Senate’s Vote to Reopen Government Also Suspends Medical Device Tax For Another Two Years

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According to National Public Radio, the U.S. Senate voted 81-18 on Day 3 of the Federal government shutdown to advance a continuing resolution that would fund the government until February 8, 2018.  New articles indicate that the Senate’s vote included pausing the medical device tax for another two years.

We previously wrote about a two-year-long suspension of the medical device tax, which ended on January 1, 2018.  With no legislation having been passed during those two years on the medical device tax, taxpayers are required to resume making semimonthly tax deposits to the Internal Revenue Service (IRS), with the first deposit due by January 29, 2018 to cover the first 15 days of January.  The IRS published a notice in January 2018, indicating that the IRS will provide temporary relief from the late payment penalty for the first three calendar quarters of 2018 if certain conditions are met.

New articles indicate that the House is also expected to include the medical device tax suspension in its vote, as the House already agreed to do so last week before the government shutdown.

If the final continuing resolution passes both the Senate and the House, the 2.3% medical device tax would once again be suspended – just days before the first check to the IRS becomes due.

Sabrina Wang
Sabrina Wang is an associate in our Orange County office. Ms. Wang received her Bachelor's Degree in Bioengineering in 2007 from National University of Singapore. After graduation, she worked as an engineer developing orthopedic devices in Utah and Singapore. In 2015, Ms. Wang graduated from the University of Virginia School of Law. While attending law school, Ms. Wang served on the Article Review Board of Virginia Journal of Law & Technology in her second year. Ms. Wang was a summer associate at the firm in 2014 and joined the firm as an associate in 2015.
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