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Medical Device Excise Tax
Effective January 1, 2013, dental laboratories will be responsible for collecting and remitting a 2.3% excise tax on sales of finished devices.
Dental laboratories will have to use Form 720 which is available at http://www.irs.gov to report and pay the tax. This form has to be filed quarterly and then a final Form 720 is submitted at the end of each year.
Typically with excise taxes businesses must use electronic funds transfer to make excise tax deposits. This can be done using the Electronic Federal Tax Payment System (http://www.irs.gov/efile) or same day wire transfers can be made from banking institutions.
The quarterly filings dates are April 30th, July 31st, October 31st and January 31st.
Excise taxes filed and deposited must be at least 95% of the net tax liability for the quarter. If your dental laboratory has an accountant or bookkeeper please make sure they are aware of this new tax.
NADL has been working to exempt dental devices from the MDT
In the spring of 2011 NADL and ADA submitted policy arguments that dental devices not be included in the administrative rule related to the medical device tax. The IRS denied the request.
In May of 2012, NADL joined with the American Dental Association and nearly a dozen other allied dental organization and submitted formal “comment” to the Internal Revenue Service arguing that the administrative rule should exempt dental devices from the medical device tax.
The IRS held a public hearing in Washington D.C. in mid-May and the NADL’s formal submission on exempting dental devices was denied.
In June 2012, the U.S. House of Representatives passed House Resolution H.R. 436, which would repeal the medical device excise tax, by a vote of 270-146. The U.S. Senate has not taken up the bill. Due to the party breakdown of the Senate and the Senate rules it does not appear that there are enough votes to force a hearing of the bill in the Senate. Unfortunately, even if the Senate were to pass the bill repealing the MDT, President Obama has indicated he would veto the repeal.
NADL and WSDLA continue to advocate for the exemption of dental devices from the MDT
Other Resources for the Medica Device Excise Tax:
Proposed MDT Rule - Federal Register:
http://www.gpo.gov/fdsys/pkg/FR-2012-02-07/pdf/2012-2493.pdf
Proposed MDT Rule - IRS Site:
http://www.irs.gov/pub/newsroom/reg-113770-10.pdf
MDT Law, Public Law 111-152 (124 Stat. 1029 (2010)), Sec 1405:
http://www.gpo.gov/fdsys/pkg/PLAW-111publ152/pdf/PLAW-111publ152.pdf
MDT IRS Frequently Asked Questions:
http://www.irs.gov/uac/Medical-Device-Excise-Tax:-Frequently-Asked-Questions
IRS Pub 510 – See Chapter 5 Manufacturers Tax:
(page 33-Manufacturers taxes based on sale price)
http://www.irs.gov/pub/irs-pdf/p510.pdf
Information and links will continue to be added to this site as they becomes available.
Some information on this page was provided by the National Association of Dental Laboratories
Dental laboratories will have to use Form 720 which is available at http://www.irs.gov to report and pay the tax. This form has to be filed quarterly and then a final Form 720 is submitted at the end of each year.
Typically with excise taxes businesses must use electronic funds transfer to make excise tax deposits. This can be done using the Electronic Federal Tax Payment System (http://www.irs.gov/efile) or same day wire transfers can be made from banking institutions.
The quarterly filings dates are April 30th, July 31st, October 31st and January 31st.
Excise taxes filed and deposited must be at least 95% of the net tax liability for the quarter. If your dental laboratory has an accountant or bookkeeper please make sure they are aware of this new tax.
NADL has been working to exempt dental devices from the MDT
In the spring of 2011 NADL and ADA submitted policy arguments that dental devices not be included in the administrative rule related to the medical device tax. The IRS denied the request.
In May of 2012, NADL joined with the American Dental Association and nearly a dozen other allied dental organization and submitted formal “comment” to the Internal Revenue Service arguing that the administrative rule should exempt dental devices from the medical device tax.
The IRS held a public hearing in Washington D.C. in mid-May and the NADL’s formal submission on exempting dental devices was denied.
In June 2012, the U.S. House of Representatives passed House Resolution H.R. 436, which would repeal the medical device excise tax, by a vote of 270-146. The U.S. Senate has not taken up the bill. Due to the party breakdown of the Senate and the Senate rules it does not appear that there are enough votes to force a hearing of the bill in the Senate. Unfortunately, even if the Senate were to pass the bill repealing the MDT, President Obama has indicated he would veto the repeal.
NADL and WSDLA continue to advocate for the exemption of dental devices from the MDT
Other Resources for the Medica Device Excise Tax:
Proposed MDT Rule - Federal Register:
http://www.gpo.gov/fdsys/pkg/FR-2012-02-07/pdf/2012-2493.pdf
Proposed MDT Rule - IRS Site:
http://www.irs.gov/pub/newsroom/reg-113770-10.pdf
MDT Law, Public Law 111-152 (124 Stat. 1029 (2010)), Sec 1405:
http://www.gpo.gov/fdsys/pkg/PLAW-111publ152/pdf/PLAW-111publ152.pdf
MDT IRS Frequently Asked Questions:
http://www.irs.gov/uac/Medical-Device-Excise-Tax:-Frequently-Asked-Questions
IRS Pub 510 – See Chapter 5 Manufacturers Tax:
(page 33-Manufacturers taxes based on sale price)
http://www.irs.gov/pub/irs-pdf/p510.pdf
Information and links will continue to be added to this site as they becomes available.
Some information on this page was provided by the National Association of Dental Laboratories
