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IRS Notice of Proposed Rulemaking and Notice
of Public Hearing Taxable Medical Devices
Medical Device Excise Tax: Frequently Asked Questions
The Medical Device excise Tax and Dental Laboratory-Made Devices
Journal of Dental Technology November/December 2012
The vast majority of devices
made by domestic dental laboratories do not meet the IRS’s proposed definition
of a taxable medical device.
Medical Device excise Tax – The Facts
- Effective Jan. 1, 2013, some dental
laboratories will be responsible for collecting and remitting a 2.3 percent excise
tax on sales of taxable medical devices.
- Dental laboratories that make direct
MDT payment to the IRS will have to use Form 720 which is available at 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.
- Businesses must use electronic
funds transfer to make excise tax deposits. This can be done using the Electronic
Federal Tax Payment System (www.irs.gov/efile) or same day wire transfers can
be made from banking institutions.
- The quarterly filings dates are April 30,
July 31, October 31 and January 31.
- Excise taxes filed and deposited must be
at least 95 percent 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.
Dental laboratories make crowns, bridges, dentures, dental implants, mouth
guards and orthodontic devices such as retainers and sleep apnea devices and
snore guards. The materials and components used to make these items (such as
alloys, ceramic, resins, abutments, individual denture teeth, etc.) are listed
with the FDA using FDA product codes.
Read the full article.