Medical Device Tax: IRS shows (some) mercy to medical device companies
The IRS will waive penalties for the first 3 quarters of 2013 for medical device companies who do not make semi-monthly payments on time due to "reasonable cause."
The IRS will waive penalties for late payments of the medical device excise tax for the first 3 quarters of 2013, provided it's an honest mistake, according to new regulations released the U.S. Treasury Thursday.
In doing so, the IRS acknowledged that medical device companies will have a difficult time complying with a new host of tax rules, which will require most companies to pay semi-monthly payments of 2.3% of all sales to the feds. While the move isn't the delay industry had been lobbying for, it is perhaps some small bit of conciliation on behalf of the agency that the regulations took so long to get finalized.