos | Business | July 28, 2017
Angelic McDonald, MSRS, CRA, FAHRA, regional director of imaging, Baylor Scott & White Health and the president-e
Radiation dose tracking in medical imaging is helping increase patient safety by lower X-ray doses.
Feature | Radiation Dose Management | July 26, 2017 | Dave Fornell
Patient X-ray radiation exposure from medical imaging has been a hot topic in radiology the past few years and has pr
Radiologists Seek Greater Involvement in Patient Care
News | Patient Engagement | July 20, 2017
Despite time and workload constraints, radiologists are looking for ways to become more directly involved in the care...
ACR Updates Radiation Oncology and Medical Physics Guidance With ASTRO and AAPM
News | Radiation Dose Management | July 19, 2017
July 19, 2017 — The American College of Radiology (ACR) recently collaborated with professional medical societies to
Overlay Init